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You have just been hired by the L&S Division of a Multi International Company and your first assignment which you were made aware of during the Interview process was to figure what cause a $1M Shortfall on the Bank reconciliation. The previous controller was recently fired because of this issue. You are provided the following information:
The bank reconciliations have not been fully completed and signed off for 2 years. This was the same case for other balance sheet reconciliations.
The past two years the audit has been performed by an outside firm and was a desk audit- rather known as ‘how are things going’ and the past controller would simply answer ‘just fine’.
Your staff is made up of a AP clerk, AR clerk and a staff accountant.
The division is $80M a year in revenue- the company as a whole is $1.5B in revenue
So given the data above how would you approach getting the ship back on course?
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