CAQ Issues Aid on Testing Journal Entries


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.

 

SPONSORED VIDEO

How KPMG is innovating the audit

KPMG's global audit team is using cognitive technology and alliances with tech and university partners to drive audit innovation. See how.

SPONSORED REPORT

States look to unclaimed property for revenue

This free report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.