Business Data Controls and Reconciliation
Learn to write controls that fail visibly and to test whether the books really agree. No coding: you work on the data of Raket Parts, a fictional maker of rocket parts.
You will be able to
- write a control as a testable statement
- test whether a control ran all year
- reconcile the sales ledger to the general ledger
- trace a business event to the ledger lines it creates
Controls that can fail visibly
Write a control as a testable statement with its risk, owner, timing, evidence and failure action.
Did the control run all year?
Test whether a control operated over a period using all exceptions plus a fair sample, and say what the sample does not prove.
Do the two books agree?
Reconcile the sales ledger to the general ledger as at a date, explain each difference and keep unexplained ones open with an owner.
From business event to ledger line
Trace a business event from the system where it happened to the ledger lines, accounts and period it creates.
Can the control rely on its report?
Test whether a report a control relies on is complete and accurate by checking its filters and tying it to an independent total.
Controls and Reconciliation / Module 1
Controls that can fail visibly
Teun has a file that says invoices are checked. Learn how to make that promise testable: who checks, when, what evidence remains and what happens when the check fails.
Sections
Controls and Reconciliation / Module 1 / Free practice
Try it on your own question
Run it in the practice editor
The practice editors have the Raket Parts tables loaded. Type a query or a formula, run it and change it as often as you like. Nothing is marked.
Controls and Reconciliation / Module 2
Did the control run all year?
Teun Veldhorst, Finance Director, has a register that marks access approval as effective. With Ilse, he checks the records behind the word: every exception, a fair sample, and every month.
This module builds on module 1. If you are new to this, start with module 1.
Sections
Controls and Reconciliation / Module 2 / Free practice
Try it on your own question
Run it in the practice editor
The practice editors have the Raket Parts tables loaded. Type a query or a formula, run it and change it as often as you like. Nothing is marked.
Controls and Reconciliation / Module 3
Do the two books agree?
Before the October 2025 close, Teun asks whether invoiced sales, credit notes and receipts agree with the general ledger. Every month agrees but one, and two differences have no cause in the data.
This module builds on module 2. If you are new to this, start with module 2.
Sections
Controls and Reconciliation / Module 3 / Free practice
Try it on your own question
Run it in the practice editor
The practice editors have the Raket Parts tables loaded. Type a query or a formula, run it and change it as often as you like. Nothing is marked.
Controls and Reconciliation / Module 4
From business event to ledger line
Teun's new controller cannot find an invoice in the ledger. It is there, inside a daily summary. Follow sales, receipts, supplier invoices and staff costs from the event to the lines they create.
This module builds on module 3. If you are new to this, start with module 3.
Sections
Controls and Reconciliation / Module 4 / Free practice
Try it on your own question
Run it in the practice editor
The practice editors have the Raket Parts tables loaded. Type a query or a formula, run it and change it as often as you like. Nothing is marked.
Controls and Reconciliation / Module 5
Can the control rely on its report?
The duplicate-invoice check and the non-PO review both read extracts. Before Teun signs that the controls worked, he tests whether each extract is complete and accurate.
This module builds on module 4. If you are new to this, start with module 4.
Sections
Controls and Reconciliation / Module 5 / Free practice
Try it on your own question
Run it in the practice editor
The practice editors have the Raket Parts tables loaded. Type a query or a formula, run it and change it as often as you like. Nothing is marked.
Controls and Reconciliation / Module 1 / 1.1
1.1 What a control is
Section 1.1 complete
Next: 1.2 A control that worked
Controls and Reconciliation / Module 1 / 1.2
1.2 A control that worked
Section 1.2 complete
Next: 1.3 A control with gaps
Controls and Reconciliation / Module 1 / 1.3
1.3 A control with gaps
Section 1.3 complete
Next: 1.4 Timing difference or failure?
Controls and Reconciliation / Module 1 / 1.4
1.4 Timing difference or failure?
Section 1.4 complete
Next: Module 1 check
Continue to the module check Recap this section Back to module 1
Controls and Reconciliation / Module 1 / Check
Module 1 check
Module 1 complete
Next: Module 2, Did the control run all year?
