Auditing 2025: Auditing Journal Entries

This module will enable you to

• Explain the key objectives of journal testing
• Describe fraud risks associated with journal entries
• Spot common issues when selecting samples for testing
• Understand how technology can make testing more efficient and reduce risk

About the module

Journals are a key aspect of the financial statement preparation process, but they can also be challenging to audit. Auditors must decide how and when journal entries will be audited, and which entries to select. These decisions should be fully documented to provide clear justification.

Because journals are vulnerable to manipulation and fraud, auditors must understand the controls governing the journal entry process. They also need to remain alert to opportunities where controls might be overridden and fraud committed.

This short course explores common issues encountered when auditing journal entries and demonstrates how technology and analytical procedures can enhance audit quality and reduce fraud risk.