Which of the following is the objective of journal entry testing in a forensic accounting engagement?
A) to create a preliminary hypothesis
B) to identify and assess any inappropriate or unusual activity
C) to confirm the reasonableness of the suspicions of fraud
D) to determine the reliability of the recorded journal entries

Question

Quizplus · Accepted Answer

The objective of journal entry testing in a forensic accounting engagement is to identify and assess any inappropriate or unusual activity. Journal entry testing is conducted to detect any fraudulent activity happening in the books of accounts. It involves examining the journal entries made in the accounting system to determine if they are valid, appropriate, and properly supported. The testing is done to identify any entries that are unusual, unsupported, or not in line with the company's policies and procedures. By doing so, investigators can get closer to identifying the source of the fraud and the individuals involved in it.

Which of the Following Is the Objective of Journal Entry