Which practice involves comparing totals from subsidiary records with control totals to detect discrepancies?

Which practice involves comparing totals from subsidiary records with control totals to detect discrepancies?

• A. Random sampling of records
• B. Increasing the number of forms
• C. Eliminating double-entry bookkeeping
• D. Periodic reconciliation of subsidiary records to control totals

Answer: (D)

Reconciliation is a control activity that cross-checks detail against totals. By periodically reconciling subsidiary records with the control totals, you verify that the sums in the detailed ledgers (like individual fines, payments, or fees) match the totals in the controlling account. This helps catch errors, omissions, or timing differences and prompts correction before financial reports are finalized. In a municipal court context, it ensures that amounts recorded in subsidiary records align with the overall revenue and fines tracked in the main ledger. The other options don’t systematically verify that the detailed records aggregate correctly to the totals, and one would remove a crucial check that helps ensure accuracy.

Reconciliation is a control activity that cross-checks detail against totals. By periodically reconciling subsidiary records with the control totals, you verify that the sums in the detailed ledgers (like individual fines, payments, or fees) match the totals in the controlling account. This helps catch errors, omissions, or timing differences and prompts correction before financial reports are finalized. In a municipal court context, it ensures that amounts recorded in subsidiary records align with the overall revenue and fines tracked in the main ledger. The other options don’t systematically verify that the detailed records aggregate correctly to the totals, and one would remove a crucial check that helps ensure accuracy.