How computerized testing detects journal entry fraud

Description

Abstract: Fraudulent journal entries are extremely susceptible to management override of internal controls. And manual testing may miss evidence of fraud, since it can only examine a portion of general ledger entries. Computerized testing, however, considers the entire dataset, reducing the risk of overlooking critical evidence. Such testing also allows fraud experts to devote more time to other aspects of the investigation, such as gathering information about the business and interviewing employees.