Here is the background what is happening, currently I’m looking at adjustment report that auditor gave me to adjust bank accounts in manager system. The reason why the adjustment has been requested to me due their(accountant before myself) careless in reconciliation of bank account amount audited either failure of reconciliation from previous accountant that done to my client accounts. so is been 3 financial year reports that has not been made adjustment that now they realize it after they seen my management account.
I did told the auditor 3 times and might be not the last time that “manager accounting does not cater adjustment in journal entries for bank accounts.”
My question to users in this forum how did you guys do it?
@tut I attach another entries ask for the exact the impossible, another note it also ask for adjustment in retaining earnings. which is now manager does not allow directly.
The only way I’m seeing right now is separate the journal entries of bank account, and entered via the module from receipt and payment tab. which one step of the mess and untraceable I’ve forseen in coming financial year ends.
Of course, I do not know all the circumstances involved with this business. But it sounds like there are mistakes going back several years. You, your client, and the auditor may all have to accept that mistakes made in a prior accounting system must be resolved in the prior accounting system, not in Manager.
The best you can do in Manager is is enter correct starting balances as of your Manager start date. You cannot repair, in Manager, issues that result in ending balances from the previous system being in error.
The option I have right now is to have the client sit down with the auditor to have compromise in terms of adjusting the bank accounts. which then might result to qualified audited reports…
or I make untraceable entries where I adjust the starting balance of bank accounts in accordance to the adjustment amount they gave it to me and adjustment bank accounts via payment and receipt which is inappropriate the usage of the module and be done and forget. I had to put disclaim of such transaction.
@acecombat2, for what it’s worth, I can offer some thoughts as an auditor myself.
The first thing is, do not worry about trying to create the entries the auditors gave you in Manager as journal entries. We give adjusting entries in journal entry format because many accounting systems allow direct access to the general journal and so this is often the simplest way to make audit corrections. The main thing is to process the adjustments so you arrive at the account balances the auditors will sign off on, whether by journal entries or the tabs.
Second, I agree with @Tut that for the adjustment requesting changes to the starting balances, simply make the adjustments to the starting balances. For traceability, you may be able to create a -0- journal entry and attach the auditor’s JE file via the attachments function, with a brief explanation in the Narration (as an idea).
For the bank account adjustment (JE # 13), my version of Manager (21.1.55) actually does allow me to make journal entries, and record receipts and payments to Retained Earnings…but I would not worry about that; based on what I can see the amount they are asking you to adjust is so trivial I would think it is immaterial. I would suggest you ask them if you can pass on that adjustment. While I can’t speak to the auditing standards in Malaysia, I suspect they will let it go without it affecting the opinion…because when taken in conjunction with the entries for Maybank and RHB Bank in JE # 1, they net to -0- .
And then for good measure…point out to them they could have netted the adjustment they want for Retained Earnings in JE # 1 to a single 4,396 credit
That makes sense, I discussed to my client, and she said, she is fine if the audit opinion is qualified, as she highlighted the substantiality of the amount + the fault lies to the previous accountant + limitation of the manager system + not taking any loan in any time.
So I’m doing the best as I could without affecting the way I record all this time. I take your advice in recording 0 amount entry as diary for bank account entries. I still have strong feeling not doing anything that make difficult to trace on going basis.
The first step is to take out bank entries Maybank and rhb bank the entry for JE #1
About the Malaysian Accounting Standard Board (MASB), I’ve known they follow the United Kingdom standard along with Australian Accounting Standard. Since I’ve read the case study mostly in Australia scenario in local university, and we’re followed UK because Malaysia part of Commonwealth of nations.
am not Auditor so I have my worries in terms of “regulation”.
Gonna write “diaries” both in the system and by letter. thanks @tut and @p4unger. I’m truly appreciate reading and understood your opinion. Able to cut down overtime doing roundabout way in manager system tabs.
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