Data Analysis in Audits
The so-called Journal Entry Testing (JET) should be part of every annual audit. Both the international auditing standards (ISA) and the pronouncements of the German profession (IDW PS) on the proper performance of annual audits provide for the use of data analyses (in particular journal entry testing) as a targeted auditing action to obtain sufficient and appropriate audit evidence at various points.
Without a corresponding journal entry testing, the professional requirements for an adequate examination and documentation of an audit can often not be achieved.
Our Journal Entry Testing Service for Your Annual Audits
It is important to consider the use of Journal Entry Testing already in the planning phase of the annual audit. Since we understand ourselves as an interdisciplinary team consisting of accountants and data analysts, we can support you in the planning phase of your annual audit.
Diverse analyzes: standard-compliant and field-tested
In practice, numerous analyses based on accounting data have been established for annual audits, which are often summarised under the term “Journal Entry Testing (JET)”. The analyses most frequently described in the audit standards, which have also proven themselves on the basis of our many years of experience, are fully implemented in our software solution for direct applicability.
Quality and Efficiency through Journal Entry Testing
Due to the progressive use of IT systems in companies, the amount of audit-relevant data is constantly increasing. Business transactions are increasingly recorded and processed exclusively electronically. Here, Journal Entry Testing can help to increase the scope and depth of detail of audit activities in the annual audit without increasing the complexity of the audit.
Our Approach for Your Journal Entry Testing
However, the hurdles to conducting data analysis are high. Not all audit firms have the technical know-how (data export, preparation of the data) and the time to carry out comprehensive data analyzes. This is where our automated analysis approach helps. You do not have to deal with the technical details. You get the results in an Excel-based format that makes it easy for you to further process and document the results in your audit process. So you can concentrate on audit steps.
Our approach takes into account the requirements of the Institute for Auditors (IDW) for the use of data analysis in annual audits (IDW PH 9.330.3). We can cover a wide range of financial accounting and ERP systems.