Journal entry testing is a required audit procedure that addresses the risk of
management override of controls. This guide is designed to help audit methodology leads understand
the use of anomaly detection in journal entry testing in accordance with:
- PCAOB Auditing Standards AS 2401, pars. 57-62,
- AICPA Auditing Standards AU-C 240, pars. 31-32, and
- International Standard on Auditing ISA 240, pars. 31-32
This guide also includes some basics of dealing with sub-populations and samples.