Completeness - MJEs 3261

  • All,
    First time poster and hoping to get some results.
    What measures are you/company taking to ensure a complete list off manual journal entries? As we currently have a standard MJE control that fits all processes throughout the company, we are trying to understanding how can we capture completeness.
    We have thought about including an MJE Log but how do you ensure the log captures all journal entries. We are aware some risk is always going to be present.
    Please share your thoughts/controls around this.

  • Interesting question.
    Do you mean

    1. how do I know my log of MJEs is complete, or
    2. have all MJEs that should have been posted been posted
      If the former, most large corporations don’t maintain a MJE log, rather more common is that a MJE is a reportable transaction type in the system so a sampleable population is easy to identify.
      If the latter, you can cover this twofold. Firstly each finacial process or major reconciliation is something that can generate the need for JEs and you can capture, control and assess the relevant risks there i.e a reconciliation control that identifies an adjusting JE should also consider whether the JE has been processed. Additionally, within the financial close process you would capture the risk that required JEs are not processed - with a common key control being financial statements review.

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