What is aje and rje in audit?

Asked by: Stacey Monahan  |  Last update: June 14, 2026
Score: 4.6/5 (3 votes)

AJEs (Adjusting Journal Entries) and RJEs (Reclassifying Journal Entries) are audit adjustments made to financial records to ensure accuracy before closing books. AJEs correct errors or update balances (e.g., accruals, depreciation), while RJEs move amounts between accounts for proper financial statement presentation without changing net income.

What is aje and rje?

AJE - Adjusting Journal Entry. RJE - Reclassifying Journal Entry.

What is aje in audit?

Adjusting entries, or adjusting journal entries (AJE), are made to update the accounts and bring them to their correct balances.

What is the difference between an aje and rje?

RJE's for tax are for only reclassifying between income statement accounts. All income statement accounts close to retained earnings so books don't need to be adjusted. Any entry adjusting the balance sheet accounts may need to be actually booked thus is an AJE.

What is an rje?

Remote job entry (RJE) The JES2 remote job entry (RJE) function provides the ability to submit jobs and receive system output (SYSOUT) at remote facilities as if the jobs had been submitted at a local facility. In this topic, the term RJE workstation or remote is used to indicate these RJE facilities.

What is Audit?

18 related questions found

What does aje stand for in accounting?

Adjusting Journal Entry. An entry made at the end of an accounting period to recognize an income or expense in the period that it is incurred.

What are the 4 types of adjusting entries?

There are four main types of adjusting entries: accruals, deferrals, estimates, and depreciation, each serving a different purpose. Adjusting entries are made after the trial balance is prepared to align financial records with accounting principles.

What is cje in audit?

Definition: a Compound Journal Entry is in accounting an entry involving more than two accounts. In a Compound Journal Entry (CJE), there are 2 or more debits, credits, or both. Rather than making separate journal entries for the same transaction, we combine the debits and credits under one entry.

Is adjusting entries hard?

Preparing adjusting entries is one of the most challenging (but important) topics for beginners. Unearned revenues normally are current liabilities. The adjusting entry for unearned revenue will depend upon the original journal entry, whether it was recorded using the liability method or income method.

What are the 14 adjustments in final accounts?

The document lists 14 items that may require adjustments in final accounts: 1) Closing stock, 2) Outstanding expenses, 3) Prepaid or unexpired expenses, 4) Accrued or outstanding income, 5) Income received in advance or unearned income, 6) Depreciation, 7) Bad debts, 8) Provision for doubtful debts, 9) Provision for ...

What is an unadjusted journal entry?

In double-entry accounting, an unadjusted trial balance is a list of all the accounts in your general ledger and their balances at a specific point in time, before any adjusting entries are made.

What are the different types of Aje?

Based on its scope and power Aje (witch) is feared and revered by many. According to the Yoruba's belief, there are three types of Aje (witches). These include; Aje dudu (black witches); Aje Pupa (red witches) and Aje Funfun (white witches).

What is an example of an adjusting journal entry?

For example, if the supplies account had a $300 balance at the beginning of the month and $100 is still available in the supplies account at the end of the month, the company would record an adjusting entry for the $200 used during the month (300 – 100).

What are 7 journal entries?

Seven common accounting journal entries include recording sales, paying expenses (like rent or salaries), purchasing assets (like equipment) or inventory, receiving cash, paying liabilities, owner investments/withdrawals, and end-of-period adjusting entries for things like depreciation or accruals, all following double-entry bookkeeping rules (debits/credits) to reflect business activities accurately.
 

What are the 7 adjusting entries?

Adjusting entries are made for accrual of income, accrual of expenses, deferrals (income method or liability method), prepayments (asset method or expense method), depreciation, and allowances.

What are the 7 basic accounting categories?

7 basic accounting concepts

  • Revenue. For a business, the total amount of money the company receives for selling services and products is its revenue. ...
  • Expenses. Expenses are the costs a business incurs to generate revenue. ...
  • Assets. ...
  • Liabilities. ...
  • Capital. ...
  • Accounts. ...
  • Financial statements.

What is an aje in accounting?

An AJE is used to record transactions that have not yet been appropriately recorded in your general ledger. Basically, these are entries that make your books true and accurate.

What are the three rules of adjusting entries?

THREE ADJUSTING ENTRY RULES

  • Adjusting entries will never include cash. ...
  • Usually the adjusting entry will only have one debit and one credit.
  • The adjusting entry will ALWAYS have one balance sheet account (asset, liability, or equity) and one income statement account (revenue or expense) in the journal entry.

What are the four parts of a journal entry?

Key Components of a Journal Entry

  • Transaction Date: The date when the transaction occurred.
  • Accounts Affected: The names of the accounts that are debited and credited.
  • Debit and Credit Amounts: The monetary values assigned to each account.
  • Description or Narration: A brief explanation of the transaction's purpose.

What are the six types of journal entries?

There are generally six types of journal entries namely, opening entries, transfer entries, closing entries, compound entries, adjusting entries, reversing entries, and each represent a specific purpose for which such entries are made.

What are the top 5 journals?

The "top 5" journals vary significantly by field, but for general science and medicine, top contenders often include Nature, Science, The New England Journal of Medicine, The Lancet, and JAMA, while top economics journals are the "Big Five": American Economic Review, Econometrica, Journal of Political Economy, Quarterly Journal of Economics, and Review of Economic Studies, all highly influential in their specific disciplines. 

What are the five special journals in accounting?

Special Journals

  • Sales journal. The sales journal lists all credit sales made to customers. ...
  • Purchases journal. The purchases journal lists all credit purchases of merchandise. ...
  • Cash receipts journal. ...
  • Cash disbursements journal. ...
  • General journal entries.