The following procedures and guidelines are applicable to the University of Arkansas at Little Rock (UA Little Rock) and are in compliance with recommendations from Internal Audit in the University’s Bond Covenant Compliance Audit Report for the years ended June 30, 2012 and June 30, 2013. Show I. Types of Journal EntriesThere are various types of journal entries generated by Financial Services and other departments at UA Little Rock, as follows:
II. DocumentationProper documentation should provide enough detail to satisfy an auditor. Proper documentation also reduces and/or eliminates the need for individual recollection by the person who created the journal entry/voucher. The following documents may be used for journal entry/voucher support:
III. PreparerThe preparer should review the entry prior to submitting to the approver or next level reviewer. The preparer should review the entry for the following:
IV. ApproverAfter completion of the journal entry, the preparer needs to submit the journal entry to the next level reviewer. An approver is someone who is authorized to review journal entries in each department.* An approver/reviewer signs and dates the journal entry once he or she acknowledges that the entry is:
*The preparer and approver cannot be the same individual. V. EntererAfter the journal entry has been reviewed, it is forwarded to the Fiscal Support Analyst or other staff member in General Accounting for data entry. VI. CompleterOnce the journal entry has been entered into the financial system, the completer reviews it a final time and posts the entry to the general ledger. VII. Purpose, Comments, and RemarksThe Journal Description must describe the purpose of the journal entry. Example: Corr acct charged on I0560754 Note: Journal Descriptions may be up to 35 characters long. However, the Purpose on the Journal Voucher Form template is unlimited and should thoroughly explain the reason for the journal entry. A reasonably informed person should be able to understand the purpose of the entry. (Ex: To correct the accounts charged on I0560754 Home Depot-Check #C00528395. To record merchant fees for the month of June 2012). Line Descriptions must describe the entry. The explanation may be the same as the Journal Description or it may be different. Examples of Line Descriptions: VIII. Record KeepingAll journal entries and supporting documentation processed in Financial Services are scanned and stored in ImageNow. In addition, journal entries are kept on file for one year in the General Accounting area and transferred to the warehouse upon completion of the annual audit. The university’s retention period for journal entries is governed by the Legislative Audit Retention Policy.(1) (1)Upon completion of the university’s audit, any documentation covered by Ark. Code Ann. 19-4-815 and 19-4-1108 that has not been properly stored by means of electronic imaging shall be retained for three (3) years after the audit date. Documentation that has been stored by means of electronic imaging, except as noted by the auditor-in-charge, may be properly disposed of as of the date of the audit exit conference. This policy does not override longer periods of retention required by laws or regulations of other agencies or parties to which the university must adhere. How can you correct a general entry that has already been posted?Go into the Transaction Entry window by following this path: Transactions > Financial > General Entry. Then, click the Correct button located at the top of the window. In the Action field, choose 'Back Out a Journal Entry and Create a Correcting Entry'. Then enter the Original Journal Entry you want to fix.
What procedure is used to record an entry in the General Journal?Journal Entry Format
Each journal entry includes the date, the amount of the debit and credit, the titles of the accounts being debited and credited (with the title of the credited account being indented), and also a short narration of why the journal entry is being recorded.
What is a journal entry made to correct an error in the ledger called?A correcting entry is a journal entry that is made in order to fix an erroneous transaction that had previously been recorded in the general ledger. For example, the monthly depreciation entry might have been erroneously made to the amortization expense account.
What is the correcting entry method?What is a correcting entry? A correcting entry in accounting fixes a mistake posted in your books. For example, you might enter the wrong amount for a transaction or post an entry in the wrong account. You must make correcting journal entries as soon as you find an error.
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