Continue to module 2 Try it on your own question Recap module 1 Back to module 1
Controls and Reconciliation / Module 2 / 2.1
2.1 Status is not evidence
Section 2.1 complete
Next: 2.2 All exceptions, plus a sample
Controls and Reconciliation / Module 2 / 2.2
2.2 All exceptions, plus a sample
Controls and Reconciliation / Module 2 / 2.3
2.3 Month by month
Section 2.3 complete
Next: 2.4 What a sample cannot prove
Controls and Reconciliation / Module 2 / 2.4
2.4 What a sample cannot prove
Section 2.4 complete
Next: Module 2 check
Continue to the module check Recap this section Back to module 2
Controls and Reconciliation / Module 2 / Check
Module 2 check
Module 2 complete
Next: Module 3, Do the two books agree?
Continue to module 3 Try it on your own question Recap module 2 Back to module 2
Controls and Reconciliation / Module 3 / 3.2
3.2 Months that agree
Section 3.2 complete
Next: 3.3 The October difference
Controls and Reconciliation / Module 3 / 3.3
3.3 The October difference
Section 3.3 complete
Next: 3.4 Credit notes and receipts
Controls and Reconciliation / Module 3 / 3.4
3.4 Credit notes and receipts
Section 3.4 complete
Next: Module 3 check
Continue to the module check Recap this section Back to module 3
Controls and Reconciliation / Module 3 / Check
Module 3 check
Module 3 complete
Next: Module 4, From business event to ledger line
Continue to module 4 Try it on your own question Recap module 3 Back to module 3
Controls and Reconciliation / Module 4 / 4.1
4.1 One line, many documents
Section 4.1 complete
Next: 4.2 Sales: dispatch, invoice, receivable, revenue
Controls and Reconciliation / Module 4 / 4.2
4.2 Sales: dispatch, invoice, receivable, revenue
Section 4.2 complete
Next: 4.3 Money in and money out
Controls and Reconciliation / Module 4 / 4.4
4.4 When it is booked
Section 4.4 complete
Next: Module 4 check
Continue to the module check Recap this section Back to module 4
Controls and Reconciliation / Module 4 / Check
Module 4 check
Module 4 complete
Next: Module 5, Can the control rely on its report?
Continue to module 5 Try it on your own question Recap module 4 Back to module 4
Controls and Reconciliation / Module 5 / 5.1
5.1 The report is part of the control
Section 5.1 complete
Next: 5.2 Complete: every record is there
Controls and Reconciliation / Module 5 / 5.2
5.2 Complete: every record is there
Section 5.2 complete
Next: 5.3 Accurate: the figures are right
Controls and Reconciliation / Module 5 / 5.3
5.3 Accurate: the figures are right
Section 5.3 complete
Next: 5.4 Parameters and dates
Controls and Reconciliation / Module 5 / 5.4
5.4 Parameters and dates
Section 5.4 complete
Next: Module 5 check
Continue to the module check Recap this section Back to module 5
Controls and Reconciliation / Module 5 / Check
Module 5 check
Module 5 complete
Next: Module 6, coming later
Back to the Path Try it on your own question Recap module 5 Back to module 5
Controls and Reconciliation / Module 1 / Recap
Recap card
1.1 What a control is
What a control is
- A control needs risk, rule, owner, timing and evidence.
- Say what happens when it fails.
Common mistake
A good intention is not a test. A reviewer needs something dated to inspect.
Controls and Reconciliation / Module 1 / Recap
Recap card
1.2 A control that worked
A control that worked
- Inspect a rejected duplicate and its linked original.
- Do not confuse recorded outcome with review evidence.
Common mistake
One rejection is not universal proof. A separate period review is still needed.
Controls and Reconciliation / Module 1 / Recap
Recap card
1.3 A control with gaps
A control with gaps
- A policy is not proof that a control operated.
- Compare approval authority with the actual record.
Common mistake
Ignoring currencies. The amount and policy threshold must use comparable euros.
Controls and Reconciliation / Module 1 / Recap
Recap card
1.4 Timing difference or failure?
Timing difference or failure?
- Different invoice and posting dates can be legitimate.
- Investigate the required check before calling a timing difference a failure.
Common mistake
Calling all later dates failures. A timing difference alone does not establish a broken control.
Controls and Reconciliation / Module 1 / Recap
Recap card
Module 1: Controls that can fail visibly
What a control is
- A control needs risk, rule, owner, timing and evidence.
- Say what happens when it fails.
Common mistake
A good intention is not a test. A reviewer needs something dated to inspect.
