Audit journals

[bolaji391]

Hi guys, what can be done as an auditor, if the prior year audit journal was not posted by the client accountant there by causing differences in the opening trial balance as per audited report and as per client. There is no enough time for the accountant to post those journal before sending the final general ledger. So what should the auditor do to rectify the opening balance differences when preparing the current audited report. Thanks

[JRSB]

The definitive source is the signed statements, sounds like they didn't post it into the accounting system. so they can post it in next year but you can ignore for the purpose of current audit assuming they post it correctly against opening retained earnings. then tick opening balances on the system, plus that correcting journal, to signed statements. what else can you do... it's not an error in the signed statements (from your description) so there's no restatement etc.

[Marek Muc]

It's not clear to me - did they include this entry in financial statements but didn't actually book it in the general ledger?

[bolaji391]

it was neither included in the financial statement nor general ledger

[Marek Muc]

Then it was non-existent at previous year closing, you need to adjust your audit documentation from last year

This year, the question is whether this is a material prior-period error or not and act accordingly:
https://ifrscommunity.com/knowledge-bas ... ink-errors