DESCRIPTION
This module discusses the underlying concepts of journal entry testing, a key audit procedure designed to address the risk of management override of controls and other fraud risks. Through interactive group activities and discussion, participants will improve their ability to identify high-risk transactions and improve the journal entry testing process.
LEARNING OBJECTIVES
- Explain the purpose of journal entry testing, including its importance in responding to fraud risk and the risk of management override of controls
- Evaluate selected journal entries to assess whether they indicate potential fraud or error
- Document journal entry testing procedures, results, and conclusions clearly
