Journal entry testing, three-way matching, duplicate payment searches and inventory turnover analyses are typical applications. The reliability of the analysis depends on testing the completeness and accuracy of the data used.
Source: BDS 315, BDS 330, BDS 500
Related terms
Journal entry testingTesting the appropriateness of journal entries recorded in the general ledger and other adjustments, in response to the risk of management override of controls.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.Information systems auditAn audit that evaluates the reliability of an entity's information systems, data integrity, access security and business continuity.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Appointment and registration of the auditorIn companies subject to independent audit, the election of the auditor by the general assembly for each financial year and the registration and announcement of the election in the trade registry.
Last updated: November 8, 2026 · This definition is for general information only.