The AI reconciliation balances. Is it right?
An unexplained adjustment can make a wrong reconciliation look complete.
“critical thinking, judgment, and communication are what will set them apart” (opens the source)
The question
At fictional North Quay Manufacturing in Manchester, you review an AI-assisted cash reconciliation. You are an intern; the audit senior reviews your work before it reaches the client.
| GBP | |
|---|---|
| Ledger cash before posting | 150000 |
| Confirmed bank payments not in ledger | 8000 |
| Bank statement balance | 142000 |
| Unsupported adjustment added to both sides | 4000 |
Invented data. The bank payments have cleared; they are not outstanding cheques.
- AI draft
- The tool subtracts the GBP8,000 payments from the ledger, then adds a GBP4,000 “timing adjustment” to both sides.
- Evidence
- There is no bank statement, invoice or ledger entry supporting the GBP4,000 adjustment.
“Would you mark this reconciliation complete? What do you do with the unexplained adjustment?”
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A strong answer, step by step
Open each step in turn. This is one strong answer, not the only one.
Step 1: Rebuild the simple bridge
What would you do here? Open the move you’d make.
Accept the reconciliation because the totals match.
Tempting, but it misses something. A fabricated item can be added to both sides and preserve equal totals.
Rebuild the bridge and trace every adjustment.
The strong move. Equal totals are not enough; each reconciling item needs a real basis.
See how a strong candidate says it
“GBP150,000 minus GBP8,000 equals GBP142,000. The confirmed unposted bank payments explain the difference without the extra GBP4,000.”
Why it works: Equal totals are not enough; each reconciling item needs a real basis.
Step 2: Trace the adjustment
“Inspect the source records and ask where the GBP4,000 came from. Do not create evidence to support the generated item.”
Why it works: An invented adjustment can survive a check that only compares final totals.
Step 3: Keep the right person responsible
“Flag the issue to the audit senior, with the source bridge and the unsupported item.”
Why it works: The reviewer needs the evidence and the open question, not just “AI made a mistake.”
Step 4: Close the review trail
“Record the unsupported item, the correction and the review. Add a check that each adjustment links to a source record.”
Why it works: The next reviewer must be able to follow the decision.
The answer, in short
- Decision
- Do not sign off the draft. Resolve the unsupported GBP4,000 item and document the valid cash bridge.
- Because
- The confirmed GBP8,000 bank payments already explain the balance difference.
- What would change it
- A genuine, independently supported timing item would need its own accounting analysis; it should not be rejected merely because AI proposed it.
Common traps
- Accepting the result because both sides match.
- Inventing a reason for the adjustment.
- Deleting the item without leaving a review trail.
Check your answer
- Did I rebuild the GBP8,000 bridge?
- Did I trace the GBP4,000 item to evidence?
- Did I respect the reviewer and management roles?
- Did I leave an auditable correction?
Last reviewed Nov 10, 2026