Streamline your journal entry process and ensure compliance with our Journal Entries Audit Work Program. This program outlines a detailed approach for evaluating the creation, posting and retention of journal entries across various locations and time frames. It includes steps for obtaining an understanding of the company's journal entry procedures, performing walkthroughs to grasp the nuances of the process, and using computer-assisted audit tools to identify high-risk entries.

Organizations are guided to select a representative sample of journal entries to test for supporting evidence, proper authorization and accuracy in financial reporting. The document also emphasizes the importance of comparing the company’s practices against best practices to identify areas for improvement. Ultimately, this work program provides a structured framework to ensure that journal entries are accurately reflected in financial statements, thereby safeguarding the integrity of financial reporting and enhancing internal controls within the organization.

Best-practice audit steps include:

• Obtain an understanding of the company’s procedures related to the creation, posting and retention of journal entries.
• Perform a process walk-through with the process owner and necessary personnel to understand how journal entries are created, reviewed and posted.
• Gain an understanding of the differences in processing various types of journal entries.
• Create a process map by obtaining evidence of process steps and controls in place.