During which step of the Record-to-Report process are journal entries typically reviewed?

Within the Record-to-Report process, journal entries are typically reviewed during the reconciliation step. This phase is crucial as it involves verifying that the financial data recorded in journals aligns with various sources and accounts. The primary focus during reconciliation is to ensure that all transactions are accurately accounted for and that any discrepancies are identified and rectified before moving on to the reporting phase.

Reconciliation allows organizations to confirm the integrity of their financial data, fostering trust among stakeholders and ensuring compliance with accounting standards. It is during this step that accountants or financial analysts will compare the entries recorded in the general ledger against supporting documentation, such as bank statements or invoices, to ensure that everything adds up correctly and that there are no missing or erroneous entries.

In contrast, while journal entries are initially created and executed in the preparation and execution steps, the critical review and validation occur specifically during reconciliation, emphasizing its importance in maintaining accurate financial records. The reporting phase, although vital for presenting the financial outcomes, generally focuses on compiling and summarizing the results rather than specific journal entry reviews.