Quick check: SAS 99 (Consideration of Fraud) became effective for audits of periods beginning on or after Dec 15, 2002 — correct, not 2003? AU-C 240 carries that fraud framework forward and still underpins our required journal entry testing for management override; cite your source if you disagree.
And right — effective for periods beginning on or after Dec 15, 2002. > framework forward and still underpins our required journal entry testing for management We pull a dump and filter for round-dollar, off-hours JEs by high-privilege users, then vouch those exceptions; for smaller clients we keep the filters but drop the dollar threshold. You also flag “suspense” or “correction” in the description?
Correct — ‘periods beginning on or after 12/15/2002.’ I target late-posted manual JEs; PCAOB AS 2401 nuances apply.
Agreed — Dec ’02. AU-C 240.32 says to ‘test journal entries,’ and I start with admin/service accounts posting after hours and interface uploads with round-dollar spikes; if the ERP auto-posts, I pivot to config changes and bypass logs.
Yes, SAS 99 applied to audits with FYs starting in late 2002; I focus on ‘top-side’ consolidation JEs with no subledger tie and reconcile poster/approver IDs to the HR termination list and the SoD matrix — like shaking the tree to see what falls. Small caveat: PCAOB AS 2401 pushes issuers to lean harder into significant unusual transactions in addition to JE testing. Anyone else weighting consolidation topside heavier than entity-level cash sweeps?