Reading a float break before it becomes a board item

A float break is rarely a single wrong journal. It is usually a timing mismatch between processor settlement, bank clearing, and the ledger cut-off your accountant chose last quarter and never revisited.

Start with the settlement calendar

Pull the processor’s settlement calendar for the month and mark every cut-off that does not land on a Taiwan banking day. Many breaks we see in remittance houses sit on holiday lag — funds leave the customer on Friday, the processor settles Tuesday, and the ledger posts Monday as if cash already moved.

Separate timing from integrity

Ask two questions in order. First: does the break reverse within the next two settlement cycles? If yes, document the timing and stop treating it as a control failure. Second: does any portion persist after those cycles? Persistent balances need sample tracing, not another roll-forward explanation.

What to bring to the next audit scoping call

Bring the float trial balance, the last three months of processor settlement files, and a one-page note on which holidays affected clearing. That package shortens our population work and keeps fees focused on the break that actually matters.