Procedures Development of Integrity Verification, Math Accuracy, Completeness of Received Population in ERP Systems

Journal entry test is the primary audit procedure to identify fraud risk of company TOP management to bypass the internal system controls. In this research, fraud is the misrepresentation of financial statements, for instance, to avoid payment of additional taxes or to attract investors. Therefore, the procedure of journal entry testing is required in accordance with international standards of auditing. The way of journal entry testing should be developed individually for each customer, using its specific features and recommendations of the audit team, however, this work provides General guidelines and a standard method of determining the integrity, mathematical accuracy, completeness of financial population that can be used on real data from various ERP systems. This research is recommended for using in the auditing company, who conduct the procedures to test journal entries manually to automate the process and improve the quality of their services. In addition, this study will be valuable for those interested in undertaking the internal audit of the company prior to closing to confirm the correctness of accounting processes and operations and identify risks of fraudulent misrepresentation in the generated financial reports.