What is meant by ’Factual’, ’Projected’ and ’Judgemental’ Journals in CaseWare Working Papers?

The Adjusting Journal Entries page has been updated to adhere to the Clarified International Standards on Auditing by adding Factual, Projected and Judgemental misstatement types to Normal Adjusting and Unrecorded Entries 

Misstatement

This option is only available when the adjusting entry type is set to Normal, Reclassifying, Eliminating, Tax, or Other Basis. Select the Misstatement type from the drop-down.

  • Factual: Misstatements where there is no doubt and where supporting documentation is available.
  • Projected: The auditor's best estimate of misstatements in populations; usually derived from sampling.
  • Judgmental: Differences arising from the judgements of management concerning accounting entries.


Unrecorded Type of Journals

Unrecorded proposed entries can represent as factual, projected or judgemental misstatements.

  • Unrecorded - factual: will not be recorded because of materiality or proposed entries that may be subsequently changed to a normal status.
  • Unrecorded - projected: are the auditor’s best estimate of misstatements in populations.

Unrecorded - judgemental: are differences arising from the judgements of management concerning accounting estimates, or the selection or application of accounting policies that the auditor considers inappropriate or unreasonable.

 

Attached Files
There are no attachments for this article.
Related Articles
How to remove all zero balance / unused accounts?
Viewed 9748 times since Thu, Jun 19, 2014
How to create a Combined Audit and Financials Engagement File
Viewed 4059 times since Thu, May 8, 2014
What are Document Tabs in CaseWare Working papers?
Viewed 4618 times since Fri, Jun 20, 2014
How to create new accounts in CaseWare’s Working Trial Balance
Viewed 5601 times since Fri, Jun 20, 2014
How to display the detail of any Adjusting Journal Entry in a Leadsheet
Viewed 12451 times since Wed, Jun 18, 2014
MENU