If a bookkeeper uses QuickBooks to keep a company's books and performs bank account reconciliations within QuickBooks, is there any reason to perform the proof of cash procedure? Doesn't QuickBooks link everything together in such a way that this procedure would no longer be useful like it is when transactions are recorded in separate journals?
QuickBooks and Proof of Cash Procedure
Nov 04, 2005
1 Replies
No I don't think so because cash transitions on the books can still be manipulated by either understating receipts and disbursements or overstating both. The fact that the receipts and disburments are linked to the general ledger does not preclude a user from hanky panky.
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