Journal Entry Testing in Audits

Auditors are required to test journal entries in all audits according to AU-C 240, Consideration of Fraud in a Financial Statement Audit. In this video, I show you how to gain an understanding of a company's journal entry process, how to consider the related risks, and how to plan your journal entry testing. Management override is always a threat in every audit.

0:00 Introduction
0:58 Cooking the books
2:40 Testing journal entries
3:49 Walkthrough of journal entry process
6:35 Planning your journal entry tests
8:05 Testing journal entries
8:55 Management override
9:40 Summary

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