The management team thinks some transactions are not recorded properly because some of the account balance(s) in the Profit and Loss report below do(es) not look reasonable. A Xero specialist looked at the accounts and found that several transactions were not reconciled.

Write a memo to the management team and explain how you can use the functions in Xero to investigate this issue. Explain some possible reasons for the discrepancies. With what function(s) can you find clear indicator(s) for the source of the error? Please provide instructions on the key steps (e.g., key buttons to click, tabs, reports etc.), and attach screenshots when necessary. Provide suggestions to the business that how to reconcile them. Explain the impact on the accounting records. Also, explain in your memo how the above functions in Xero can act as internal controls.

I'm not really sure how to go about this question, so some advice would help a lot thanks

From the perspective that the example one is done incorrectly

Example:

Mine:

Profit and Loss ACCTG222 For the period 1 April 2020 to 1 April 2023 Consultancy Debt Collection Entertainment Entertainment Non-Deductible Freight \& Courier General Expenses Insurance Interest on Loans Interest on Overdraft Interest Other Legal Expenses Licences \& Registrations Light, Power \& Heating Minor Assets Motor Vehicle Expenses Office Expenses Plant \& Equipment Hir Postage Printing \& stationery Rates \begin{tabular}{lrr} \hline & 1APR20201APR \\ \hline Recruitment Costs & 780.00 \\ \hline Rent & 19,700.00 \\ \hline Staff Expenses & 10,825.00 \\ \hline Staff Training & 1,970.00 \\ \hline Subcontractors & 9,230.00 \\ \hline Subscriptions & 1,540.00 \\ \hline Telephone, Tolls \& Internet & 1,242.31 \\ \hline Travel Local & 2,660.00 \\ \hline Wages \& Salaries & 94,972.22 \\ \hline Total Operating Expenses \\ \hline Net Profit & 209,296.29 \\ \hline \end{tabular} For the neriod 1 Anril 2020 to 1 Anril 2023 1 Profit and Loss ACCTG222 For the period 1 April 2020 to 1 April 2023 Consultancy Debt Collection Entertainment Entertainment Non-Deductible Freight \& Courier General Expenses Insurance Interest on Loans Interest on Overdraft Interest Other Legal Expenses Licences \& Registrations Light, Power \& Heating Minor Assets Motor Vehicle Expenses Office Expenses Plant \& Equipment Hir Postage Printing \& stationery Rates \begin{tabular}{lrr} \hline & 1APR20201APR \\ \hline Recruitment Costs & 780.00 \\ \hline Rent & 19,700.00 \\ \hline Staff Expenses & 10,825.00 \\ \hline Staff Training & 1,970.00 \\ \hline Subcontractors & 9,230.00 \\ \hline Subscriptions & 1,540.00 \\ \hline Telephone, Tolls \& Internet & 1,242.31 \\ \hline Travel Local & 2,660.00 \\ \hline Wages \& Salaries & 94,972.22 \\ \hline Total Operating Expenses \\ \hline Net Profit & 209,296.29 \\ \hline \end{tabular} For the neriod 1 Anril 2020 to 1 Anril 2023 1