One of the Sarbanes-Oxley control questions is regarding the reconciliation of vendor statements. Is this referring to every vendor statement, or only vendors with whom you are in dispute?


It is a good business practice to reconcile a vendor statement to your vendor account in the system whether or not you are in a dispute. Some companies will do reconciliations of vendors with whom they are not in dispute only periodically. If a vendor account is in dispute, a more frequent reconciliation would be appropriate. One discrepancy that frequently occurs is delayed or non-issuance of vendor credits that therefore, do not show up on the vendor statement. If you have recorded the credit in your records, then your reconciliation process should show the discrepancy.

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