Daily reconciliation of change funds

• A. Verifying amounts only at year-end.
• B. Verifying at the beginning and end of each work day.
• C. Not verifying to save time.
• D. Keeping receipts but not reconciling.

Answer: (B)

Daily reconciliation of change funds focuses on verifying the cash in the till at the start and end of each work day to ensure everything balances. Checking the starting amount confirms you’re beginning with the correct funds, and reconciling the ending amount after all transactions ensures any Cash-in or Cash-out activities were recorded accurately. This daily check creates an immediate audit trail and helps catch shortages, overages, or miscounts right away, protecting against errors and potential theft. Relying on only year-end verification misses everyday discrepancies, and not reconciling at all or just keeping receipts without confirmation fails to verify that the cash on hand matches the records, which undermines accountability and internal controls.