EZ-R Stats, LLC

Overview/Narrative

General Ledger Entries should be carefully reviewed, and several tests can and should be performed as part of the analytical review process:

1. Are general ledger entries being made on weekends or Federal holidays?
2. In the aggregate, which accounts have the most activity (e.g. clearing accounts)? Is this activity expected?
3. What are the largest and smallest amounts being individually posted?

Audit Objective

The objective is to determine the overall reasonableness of journal entries and that the entries are authorized.

Audit Procedures / Audit Program

1. Obtain journal entry transaction data in electronic format, note data elements.
2. Sort the data by journal entry number.
3. Summarize all journal entries by account, separated by debit and credit.
3. Prepare a schedule of all journal entries which originated on either a weekend or a federal holiday.
4. Prepare a schedule of the five largest and five smallest entries, both debit and credit.
5. Review the scheduled transactions to ensure source documents had been reviewed and approved and adequate support or explanation for the entry exists.
5. For the account summary data, determine that the accounts used appear appropriate.

6. Write a report explaining your observations, and provide conclusions and recommendations.