Data Analytics & Journal Entry Testing

Question 1

name 4 excel-based tests to detect journal entry fraud

Answer 1

1. filter for weekend/after-hours entries
2. look for round-dollar entries
3. identify entries prepared and approved by the same person
4. entries posted to seldom-used accounts

Question 2

name 3 risks of relying solely on data analytics

Answer 2

auditor skill gaps & training requirements,
evaluating data integrity & reliability,
risk of over-reliance on tools
ethical & privacy concerns