Journal Entry Testing & Fraud Detection
Detect management override and fraudulent journal entries with AI. Analyze 100% of JEs in hours instead of sampling 5-10% over weeks.
Comprehensive JE Analysis
Manual JE Analysis
- Manual entries by senior management
- Entries without supporting docs
- Unusual account combinations
- Large manual adjustments
- Entries bypassing workflow
Period-End Clustering
- Last-day entries concentration
- Month-end/quarter-end spikes
- Year-end adjustments
- Post-close entries
- Timing manipulation patterns
Offsetting Entries
- Entries reversed next period
- Same amount opposite entries
- Wash transactions
- Temporary adjustments
- Reversal patterns
Round Number Detection
- Suspiciously round amounts
- Consistent round numbers
- Estimated adjustments
- Plug entries
- Balancing figures
Unusual Accounts
- Rarely used accounts
- Dormant account activity
- Unusual account pairs
- Revenue/expense manipulation
- Balance sheet adjustments
User & Authorization
- Entries by unauthorized users
- Segregation of duties violations
- Maker-checker bypasses
- After-hours entries
- Weekend/holiday entries
Why CORAA for JE Testing
100%
JE Coverage
Analyze all journal entries, not just 5-10% sample
90%
Time Reduction
Complete JE testing in hours instead of weeks
15+
Fraud Indicators
Comprehensive fraud detection across multiple dimensions
Who Uses JE Testing
External Auditors
Perform JE testing as required by auditing standards (ISA 240, AS 2401)
- Fraud risk assessment
- Management override detection
- Audit evidence
- Compliance with standards
Internal Audit Teams
Monitor journal entries for fraud and control violations
- Continuous monitoring
- Fraud detection
- Control testing
- Risk assessment
Finance Controllers
Ensure integrity of financial reporting and prevent manipulation
- Financial integrity
- Error detection
- Process improvement
- Control monitoring
Forensic Auditors
Investigate suspected fraud and financial statement manipulation
- Fraud investigation
- Evidence gathering
- Pattern analysis
- Red flag identification
Transform Your JE Testing
Analyze 100% of journal entries with AI-powered fraud detection