Journal entry approval is the requirement that a manual journal entry be checked and authorised by a person independent of the preparer before it affects the general ledger. The approver confirms that the entry has a valid business purpose, is supported by documents, uses the correct accounts, amounts and period, and is properly explained. Many accounting systems enforce this by holding an entry in a pending state until a user with approval rights releases it, a form of maker-checker control.
The control matters because manual journals bypass the checks built into routine transaction processing and have been the usual means of recording fraudulent adjustments to financial statements. Auditing standards require auditors to test journal entries for this reason. Policies commonly set approval levels by amount and type, with stricter review for entries that are large, unusual, posted late in the general ledger close or made by senior staff.