Author Question: Why is it important to define the universe of data? What will be an ideal ... (Read 92 times)

jho37 · **on:** Jul 6, 2018

Why is it important to define the universe of data?

What will be an ideal response?

Question 2

Discuss the purposes of the general journal and the general ledger, as well as how they are connected.

alexisweber49 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

Although the entire universe of data usually cannot be analyzed, it is important that it be defined. This involves identifying any relevant data that may exist and disregarding any irrelevant data. Without properly defining the universe, the forensic accountant cannot select a meaningful sample for detailed analysis. Although such an assessment must be performed early in the investigation, maintaining the proper boundaries of the data universe is an ongoing effort. As new information surfaces, the analyst must determine whether and how it should be considered in the analysis.

Answer to Question 2

The general journal is a book of original entry in which each transaction of a business is recorded in chronological or date orderas in a diary. The general ledger is a book in which amounts are sorted by ledger accounts so that all changes to an account are shown in one place. They are connected by the process of posting, which transfers chronological information, sorted by account, from the journal to the general ledger. Posting reference notations provide cross-referencing for the posting process.