Audit adjustments

[Terence]

On Friday, September 07, 2012 03:08 PM, Maf. King wrote:
> On Fri 7 September 12 10:18:39 Terence wrote:
>> Hi All,
>>
>> The auditor told me most accounting software allows a lump sum figure to
>> be put into retained earning for audit adjustment purpose instead of
>> putting in the entry line by line.  Can this also be done in GnuCash?
>> Thanks for the input in advance.
>>
>> T Wong
> Hi Terence,
>
> I'm still not clear on the problems that you are trying to fix.
>
> You can put a lump sum from any account to any other account at any time, with
> the caveat that you can't directly enter transactions in the AP and AR
> accounts used by the business features sub-system.
>
> I'm trying to imagine why you would need to adjust the A/R. The only reason I
> can think is that you maybe have been charging the wrong rate of tax or
> something similar. But IANAA, so there could be any number of things I don't
> know.
>
> Has every invoice covered by the audit period been paid in full?  if so, the
> A/R should be at zero, with the money is sitting in the bank and pointing at
> some income account(s).  Can't you make the audit adjustment from the income
> accout, rather than the invoices? (which would alter the total income and
> allow retained earnings to increase)
>
> Like I said, IANAA, and I'm not clear what and why you are trying to do!
>
> Maf.
>
Hi Maf,

The AR ageing report showing AR inactive invoices is separate from the 
audit adjustment I am trying to do.  First, in the past, when I did a 
close book, I had to put the figures into retained earnings 
individually.  I did not know there was a Close Book feature now. 
Yesterday, I clicked on that function and selected Retained Earnings.  I 
did all the close book for me.  That was great as I had to do exactly 
that.  But then when I looked at the CoA, I found there are three 
retained earnings with different currencies.  In our CoA, we have 
multicurrencies current assets, e.g. Euro and AUD.  I cannot recall if 
those retained earnings - Euro, retained earning AUD were already there 
in the pull down menu when I chose Close Book.  Were they created 
automatically by Close Book execution?

Second, I need to do some audit adjustments as recommended by the 
auditor.  E.g. there are some entries for adjusting some P&L entries and 
some for Balance Sheet items.  I was told that some accounting software 
e.g. Peachtree or DacEasy has a feature which allows a user to put in 
audit adjustment in a total amount.  That will be easy would not it?  
Therefore, I just wonder if GnuCash also has this feature.  Otherwise, 
I'd need to put in an entry on 1/1/2012 for those accounts which need 
adjusted and put a transfer into Retained Earnings.  That also leads to 
another question.  Now that I have Retained Earnings, Retained Earnings 
with a currency in the suffix, do I select Retained Earnings?  I am now 
in the process of doing it and when finished, I'd need to run a Balance 
Sheet on 1/1/2012 to check with the audited Balance sheet provided by 
the auditor.

Thanks.