<P> In both cases where mistakes are identified as a result of the reconciliation adjustments should be undertaken in order for the account balance to match the supporting information . </P> <P> Currently there are no specific account standards for accountancy reconciliation per se . However, there are different rules for balancing many types of accounts . There are no specific regulations mentioned by IAS, ICAW and HMRC . GAAP provide different rules in regards to reconciliation to balance different types of accounts . According to GAAP, account reconciliation is a process that is performed through account conversion or double - entry accounting . </P> <P> In the United States, the passage in 2002 of the Sarbanes - Oxley Act (SOX) has emphasized the need for balance sheet account reconciliation to be included within a company's own procedures, not relying only on external auditors . The legislation was enacted "to protect shareholders and general public from accounting errors and fraudulent practices in the enterprise, as well as improve the accuracy of corporate disclosures ." SOX and other acts like it across the world have increased stress on organisations to comply . As a result, the accounting industry has sought ways to automate a previously strenuous manual process . The pressure of SOX coupled with the perennial need to mitigate erroneous reconciliation in the process . </P> <P> By using all of the information technology available, organizations can easily automate their reconciliation and for each financial close cycle less manual labour would be required . 90% of companies manually reconcile using Microsoft Excel spreadsheets in order to do so . This process is arduous allowing for further human error . Automating reconciliation can significantly reduce aforementioned errors and increase efficiency . Further benefits of automated reconciliation include centralised control, improved monitoring, reduced operational costs, increased productivity and efficiency, improved accessibility, data security improved and reduced audit risks and costs . </P>

What do you understand by reconciliation of cost and financial accounts