What process involves comparing and verifying two sets of records to ensure they are correct?

The process that involves comparing and verifying two sets of records to ensure their accuracy is known as reconciliation. Reconciliation is a crucial step in financial management and accounting, where it is essential to match transactions from different records—like bank statements with a company's ledger—to confirm that they align and verify that no discrepancies exist. This helps in identifying any errors or fraud in the accounting records.

Reconciliation ensures that all transactions are accounted for, and it often serves to maintain the integrity of financial data. It is commonly used in various financial contexts, such as bank reconciliation (aligning a bank statement with a company’s financial records) or account reconciliation (matching internal financial records with external statements). This process is vital for good financial practices and for maintaining trust in financial reporting.