Journal Entry Risk-Scoring
Manual journal entries are high-risk items because they are not part of an automated process. JEs that fall around the end-of-period dates are also of concern.
Keywords in Description
Same Account, Same Amount
Seldom Used Accounts
Large Credits to Revenue 5 Days Prior to Period-End
Large Credits to Income Statement Non-Revenue Accounts
Prior-Year Entries Posted 5 Days After Year-End
Amounts Just Below Approval Threshold
Additional Popular Analytics Tests
No two organizations are identical, but the vast majority consider many of the same tests. Learn more about these popular analytics tests
Assessing the Risk When Auditing Journal Entries can be Challenging
This topic lends itself well to data analytics.
In this webinar we'll examine multiple metrics that contribute to the risk assessment of the individual postings as well as the accounts and employees concerned.