The Internal Accounting Review is a tool that allows you to run an internal audit on your company data. The Review looks for common transaction mistakes and potentially fraudulent activity by running a series of up to 15 checks against your company data. (There are only 11 checks for cash-basis users.) If transactions are found, they are listed under the appropriate Internal Accounting Review check name for your review. You then have the opportunity to take the appropriate action on each transaction.
What gets checked?
We have chosen 15 checks to run on your company data. These checks represent common transaction mistakes and/or conditions that might be revealed in an external audit. While this review is not exhaustive, it is intended to help you identify, investigate, and if necessary correct issues that may be problems. Here’s what we look for:
- Purchases or bills that don’t credit an accounts payable account
- Sales or invoices that don’t debit an accounts receivable account
- Payments or checks that don’t credit a cash account
- Receipts or money received that doesn’t debit a cash account
- Transactions that debit and credit the same general ledger account
- Possible duplicate transactions of the same type
- Vendor invoices or bills from prior periods that have not been received
- Transactions entered in the future
- Transactions posted to inactive records
- Un-reconciled cash accounts
- Inventory items that default to duplicate general ledger accounts
- Out of sequence checks
- Accounts receivable accounts that are out of balance with the aged receivables report
- Accounts payable accounts that are out of balance with the aged payables report
- Possible duplicate paychecks for an employee within a pay period
How to run the Internal Accounting Review
The Internal Accounting Review can be run in several ways:
- From the Reports & Forms menu, select Internal Accounting Review.
- From the System Navigation Aid in the Data Integrity section.
- If transactions that need to be reviewed are found when you attempt to change accounting periods, you will be given the option to run an Internal Accounting Review.
- In the Year-End wizard, select the Internal Accounting Review button on the Internal Accounting Review page of the wizard.