Overages or shortages should be excluded from the reconciliation form, unless the cause is known.

• A. True
• B. Not specified
• C. Sometimes
• D. False

Answer: (D)

When reconciling records to actual counts, every difference between what is recorded and what is on hand should be recorded as a variance. Overages and shortages must be included on the reconciliation even if the cause isn’t known yet. This creates an auditable trail, helps maintain strong internal controls, and signals that an investigation is needed. Excluding discrepancies simply because the cause is unknown would hide potential problems, delay corrective actions, and weaken the accuracy of the records. If the cause is later identified, the variance can be updated or resolved accordingly.