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How do I assess unbalanced transactions?

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Summary

Learn about the importance of balanced transactions in MindBridge's data integrity check.


How to assess unbalanced transactions

MindBridge expects balanced transactions, as they are essential to providing the highest quality risk assessment possible. Any unbalanced transactions will be identified.

In double-entry accounting, debits and credits offset one another, creating an organization's monetary flows, which are integral to MindBridge's machine learning analytics.

MindBridge will identify any unbalanced transactions for you to review. When encountering unbalanced transactions, there are a number of factors that you should consider with your professional judgment:

  • Are the unbalanced transactions material?
  • Are unbalanced transactions so common that they could be an indication of incomplete or inaccurate data?
  • Can the unbalanced transactions be explained reasonably?

When encountering unbalanced transactions, you have an opportunity to demonstrate your expertise by engaging with your clients to discover how and why they were created.

Unbalanced transactions could indicate poor controls, an improper ERP or accounting system configuration, human error, or a number of other possibilities.


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