USA Auditing a checking reconciliation mismatch

Nov 25, 2019
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United States
An audit client uses Sage50 (GL software) and has, on more than one occasion, shown us bank reconciliation printouts in which the bulk of the transactions totals (total debits, total credits,) from the bank statement do not show up on the reconciliation.
For reference, ballpark, $320,000 total deposits & $400,000 total cash outflows in a month are on the bank statement, but only $80,000 total deposits & $150,000 total cash outflows are all that show up on the reconciliation summary. The reconciliation does show some outstanding checks, but they are less than 1% of total transactions. The ending bank statement balances match (between the statement & the reconciliation.)
It's been a long time since I worked in Sage50, and the only license of it in our office is on another person's machine, so I can't get into further detail until I make a solid argument for doing so.
The first thought I had was that the bank rec. was done before all the transactions were recorded. So I tried to find a combination of transactions that might fit this scenario. I found, on the deposits side, that this is impossible - there is one big deposit that is almost 80% of the total - if that's not used, all of the rest of the deposits together do not total up to the amount shown on the reconciliation.
So, it seems to me that this reconciliation, since it's a summary & not the full listing of transactions involved, may just be fake.
Does anyone else have any ideas how, in Sage, this could be a legitimate reconciliation? Thanks for your time.


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