Week 8 - Test Journals

Question 1

Journals entries can include misstatements, therefore we need to…

Answer 1

Need to ensure journals are reasonable and well supported

Question 2

How often are journals ‘posted’?

Answer 2

Journals are ‘posted’ throughout the year as well as at the end of the year

Question 3

What do we need to ensure about journals being posted?

Answer 3

Need to ensuring testing covers all journals posted

Question 4

How do auditors test journals?

Answer 4

Rather than test each area individually, auditors normally carry out one test on all journals

Question 5

When and why can journal entries happen?

Answer 5

Journal entries can happen throughout the year when transactions happen and management need to make an adjustment

Question 6

When are there more journal entries?

Answer 6

At year end - want to make sure accounts are true and fair so need to correct errors

Question 7

What do we need to do to journal entries?

Answer 7

Properly authorise them