In online electronic funds transfer reconciliation, which procedure should be included?

In the context of online electronic funds transfer reconciliation, tracing is a critical procedure because it involves following the transaction process from the point of origin to the end result. This ensures that all transactions are recorded accurately and can be tracked throughout the entire financial system. By tracing transactions, the organization can confirm that the amounts transferred correspond to the entries in their financial records, thereby identifying any discrepancies or errors in the reconciliation process.

Tracing helps ensure that the records match with bank statements or reports from financial institutions, providing a clear audit trail for each transaction. It is essential for verifying the completeness and accuracy of the transactions involved in electronic funds transfers, thus contributing to the overall reliability of financial reporting and control procedures.