A control that worked
- Inspect a rejected duplicate and its linked original.
- Do not confuse recorded outcome with review evidence.
Common mistake
One rejection is not universal proof. A separate period review is still needed.
A control with gaps
- A policy is not proof that a control operated.
- Compare approval authority with the actual record.
Common mistake
Ignoring currencies. The amount and policy threshold must use comparable euros.
Timing difference or failure?
- Different invoice and posting dates can be legitimate.
- Investigate the required check before calling a timing difference a failure.
Common mistake
Calling all later dates failures. A timing difference alone does not establish a broken control.
Controls and Reconciliation / Module 2 / Recap
Recap card
2.1 Status is not evidence
Status is not evidence
- A register status is a claim.
- Operating evidence: a record left by each run, such as an authoriser on a credit note.
Common mistake
The mistake. Signing a control off because the register says Effective.
Controls and Reconciliation / Module 2 / Recap
Recap card
2.2 All exceptions, plus a sample
All exceptions, plus a sample
- Examine every exception: 58 grants with no approval reference, none gave access.
- Sample normal cases from every month: 723 of 787 approvals start in June 2024.
Common mistake
The mistake. Sampling the exceptions, or sampling only the busiest month.
Controls and Reconciliation / Module 2 / Recap
Recap card
2.3 Month by month
Month by month
- Split by month and by kind of order.
- 26 pound orders above €50,000 had buyer approval only, in 8 months.
Common mistake
The mistake. Concluding from one clean split while another group fails.
Controls and Reconciliation / Module 2 / Recap
Recap card
2.4 What a sample cannot prove
What a sample cannot prove
- A sample result covers the sample.
- Name what stays open, such as 10 pound orders with no rate.
Common mistake
The mistake. Writing that a clean sample proves the whole year.
Controls and Reconciliation / Module 2 / Recap
Recap card
Module 2: Did the control run all year?
Status is not evidence
- A register status is a claim.
- Operating evidence: a record left by each run, such as an authoriser on a credit note.
Common mistake
The mistake. Signing a control off because the register says Effective.
All exceptions, plus a sample
- Examine every exception: 58 grants with no approval reference, none gave access.
- Sample normal cases from every month: 723 of 787 approvals start in June 2024.
Common mistake
The mistake. Sampling the exceptions, or sampling only the busiest month.
Month by month
- Split by month and by kind of order.
- 26 pound orders above €50,000 had buyer approval only, in 8 months.
Common mistake
The mistake. Concluding from one clean split while another group fails.
What a sample cannot prove
- A sample result covers the sample.
- Name what stays open, such as 10 pound orders with no rate.
Common mistake
The mistake. Writing that a clean sample proves the whole year.
Controls and Reconciliation / Module 3 / Recap
Recap card
3.1 As at which date
As at which date
- A reconciliation names a date, two sources and every difference.
- Sub-ledger: the detail. General ledger: the accounts.
Common mistake
The mistake. Saying two books agree with no date or sources.
Controls and Reconciliation / Module 3 / Recap
Recap card
3.2 Months that agree
Months that agree
- 12 of 13 months agree to the cent.
- Compare posting month with fiscal period.
Common mistake
The mistake. Mixing invoice dates with posting periods.
Controls and Reconciliation / Module 3 / Recap
Recap card
3.3 The October difference
The October difference
- October: ledger €62,279.15 higher, on 3 days.
- No cause in the data: keep it open with an owner.
Common mistake
The mistake. Clearing a difference with a journal because it is small.
Controls and Reconciliation / Module 3 / Recap
Recap card
3.4 Credit notes and receipts
Credit notes and receipts
- All 29 credit notes agree.
- Receipts: ledger €25,743.63 higher on 2 and 6 October; a match on amount only.
Common mistake
The mistake. Treating a matching amount as proof of payment.
Controls and Reconciliation / Module 3 / Recap
Recap card
Module 3: Do the two books agree?
As at which date
- A reconciliation names a date, two sources and every difference.
- Sub-ledger: the detail. General ledger: the accounts.
Common mistake
The mistake. Saying two books agree with no date or sources.
Months that agree
- 12 of 13 months agree to the cent.
- Compare posting month with fiscal period.
Common mistake
The mistake. Mixing invoice dates with posting periods.
