Question

True or false: one potential audit test is count the number of journal entries submitted by each user to detect unusually high volume of submissions

Answer 1

One potential audit test is to count the number of journal entries submitted by each user to detect unusually high volume of submissions. This can help identify fraudulent activity or manipulation of financial records.

Step-by-step explanation:

True. One potential audit test is to count the number of journal entries submitted by each user to detect an unusually high volume of submissions. This audit test is used to identify cases where a user may be engaging in fraudulent activity or attempting to manipulate financial records.

For example, if most users typically submit 10-20 journal entries per month, but one user consistently submits 100 or more entries, it could indicate that something is amiss and further investigation is needed.

By tracking the number of journal entries submitted by each user and comparing it to the expected or normal range, auditors can detect potential anomalies and take appropriate action.