Why passing a one sided adjustments can be riskier to your engagement file?

The option for passing a one-sided adjustment can be tempting. This can happen in a case where the auditor have identified a material variance in one financial statement area but not in a position to ascertain the other financial area which is affected to complete an audit adjustment.


People also resort to one-sided adjustment to clear of any rounding issues. Let it be an unascertainable audit variance or rounding off entries, one sided postings can create havoc in your engagement file.Some of these risks include an out-of-balance Balance Sheet, incorrect income statement - which then leads to inaccurate uncorrected misstatements and audit completion.


CaseWare has inserted sufficient checks to minimise the risk of oversight with respect to one sided adjustments for the reviewer and audit partner/s as mentioned below.  



  • PPA5 - Out of Balance Entries


This automatic document looks at the Journal entries passed and will inform the partner of any journals that are not in balance.


  • 6-150 - Completion Memorandum


This final sign-off document offers the engagement partner one final reminder to confirm there are no out-of balance journals.



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