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very very urgent

M (13 Points)

10 May 2007

i'm going for statutory audit 1st time in accounts maintained on computerised system, so give me some tips that how should i persue?

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7 Replies

theone (55 Points)
Replied 10 May 2007

The One Says:

You would be following essentially the same procedures that one would follow in any other Audit. The only change will be that you would have to review the system of accounts in computerised form - get to know the system from the persons who are familiar with it or who are using it. (viz., how the accounts are maintained, whether all the registers etc required by law are maintained and how the computerised accounting system affects the internal control ie who is allowed to view, access and alter records)
Review the prior audit reports and if your firm has conducted similar audits before you could use the working papers and audit program/plans as a guide. Also you may need to conduct testing of the system using dummy data, use of hash totals and computerised sampling techniques (this can be easily achieved by importing the data from the accounts system like Tally to Excel). In case the Audit feature like Tally Audit is being utilized then review the Tally Audit Report.

Hope this helps ........ let The One know how it goes

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M (22 Points)
Replied 10 May 2007

thank u very much. it will be very useful for me. I will let u know that how it is going.But one thing i can't understand that u said data can be imported from tally to excel, this is what?

theone (55 Points)
Replied 10 May 2007

The One says:

I just gave an example that if the company maintains accounts say on Tally and you want to audit say purchase transaction and you want to select a random sample - you would be hard pressed to get a truly random sample using Tally alone - to do this and other Data Analysis for audit you would need to import the data into excel (Tally is ODBC compliant hence with Tally running alongwith Excel you can import data to Excel using Data-Import Extenal Data Wizard ..... its self explanatory!).

Hope it helps.....

M (22 Points)
Replied 10 May 2007

thanks, it will help me a lot.

theone (55 Points)
Replied 10 May 2007

The One Says:

Let me know how it goes and post your reply and further queries here ........

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Gkamal (13 Points)
Replied 10 May 2007

Tally has come out with a audit tool called SOFTCAT which essentially has all the features required to extract data, obtain samples for substantive tests, etc., you could use this tool. It is very useful.