In this lesson, we will cover the topics stated:

1. Audit Adjustment/Reclassification
2. Prior Year Adjustment (PYJE)

Audit Adjustment (PAJE)

An audit adjustment is passed during the year with the following double entry:
  
Dr RM500 – Audit Fee 
Cr RM500 – Cash in hand 

1. At the lead schedule, navigate to menu Process>PAJE PRJE PYJE
    
2. Type of adjustment: Select PAJE
     
3. Enter the adjustment together with AJE narration
   
4. Click on the Save button.
    
5. The adjustment worksheet could be view at schedule
   • F-4 for PAJE
   • F-5 for PRJE
   • F-6 for CAJE

Prior Year Adjustment (PYJE)

Prior Year Adjustment is performed due to change in accounting policy or accounting error. 

1. At the lead schedule, navigate to menu Process>PAJE PRJE PYJE
    
2. Check the box for Prior Year Adjustment
   
3. Select the year end which the adjustment should be made.
    
4. Select the category of prior year adjustment such as De-recognize items from assets and liabilities or Re-classify assets and liabilities etc.
     
5. Enter the audit adjustment and the description of the adjustment, similar to PAJE.
    
6. Click on the Save button.