What might an accountant need to include when reviewing a bank statement?

When an accountant reviews a bank statement, one of the critical components to consider is the inclusion of outstanding checks and deposits. Outstanding checks are checks that have been written and recorded in the company's books but have not yet cleared the bank. This means that the bank statement may show a higher cash balance than what the company’s records reflect, as it does not account for these outstanding items.

Additionally, outstanding deposits are amounts that have been recorded in the company's books but have not yet appeared on the bank statement. By reconciling these outstanding items, the accountant can ensure that the company's cash balance accurately reflects its true financial position. This process of reconciliation is essential for maintaining accurate financial records and ensuring compliance with internal controls.

In contrast, while monthly payroll reports, daily cash register logs, and employee expense reports may provide valuable information regarding a company's operations, they are not specifically necessary for the reconciliation of a bank statement. The focus when reviewing a bank statement is primarily on the cash transactions that directly affect the bank balance, such as the outstanding checks and deposits. This specificity reinforces the importance of understanding the dynamics of cash management and accurate record-keeping in accounting practices.