Audit of computerised data

While doing Audit, an auditor has to check the Purchase/Sales register with respective invoices in order to confirm himself about the authencity of accounting of such invoices. If volume of transactions are pretty more & internal control in respect of such transaction is strict, then test check procedure may be followed.

regards,

ratan

ohh shamita.....doing CA if not den its okeyi..??? wel der is a funda of sampling in audit......sampling means choosing a sample say 2 month sale/purchase out of 12 month....usse sirf apna opinion dena hota hai on true n fair view of financial statement...

Its the judgement of the auditor to check all or on sample basis but ya u have to check the purchase and sales register maintained in tally 9 with the hard copies or vouchers u can say to comlete the vouching.

If Quantum of transactions  is fairly large then Sampling Procedure may be Adopted for which relevantt SAP may be referred to. thanks

Some auditors just take trial balance from the party and prepare final accounts from it. They send the same to the client for signing and later sign themselves. They do this in very little time. This happens generally in Tax Audit cases. Does audit means preparing final accounts from trial balance.

absolutely ryt shamita...nt sum almost evry chartered do dis on a regular basis....bt audit is nt abt preparing financial statement....rather it is abt the cheking of tht financial statement. preparing financial statement is responsibility of mngt. and auditor responsibility is chek whether the fact mentioned in Fin. St. is true or not. & as per ICAI a CA cn nevr do audit of self made Fin St. otherwise he will break d rule of independence.leme tel u d defination of audit

  "an audit is an independent examinaition of books of account of an entity whether profit making or nt irrespective of its size & legal form, when such n audit is conducted wid a view to form an opinion der on."

if u still hv doubt u cn clear it wid me my id is rahul9312 @ gmail.com....n p

sory i forget to tel u d most imp fact....if d error rate found in given sample (2month sale/purchase) is high den auditor may perform d activity of detail cheking.....bt nobody do so in current era....

Dear Shamita,

Just want to say that the Depth of checking also depends upon the Scope of audit(which is determined with the prospective user's of your report-i:e for whom audit is being done)

1) Internal Audit- It is done for the management, therefore what has to be done or the key areas, depth of checking is decided with the management..NO ADDITIONAL WORK IS REQUIRED IN THIS CASE.. 

2) Tax Audit - It is done for the Income tax department, there is a fixed format of report(i: Form 3 CD) and in this case Auditor's generally focuses to fill the information as required under this form..NO ADDITIONAL WORK IS REQUIRED IN THIS CASE.. 

3) Statutory Audit - It  perhaps has the widest scope, since it is done for the shareholder's, society at large..Here Auditor  is required to comment upon "Whether Financial Statements presents True and Fair View or not" - this thing is not there in above cases..

One more thing in order to break ur myth that audit is NOT about preparing Financial Statements...Preparation of Financial Statements is the responsibility of the managment & not that of the Auditor..

I know that in practical life it's the Auditor who prepares the Financial Statements, but that's what is d difference between the Academics & Practical Life..

An auditor should have to check the Internal control system of company and if it is found good then no need to check accounts in dept. You can check the books of accounts by the way of checking of ledger, by major transaction amount, by checking receipt/bill etc, by checking account of Sales Tax, Service Tax, TDS paid account. By the way of checking the turnover ETC.