Final answer:
Bank reconciliation is a useful approach to test for reconciling bank statements with the cash balance in the accounting records.
Step-by-step explanation:
Listing all bank transfers made a few days before and after the balance sheet date and tracing each to the accounting records for proper recording is a useful approach to test for reconciling bank statements with the cash balance in the accounting records. This process is known as bank reconciliation. By comparing the bank statement with the accounting records, discrepancies can be identified and resolved, ensuring accurate and complete financial reporting.