Revenue Reversal
Identify equal-and-opposite journal entry pairs — a recognized fraud pattern.
- General ledger alone
- Compares with last year
What it checks
- Every leg flipped (whole-entry signature), not just one account.
- Short time window; period-end reversals weighted heaviest.
- Partial reversals — same accounts, smaller amount — matched separately.
- System-flagged auto-reversing accruals set aside, not deleted.
- A next-year reversal makes the original a candidate, never a misstatement on its own.
How the result is read
Legitimate reversals exist but should be small and patterned; clusters at period end by the same preparer are the fraud signature. The reversal itself never quantifies anything — it makes the original a candidate, and the original is tested on its own facts before a figure is struck. A partial reversal leaves the same footprint without the symmetry, so the match allows a proportional negation.
The worksheet, on the demo engagement
Reversing Entries, as the application draws it for Harrow Precision Engineering Ltd, the fictional demo engagement — one row per matched entry pair.
- Reversal pairs detected
- 11
- Same-day reversals
- 3
- Period-end reversals
- 5
- Same-preparer reversals
- 7
ISA 240 reversing-entry detection. Equal-and-opposite JEs posted within a short window, weighted heavier when same preparer prepares both sides.
Result grid6 rows
| Original JE_ID | Reversal JE_ID | Original date | Reversal date | Days apart | Amount |
|---|---|---|---|---|---|
| JV-44120 | JV-44199 | 2024-12-31 | 2025-01-02 | 2 | 902 |
| INV-77120 | CM-3120 | 2024-12-30 | 2025-01-09 | 10 | 1,840 |
| INV-77131 | CM-3122 | 2024-12-31 | 2025-01-12 | 12 | 960 |
| JV-44135 | JV-44210 | 2024-12-30 | 2025-01-03 | 4 | 1,500 |
| AP-90412 | AP-90498 | 2024-11-22 | 2024-11-25 | 3 | 320 |
| JV-41003 | JV-41008 | 2024-06-14 | 2024-06-14 | 0 | 180 |
In the application
Revenue Reversal is filed under Revenue & receivables, index letter C. "Run all analyses" runs it with every other analysis the ledger can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under C, beside an index of the source files with their SHA-256 fingerprints.
Also listed in the application as Reversing Entries
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Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required