What should be investigated if found during bank reconciliation?

When conducting a bank reconciliation, checks outstanding for more than a month warrant investigation because they may indicate an issue with the reconciliation process. Checks that remain outstanding for an extended period could suggest that the payee has not deposited the check, or there may be a communication problem between the parties involved. Additionally, these outstanding checks may need to be voided and reissued if they remain uncashed for too long, as they can lead to discrepancies in financial records and impact cash flow management.

Investigation of outstanding checks is critical to maintaining accurate financial records and ensuring that the company's cash position is reported accurately. Keeping track of these items helps in understanding the company's liquidity and in planning cash outflows effectively. Checks outstanding for more than a month could also pose an audit risk if they indicate nonprofit activity or oversight on the part of the issuing entity.

While other factors found during bank reconciliation are also important, they typically do not require the same level of immediate concern or action as checks that have remained outstanding for an extended period. For example, deposits that haven’t cleared may simply be pending transactions and won't necessitate further action unless they frequently occur. Wired funds awaiting transfer typically represent scheduled transactions that are processed accurately and don’t require investigation unless there is a pattern of