The October difference
- October: ledger €62,279.15 higher, on 3 days.
- No cause in the data: keep it open with an owner.
Common mistake
The mistake. Clearing a difference with a journal because it is small.
Credit notes and receipts
- All 29 credit notes agree.
- Receipts: ledger €25,743.63 higher on 2 and 6 October; a match on amount only.
Common mistake
The mistake. Treating a matching amount as proof of payment.
Controls and Reconciliation / Module 4 / Recap
Recap card
4.1 One line, many documents
One line, many documents
- 46 invoices on 12th June 2025 became 8 lines.
- Debits positive, credits negative.
Common mistake
The mistake. Searching the ledger for an invoice reference.
Controls and Reconciliation / Module 4 / Recap
Recap card
4.2 Sales: dispatch, invoice, receivable, revenue
Sales: dispatch, invoice, receivable, revenue
- A sale: receivables debit, revenue credit by product line.
- X-FIN-05 is a teaching simplification.
Common mistake
The mistake. Naming a revenue account that no record shows.
Controls and Reconciliation / Module 4 / Recap
Recap card
4.3 Money in and money out
Money in and money out
- Receipts post as one pair a day; supplier invoices one journal each.
- X-SIN-00020: realised gain €1,649.74.
Common mistake
The mistake. Clearing a foreign payable at its booked value.
Controls and Reconciliation / Module 4 / Recap
Recap card
4.4 When it is booked
When it is booked
- The fiscal period follows the posting date.
- Staff costs: one allocation a month by unit.
Common mistake
The mistake. Using the invoice date to choose the period.
Controls and Reconciliation / Module 4 / Recap
Recap card
Module 4: From business event to ledger line
One line, many documents
- 46 invoices on 12th June 2025 became 8 lines.
- Debits positive, credits negative.
Common mistake
The mistake. Searching the ledger for an invoice reference.
Sales: dispatch, invoice, receivable, revenue
- A sale: receivables debit, revenue credit by product line.
- X-FIN-05 is a teaching simplification.
Common mistake
The mistake. Naming a revenue account that no record shows.
Money in and money out
- Receipts post as one pair a day; supplier invoices one journal each.
- X-SIN-00020: realised gain €1,649.74.
Common mistake
The mistake. Clearing a foreign payable at its booked value.
When it is booked
- The fiscal period follows the posting date.
- Staff costs: one allocation a month by unit.
Common mistake
The mistake. Using the invoice date to choose the period.
Controls and Reconciliation / Module 5 / Recap
Recap card
5.1 The report is part of the control
The report is part of the control
- A report a control reads is tested with it.
- The extract ties at €33,237,959.44 yet leaves out X-SIN-01237.
Common mistake
The mistake. Relying on a report because it came from the system.
Controls and Reconciliation / Module 5 / Recap
Recap card
5.2 Complete: every record is there
Complete: every record is there
- Count the report against its source.
- An EUR filter dropped 4 non-PO invoices.
Common mistake
The mistake. Reading the total without reading the filters.
Controls and Reconciliation / Module 5 / Recap
Recap card
5.3 Accurate: the figures are right
Accurate: the figures are right
- Tie to an independent total, such as the ledger.
- September differs by €973.82: the credit notes.
Common mistake
The mistake. Rounding a difference away.
Controls and Reconciliation / Module 5 / Recap
Recap card
5.4 Parameters and dates
Parameters and dates
- Record source, run date, settings and tie-out.
- A reliance note says whether the control can rely on the report.
Common mistake
The mistake. Filing a report without its settings.
Controls and Reconciliation / Module 5 / Recap
Recap card
Module 5: Can the control rely on its report?
The report is part of the control
- A report a control reads is tested with it.
- The extract ties at €33,237,959.44 yet leaves out X-SIN-01237.
Common mistake
The mistake. Relying on a report because it came from the system.
Complete: every record is there
- Count the report against its source.
- An EUR filter dropped 4 non-PO invoices.
Common mistake
The mistake. Reading the total without reading the filters.
Accurate: the figures are right
- Tie to an independent total, such as the ledger.
- September differs by €973.82: the credit notes.
Common mistake
The mistake. Rounding a difference away.
Parameters and dates
- Record source, run date, settings and tie-out.
- A reliance note says whether the control can rely on the report.
Common mistake
The mistake. Filing a report without its settings.