How to analyze a ledger account ?
Answers
Answered by
5
The general ledger is the core of the financial reporting system, so it’s an ideal place to start an audit engagement. Analyzing 100% of the general ledger data helps you gain a deeper understanding of what has transpired during the year.
Since the general ledger holds nearly all the financial information used to create the financial statements, it often contains massive amounts of data. Rather than sort through the data manually, consider using different methods and software tools to quickly identify anomalies and outliers.
The AICPA Center for Audit Quality recommends using Computer Assisted Audit Techniques (CAATs) to run the following queries:
Find journal entries that do not balance
Find gaps in journal entry number sequence
Find high-dollar journal entries
Find possible duplicate account entries
Find round-dollar journal entries
Show journal entry information by employee
Find all entries made by a specific employee
Show values for the “journal entry type” code
Find manual entries
Sample journal entries (random or high dollar)
Find specific journal entries (by month, day or JE#)
Find all entries containing specific account(s)
Find all entries within a range of accounts
Find post-dated entries
Find entries with unusual (non-standard) descriptions
Find entries posted on weekends
Since the general ledger holds nearly all the financial information used to create the financial statements, it often contains massive amounts of data. Rather than sort through the data manually, consider using different methods and software tools to quickly identify anomalies and outliers.
The AICPA Center for Audit Quality recommends using Computer Assisted Audit Techniques (CAATs) to run the following queries:
Find journal entries that do not balance
Find gaps in journal entry number sequence
Find high-dollar journal entries
Find possible duplicate account entries
Find round-dollar journal entries
Show journal entry information by employee
Find all entries made by a specific employee
Show values for the “journal entry type” code
Find manual entries
Sample journal entries (random or high dollar)
Find specific journal entries (by month, day or JE#)
Find all entries containing specific account(s)
Find all entries within a range of accounts
Find post-dated entries
Find entries with unusual (non-standard) descriptions
Find entries posted on weekends
Similar questions