The story begins that I only have less than 2 working days to complete all the bank reconciliation reports before month end closed. Usually I have at least 3 to 4 full days to knock them down.
Lucky enough, I spent some good time beforehand. I already ran sets of back up data. And I helped fixing my co-worker's spreadsheet and formula. She used the file to upload her entries to SAP. They are critical to the month end data. I believe this proactive actions could save me time and prevent errors.
I was right. Half of the accounts are reconciled right away when the data were released. Also I could quickly figured out one bigger amount and one smaller number mistakes came from three major accounts. So after first two hour of very intensive calculation, I was able to narrow the variances to one major business account now.
But then I realized the harder part was following. This weird variance was a number that itself could not be found anywhere. It could mean anything, maybe a typo, maybe a combination of more than 2 numbers, maybe somebody's error...maybe..maybe... The thoughts terrifies me. It may cost me hours after hours to search and get nothing at the end.
I tried to follow up the suggestions and recommendations from co-worker and leader, searched around any piece of record in the office. The work day was ended, and I was still struggling for the variance. It's a little upset during the night, so I tried to relax and watched a novel before going to bed.
The next morning before to begin anything, thinking about the afternoon was the deadline already. I made the decision to draft the report first. In case if I finally end up could not knock it down, I will need to write off, then I need to submit a very well written report to explain what happen. I would need time and energy later on. This was one of the practice I heard from somewhere, do most important things first, and choose between 20/80.
However, one thing I did not expect was happened. I was required to post an adjusting entry. The story then turn to another direction because of the change of variance itself, it's another number!
It's almost 11 am, I don't have much time left. My leader stepped in and tried to help. I know that I am feeling desperate already. Then suddenly I wanted to run a payment subtotal related to monthly payroll, I just talked to myself that it couldn't be the case, the top 3 numbers in three individual dates may sum up as that variance... but I was wrong! It's the subtotal, they are the variance.....how could that be...
Well, I got my answer from my leader, these are the manual adjustment. The payroll agent deducted the expenses directly from the bank account during those dates and no one in the office taken care of them during the whole month long.
What a good learn! I quickly record the finding first to my notebook. I am thinking if I keep collecting these scenarios, I maybe able to build up my own audit bible, one day will I use that to track down the clues like a detective?
