Which entity reviews journal vouchers before general ledger entry?

The entity responsible for reviewing journal vouchers before their entry into the general ledger is typically the Accounts Payable department. This department plays a crucial role in the financial process, particularly in ensuring that all transactions are recorded accurately and comply with established financial policies. Reviewing journal vouchers helps maintain the integrity of financial records and prevents errors that could influence financial reporting and decision-making.

The Accounts Payable department checks the vouchers to ensure that they are properly documented, valid, and aligned with the company's accounting protocols. This oversight helps prevent fraudulent activities and ensures that all expenses are accurately reflected in the financial statements. Properly managed journal vouchers assist in tracking liabilities and managing cash flows effectively.

While other departments, such as the Audit Department or the Internal Compliance Unit, may have roles in monitoring and compliance, their focus is generally on the overarching auditing processes and ensuring the scalability and adherence to policies rather than the direct handling of journal voucher entries. The Financial Planning Team usually concentrates on analyzing financial forecasts and budgets rather than the transactional recording process in the general ledger. Thus, the most suitable choice is the Accounts Payable department due to its direct involvement in the voucher review process prior to ledger entry.