Consistency checks - Review Points

Checkmybooks looks for inconsistencies in the client's accounting records which suggest that errors or omissions have been made.

Postings distributed to several different general ledger accounts

Looking for transactions posted inconsistently.

Example
Purchase invoices from Lawyers & Co posted to Professional Fees, Sundries, Legal Expenses and Rent and Rates.

Check Details
Looks for purchase invoices from the same supplier posted to more than one general ledger account.

Typical Description
"There are 9 postings for Lawyers & Co posted to 4 accounts".

Asset accounts that have a balance not consistent with their type

Looking for account balances that are inconsistent with their account type.

Example
A Bank Loan Account which has a debit balance at the year-end date.

Check Details
Looks for asset accounts with a credit balance at the year-end date and liability accounts that have a debit balance at the year-end date.

Typical Description
"Prepayments is an asset account but has a credit balance".

Transactions with a VAT code different to others in that account

Looking for transactions where the VAT treatment may be incorrect or that have been posted to the wrong account.

Example
A bank payment in the Insurance account with VAT at 20%.

Check Details
Looks for transactions in an account which have a VAT code different to most of the others in that account - using standard deviation.

Typical Description
"There are 3 postings in Rent and Rates that have a VAT code different to most of the others".

Transactions which are unusually high or low for the account

Looking for transactions of an amount that seems inconsistent with the other transactions in that account.

Example
A receipt of £5,000 in Commission Received when the other receipts are for less than £10.

Check Details
Looks for transactions in an account which have an amount much larger or smaller to most of the others in that account - using standard deviation.

Typical Description
"There are 7 postings in Sales Promotions that seem large compared to others".

Review Point categories