Читать книгу Wiley Practitioner's Guide to GAAS 2020 - Joanne M. Flood - Страница 131

Inappropriate journal entries and other adjustments often have certain unique characteristics. The auditor should use the following questions to help identify characteristics of inappropriate journal entries and other adjustments:

 Is the entry made to an unrelated, unusual, or seldom-used account?

 Is the entry made by an individual who typically does not make journal entries?

 Is the entry made at closing of the period or postclosing with little or no explanation or description?

 Do entries made during the preparation of financial statements lack account numbers?

 Does the entry contain round numbers or a consistent ending number?

The auditor should use the following questions to identify journal entries and adjustments made to accounts that have the following characteristics:

 Does the account consist of transactions that are complex or unusual in nature?

 Does the account contain significant estimates and period-end adjustments?

 Has the account been prone to errors in the past?

 Has the account not been regularly reconciled on a timely basis?

 Does the account contain unreconciled differences?

 Does the account contain intercompany transactions?

 Is the account otherwise associated with an identified risk of material misstatement due to fraud?