Overview
Bank transfers are expected to represent internal movement of cash between bank accounts. As a result, when fully captured, they should net to zero in your analysis.
Audit Sight is designed to:
Identify bank transfer activity
Confirm whether both sides of the transfer exist in the dataset
Clearly explain when and why transfers do not net
đź’ˇ Key Principle
If a transfer is fully captured (both inflow and outflow), it should net.
If it does not net, Audit Sight will classify it to explain why.
How Audit Sight Identifies Bank Transfers
Audit Sight identifies transfers by linking transactions that:
Have the same amount
Move in opposite directions
Occur within a close timeframe
Exist across bank accounts within the same entity
When both sides are present, Audit Sight confirms a true bank transfer.
How to Interpret Transfer-Related Classifications
Audit Sight uses specific classifications to communicate whether transfers are complete, incomplete, or part of more complex activity.
âś… Bank Transfer (Nets)
If a reconciling item is labeled Bank Transfer:
What this means:
Audit Sight has identified both sides of the transfer
Banking data is present for both accounts
The inflow and outflow are confirmed in the dataset
Expected outcome:
The transfer should net to zero
⚠️ Bank Transfer – Account Not Provided
If a reconciling item is labeled Bank Transfer – Account Not Provided:
What this means:
Audit Sight has identified transfer-like activity
But only one side of the transaction exists in the dataset
The corresponding bank account is not included
Important distinction:
This is still treated as a transfer (not operational activity)
However, Audit Sight cannot confirm or corroborate the full cash movement
Expected outcome:
The transfer will not net, by design
⚠️ Non-Revenue / Non-Expense Cash Adjustment (Mixed Activity)
If a reconciling item is labeled Non-Revenue Cash Adjustment or Non-Expense Cash Adjustment:
What this means:
The journal entry includes bank transfer activity, but not exclusively
There are additional non-cash or non-bank accounts involved
Example:
Bank account ↔ clearing account
Bank account ↔ accrual or adjustment account
Important distinction:
This is not a pure bank transfer
Only part of the entry represents cash movement
Expected outcome:
The activity will not net as a transfer
The remaining difference reflects a valid reconciling item, not missing data
Why Some Transfers Do Not Net
Audit Sight assumes that true bank transfers in isolation should net.
Any activity that does not net is intentionally classified into a different category to explain why:
Missing data → Bank Transfer – Account Not Provided
Mixed activity → Non-Revenue / Non-Expense Cash Adjustment
Other differences (timing, fees) → may require review
👉 This approach removes the need to manually trace every transaction—
the classification itself explains the outcome.
How to Use This in Practice
When reviewing reconciling items:
“Bank Transfer”
→ Expect it to net (both sides confirmed)“Bank Transfer – Account Not Provided”
→ Likely missing bank account data“Non-Revenue / Non-Expense Cash Adjustment”
→ Not a pure transfer; includes additional activity
Key Takeaway
Audit Sight follows a simple principle:
If it’s a true bank transfer and fully captured, it will net.
If it does not net, the classification tells you why.
This allows you to:
Quickly assess data completeness
Distinguish missing data from valid reconciling items
Reduce time spent investigating expected differences
