After you’ve provided the required accounting data, it’s time to sit back and let Audit Sight do the heavy lifting by performing journal entry testing with the Journal Entry Module.
What is the Journal Entry Module?
The Journal Entry Module is designed to automate the testing of journal entries, which is a critical step in audits under SAS 99. With this module, auditors can identify anomalies such as unusual revenue or expense transactions, while ensuring data completeness and accuracy. It also enhances transparency in the general ledger by detecting reversing journal entries and splitting batch transactions into manageable, bite-sized entries.
How Does It Work?
Audit Sight’s Journal Entry Module uses a rules-based engine to analyze transactional data from the general ledger. The engine identifies unusual patterns in journal entries, reconciles balances for completeness, and automatically detects reversing entries and split transactions. Each anomaly or finding is documented in a detailed report for easy review.
In this guide, we’ll show you how to request the journal entry testing workpaper in under a minute and explain what steps remain for you, the auditor, to complete.
Step 1: Navigate to Your Engagement and Select the Journal Entry Module
From the left sidebar, go to Engagements and locate the engagement where you want to run journal entry testing. Once inside the engagement, click Start to begin.
Step 2: Configure Your Journal Entry Request
Once you initiate the Journal Entry Module, it’s time to configure your request:
- Select the report date range.
- Choose the entities in scope.
-
Indicate whether the focus of your testing is
- Completeness Testing: Verifies that all entries from the general ledger are included and none are missing. This is always a required test in every audit.
- Unusual Revenue: Detects revenue transactions with based on unexpected offsets.
- Unusual Expenses: Flags unusual expense transactions based on unexpected offsets.
Note on Entities with Missing Data
If you request journal entry testing before all data is fully uploaded or synced, entities with missing data will display a warning message.
You can still proceed by selecting all entities you wish to test. The system will wait on generating the workpaper untill after the data has been successfully sycned.
Step 3: Download the Workpaper
Once the journal entry workpaper has been generated, you’ll receive an email with a link to download it. The workpaper is also available under the Work Papers tab within the engagement.
To download the workpaper, simply click the download icon on the far-right side of the screen.
Understanding the Workpaper
If you’d like to review an example of a completed journal entry workpaper with all relevant annotations, please email us at support@auditsight.com.
After you have have provided the accounting data, it’s time to sit back and let Audit Sight do the work by performing your Journal Entry Testing.
What is the Journal Entry Module?
The Journal Entry Module is a powerful tool designed to streamline and enhance the testing of journal entries during audits. Journal entry testing is required as part of SAS 99. With our module, auditors can identify potential anomalies, such as unusual transactions in revenue and expenses, while ensuring data completeness and accuracy with the underlying general ledger.
How Does It Work?
The Journal Entry Module analyzes accounting data to identify irregularities and potential risks. By leveraging automation, it performs tests like completeness checks and unusual revenue or expense detection. Before the data is processed, Audit Sight automatically identifies reversing journal entries and splits batch entries into smaller entries based on dollar amounts and account combinations, creating greater transparency in your client’s data.
In this article, we will go over how you can request the work paper in under a minute, and understand what is left for you, the auditor, to complete.
Step 1: Navigate to your engagement and select Journal Entry Testing
From the left sidebar, select Engagements and navigate to the engagement for which you are requesting the Journal Entry Testing. Once you are inside the engagement, select Start to begin the process.
Step 2: Configure your Journal Entry Request
Once you have created the cash proof,its now time to configure your request. First select the report date range. Next select the entities in scope, and finally select if this should revenue, expenses or both are in scope for testing.
Note on Entities with missing data.
Some users like to request the cash proof before data is fully provided or synced to our solution. In this instance, an entity with missing data will appear with the following warning message.
Its fine to go ahead and select all entities you wish to test. The solution will continue to update the work paper as new data is processed.
Step 3: Download the workpaper
Once the workpaper has been generated you will receive an email with a link to download the workpaper. The workpaper will be available on the Work Papers tab inside of the engagement. To download a workpaper click on the download icon on the far right.
Understanding the work paper
If you would like to receive an example of a completed workpaper with all relevant annotations email support@auditsight.com.
