Outlier Journal Entry Amounts

  • Monday, September 7, 2099
    8:00 am - 5:00 pm
Description

Select journal entries (JEs) that deviate more than two standard deviations from the average posted amount to the account:

  1. Calculate the average posted amount for each GL account:
    • SUMMARIZE on GL account, subtotaling on posted amount.
    • Define a computed field for account average posted amount as sum of [posted amount/COUNT]
  2. Calculate the standard deviation of posted amounts for each GL account:
    • Relate the JE table with the summarized table from Step 1
    • Define a computed field for the deviation of each transaction (difference between the account average posted amount and posted amount)
    • Define a computed field for the variance [Deviation of each transaction squared]
    • SUMMARIZE on GL account, subtotaling on variance
    • Define a computed field for account standard deviation posted amount [square root of sum of Variance/COUNT]
    • Relate the JE table with the standard deviation table
  3. Identify JEs that deviate from the average posted amount by more than 2 standard deviations
    • Extract records where the [ABS(Deviation) > Account Standard Deviation Posted Amount * 2]
Considerations
  • * In Step 3, the “2” in the equation represents 2 standard deviations as the outlier threshold. This number can be adjusted according to your audit needs.
Price Qty
Test 1show details + £0.00 (GBP)*  

* price includes taxes


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