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CAQ Issues Aid on Testing Journal Entries
Please note: This item is from our archives and was published in 2009. It is provided for historical reference. The content may be out of date and links may no longer function.
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The Center for Audit Quality issued a practice aid on testing journal entries. The nonauthoritative document is designed to be a reference for auditors of public companies when applying certain sections of AU section 316, Consideration of Fraud in a Financial Statement Audit, of the PCAOB’s interim auditing standards. It specifically addresses gaining an understanding of internal controls over journal entries; selecting journal entries for testing, including the use of computer-assisted audit techniques; evaluating journal entries; and documenting the results of testing.
The guidance is based on existing professional literature, information gathered by members of a CAQ task force and the experiences of CAQ member firms. The practice aid is available here.
