What term describes the process where a financial account's balance is matched with a bank statement?

The term that describes the process where a financial account's balance is matched with a bank statement is reconciliation. This process involves comparing the records maintained by an individual or organization (like a check register or accounting ledger) with the bank's records of that account. The goal of reconciliation is to identify any discrepancies between the two sets of records, which can arise due to various reasons such as outstanding checks, deposits in transit, bank fees, or errors in data entry.

Reconciliation is crucial for ensuring the accuracy of financial statements and maintaining effective financial control. It allows the account holder to confirm that their accounting records are correct and up to date. This practice also plays a vital role in identifying fraudulent transactions or unauthorized access to accounts.

Audit, review, and verification have different meanings in the financial context. An audit refers to an independent examination of financial statements, a review is generally less comprehensive than an audit and provides limited assurance, and verification is the process of confirming the accuracy or truthfulness of information, which does not necessarily involve matching balances like reconciliation does.