Journal entries (audit adjustments)

Once the trial balance items are loaded they populate the draft column on the trial balance page in the A section. Any errors/audit adjustments found during the work are entered as journal entries from the drop-down box at bottom right of every work item or displayed account line by selecting journal entry tab:

  • The please select drop-down shows all accounts in the trial balance
  • Select accounts to be adjusted and amount – use negatives for credits - cents may be included if required
  • Unlimited lines may be added to the journal entryAA1.png
  • If an account is not yet in the trial balance select add account from drop down in the within section where the new account is required
  • Add narration – to describe the nature of the error or for instances of non-monetary adjustments (such as disclosure errors) may just add narration only and no account amounts: AA1.png
  • Check total indicates if journal is in balance – it is not required that journals must balance to allow for instances where one-sided journals may be required

All journals are accumulated on the adjustments page W1 (this page may also be accessed from adjustments tab in top bar) – the adjustment displays on the adjustments page as follows: 

AA1.png

  • New adjustments default to pending status
  • A follow up may be added indicating the status of the error prior to agreement being reached over adjustment – journals with follow ups added may be printed as a client report (see below)
  • Once adjusted by client in financial statements they are marked as posted by selecting post journal
  • This changes the status to adjustedAA1.png
  • If journal not to be adjusted in the financial statements a comment must be added as to why not – it will then be classed as an unadjusted error

A summary at the top of the adjustment page represents the combined effect of pending, adjusted and unadjusted entries on income, expenses, assets, liabilities and profit: 

AA1.png

  • Once posted the journal updates the trial balance final column – indicated by changing to green colour
  • Posted adjustments also carry through to lead schedules
  • Final analytical review amounts include posted adjustments - but analytical review in the planning area continues to use the draft figures imported from client trial balance

The adjustments page also contains an option to print reports for giving to client:

  • Only commented items (explaining why not posted) show in unadjusted part of report (not pending items): 

AA1.png

  • These reports are normally used to accompany the management report and/or representation letter

Editing or deleting a journal must be done from the page where it was created. In this case we have an adjustment that was created on page C1:


Screen_Shot_2018-06-06_at_2.08.48_PM.png


(If the journal has been posted, first delete the "posted by" message to move back to pending)

To edit or delete the entry, follow the hyperlink back to C1:

Screen_Shot_2018-06-06_at_2.10.24_PM.png


Select the edit icon to the left of the link (if this is not visible the page has probably been concluded - so will need to be unconcluded first):

Screen_Shot_2018-06-06_at_2.12.41_PM.png

Now either edit and save or delete from the button at the bottom right.

 

 

 

 

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