Auditors need to understand segregation of duties regarding the authorizing, posting and reviewing of journal entries and separation of reconciliation reviews. Journal entries are records for keeping an organization’s accounting transactions in chronological order and are used to construct financial statements at reporting period ends. There are three types of journal entries: system entries, manual entries and top-side entries.
This guide can be used to train auditors on the various aspects of an organization’s journal entry process. In addition, this tool includes management review considerations and common journal entry deficiencies.