Cancelled checks

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1. Your manager likely wants you to trace the cancelled checks to the bank statement for a few reasons:

   1. Verification: While a cancelled check indicates it has been cashed, tracing it to the bank statement helps ensure that the transaction has been recorded correctly in the Accounting system. This is a critical step for maintaining accurate financial records.

   2. Reconciliation: Confirming that the amount, date, and check number match between the bank statement and your records is an essential part of the bank reconciliation process. This helps identify any discrepancies, errors, or unauthorized transactions.

   3. Audit Trail: Having a complete trail from the check to the bank statement creates a clear Audit trail that can be useful for internal reviews or external audits. It enhances accountability and transparency in financial reporting.

   4. Error Detection: Tracing the checks can help catch any mistakes, such as duplicate payments or typos in amounts, before they become bigger issues.

   Overall, while it may seem redundant, this practice helps maintain financial integrity and accuracy in the organization’s records.

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