Blind entry definition
/What is a Blind Entry?
A blind entry is a journal entry that does not include a description. It only contains the accounts to be charged and the debit and credit amounts. These entries typically result from a lack of procedures regarding how to construct a journal entry, as well as no approval process for journal entries before they are posted to the general ledger .
Problems with Blind Entries
Blind entries are to be discouraged, since they provide a reader with no information about the reason for a journal entry. They may be used to create fraudulent entries that alter an organization's financial statements .
Best Practices to Avoid Blind Entries
There are several ways to minimize or completely avoid the use of blind entries. Consider using the following best practices:
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Require employee training . Provide the general ledger accountant with proper training in how a journal entry is to be constructed, and convey the employer’s expectations for how each entry is to be described, along with the use of supporting information.
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Mandate journal entry approvals . Have a supervisor review all journal entries before they are posted, to ensure that a description is attached to each one.
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Review closing documentation. Have a senior accountant review all journal entries as part of the closing process, to ensure that each entry made into the system has been properly described and justified.