Test log entry using Excel

This selection process gives the audit team a number of journal entries: # 57, # 120, # 121, # 310, # 311, # 312, # 390, # # 478, # 479, # 549, # 550, # 609, and # 610. Some of these entries appear to be routine and may not require special monitoring (other than an explanation of why they were made). were posted on a public holiday); thus, the mission team decides to investigate only the journal entries having an impact on the income statement: n ° 311, n ° 390, n ° 478, n ° 609 and n ° 610. The team notes to again that scriptures # 609 and # .610 have already been selected to be tested in further tests.


In addition to the targeted testing of journal entries, the audit firm is also expected to select random journal entries for testing. Such a selection process can be relatively straightforward. For example, the team selects the following entries by scrolling through the list of journal entries and randomly selecting a few for a test sample: # 41, # 119, # 176, # 305, and No. 480.


After the audit team selects the journal entries for testing, they take action to finalize the procedures. The team requests appropriate documentation and explanations from the client. Two journal entries selected for testing are associated with multiple red flags: # 609 and # 610. The team received the appropriate information and made the necessary conclusions regarding the journal entry tests, assessed the impact of these results and, if necessary, performed additional test procedures.

In conclusion, as this use case demonstrates, the accounting professionals at Just4this Example were able to successfully apply CAAT to journal entry tests with the help of Microsoft Excel and without the need for specialized software. Using Microsoft Excel provides an alternative for small and medium-sized audit firms to consider when performing journal entry tests or other CAATs during audits.

About the authors

Inna Voytsekhivska, Ph.D., is Assistant Professor of Accounting at Western Michigan University. Igor Voytsekhivskyy, CPA, CIA, is the CFO of a Michigan-based health care information nonprofit. To comment on this article or suggest an idea for another article, contact Jeff Drew, a JofA editor, at [email protected] or 919-402-4056.



“Use Excel and Benford’s law to detect fraud”, JofA, April 2017

Auditing standard

AU-C article 240, Consideration of fraud in an audit of financial statements

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