Accenture Academy Blog
It appears that MacBillim N. Hydem has struck again. This time, the victim appears to be Any Inc. Amid the cries of the accounting department, investigators have determined that Hydem manipulated the accounting systems to place charges on the balance sheet while issuing payments to himself. Unfortunately, Hydem managed to slip everyone’s grasp.

And for Any Inc., the saga continues. Apparently this activity has been ongoing for quite some time. As a result, Any Inc. will have to restate many of its filings. This has attracted regulatory scrutiny due to concerns for other possible errors. The stock for Any Inc., which was once considered the most prized stock in the market, has plummeted and regulators have suspended trading.

When asked for comments, the CFO of Any Inc. stated, “Had we analyzed and reconciled these accounts properly, much of this could have been avoided. We might not have been able to prevent it, but we could have recognized, stopped, and pursued it sooner.”

Have you ever come across this type of scenario? For much of the balance sheet, reconciliations can be fairly straightforward. They have a clear method for balancing, such as balancing cash in a checkbook against a bank statement.

What about accounts such as prepaids, accruals, and reserves? In these cases, the distinction between what should be and what should not be in the account is not so clear cut. These rely on the analytical skills and judgment of the preparer and, in too many cases, are just a beginning balance, a list of transactions, and an ending balance.

Do you want to avoid becoming the next Any Inc.? The Accenture Academy course Preparing Ledger to Subledger Reconciliations will guide you through scenarios to explain how to perform quality reconciliations for balance sheet accounts that require a manual subledger. In doing so, you may be able to avoid being Hydem’s next victim.
 

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