Tally ERP 9 Auditor’s Edition for CAs

Syncing with Tally.ERP 9 installed at your clients’ offices, this unique product can improve your practice and streamline your clients’ businesses. Increase your audit effectiveness with its advanced features like remote access, and boost opportunity by adding new services –like Continuous Compliance –to your portfolio.

Benefits at a glance

Audit Programme

Auditors can now plan pre-audit work in Tally.ERP 9 itself. The system creates a default checklist that will help the entire audit team conduct successful audits.

If an Audit Programme is similar for more than one Company, the contents can be copied from one Company to another at the click of a button. This can be later modified/customised.

In addition, capture time taken for Audit, the names of the audit staff for each audit area, scope of the Audit conducted and post-audit comments for each Audit area.
In addition, the Audit Programme facilitates the capturing of time taken for Audit, name of the audit staff for each audit area, scope of the Audit conducted and post-audit comments for each Audit area.

Highlights:

• Easy tracking of year-wise audit programme for each client
• Management of the scope of Audit
• Reduction of duplication of efforts
• Option to add user-defined areas of audit

Audit Working Papers

In an audit scenario, as per SA 230, Auditors have to manually record their comments and audit-related tasks along with their clients’ inputs supporting audit conclusions. This leads to a large numbers of documents to manage. The Audit Working Paper (AWP) feature in Tally.ERP 9 Auditors’ Edition eliminates this.

Keeping in mind the nature of the audit workflow, we have built enough flexibility into this feature to assist Auditors throughout the audit.

Highlights :

Flexibility of the feature
Auditors can copy verification or working notes provided for particular vouchers/ledgers to AWP. Tally also provides the flexibility of editing notes from within AWP or from the individual voucher/ledger.

Consolidated Audit Working Paper
AWP will have a complete list of notes (displayed category-wise) entered by Auditors along with response from their clients arranged chronologically.

Secured access to the Audit Working Paper
Auditors can control their audit team’s access to the Audit Working Paper based on actions to be performed (Alter, View, Print, All), or be the sole owners of the document.

Benefits :
• All audit related comments, observations, clarification and working notes are in single repository
• Eliminates the manual entry of comments/notes by Auditors & their clients
• It helps in Audit Documentation (SA 230) required for peer review
• Saves the need for storing and maintaining voluminous amount of working paper files
• A single document for tracking/proofing purpose even after the Audit is over
• Better clarity via a display of audit flow for individual transactions in AWP
• Controlled access to observations/comments

Analytical Procedures

Analytical Procedures in Tally.ERP 9 – Auditors’ Edition assists Auditors to perform 3-dimensional micro-analysis of clients’ data for a firm opinion on the financial statement’s consistency.

Examples of accounts that may be analysed in Tally.ERP 9 – Auditors’ Edition:

• Interest expense against interest bearing obligations
• Sales discounts and commissions against sales volume
• Analysis of Sales group with components of sales ledgers vis-a-vis, purchases, Direct & Indirect Expenses
• Analysis of Project tracking through Cost Centre

Highlights :

• Scope for comparing current year’s data with the previous year’s
• Variance Analysis
• Multiple Comparison with Groups, Ledgers and Cost Centres

Benefits :

• Unusual/unexpected relationships that are identified may bring out possibilities of material misstatement, especially risks due to discrepancies
• Usage of this report to decide further audit scope coverage

Multiple Sampling Methods

Tally.ERP 9 – Auditors’ Edition offers various sampling methods. These include All Vouchers, Amount Range, Even Numbered/Odd Numbered vouchers, Specific Period, Specific Vouchers, and a mathematical tool named Benford Analysis. An option to perform Manual Sampling by ear-marking specific transactions and further verifying them in detail, is also available.
Benford Analysis in Tally.ERP 9 – Auditors’ Edition: Based on Benford’s law, expected frequencies of all digits (1 to 9) in the first decimal place of a number are compared with the actual occurrences. The variations are displayed in a tabular format. Any digit can be chosen from the table to view all corresponding vouchers.

Benefits:

• Flexible sampling methods based on time, range, and value
• Sampling methods can be used at Group/Ledger/Voucher levels
• Benford Analysis method based on Benford’s Law
• Flexibility of drilling down to each voucher from a sampled data in the report
• Hand pick particular Ledger Vouchers to be verified at a later date by Manual Sampling

Highlights :

•Auditors can choose any sampling method based on nature and scope of Audit data
•Selectively pick Vouchers from any Ledger at random for further verification
•Sampling methods and functionalities in accordance & fulfillment as per Revised Audit Standard, SA 530 for substantive tests

Schedule VI Financial Statements

Tally.ERP 9 Auditors’ Edition provides Auditors with an option to generate Balance Sheet and Profit & Loss Financial Statements in Schedule VI formats at the click of a button.

Tally.ERP 9 Auditors’ Edition automatically gathers the data required to populate the Balance Sheet. This displays the balance details between the Sources of Funds and Application of Funds. The Profit & Loss A/c statement for a given period can be generated too.

Highlights of Balance Sheet :

• One-click report generation
• Default Tally Groups mapped to Schedule VI groups. Option to regroup without affecting default Tally Groups
• User-defined Schedule numbering along with notes to schedule
• Generate and print Schedule VI Balance Sheet with Signatories and Declarations
• Option to export into Excel

Highlights of Profit and Loss A/c Statement :

• Sales and Income groups are mapped to INCOME by default
• Expenses & Purchase Groups are mapped to EXPENDITURE
• Option to rename INCOME & EXPENDITURE is provided to support all industries
• Flexibility to regroup within INCOME & EXPENDITURE
• Flexible Schedule numbering along with notes to schedule
• Export to Excel for further formatting if required

Verification of Opening Balancecs

In Tally.ERP – Auditors’ Edition, the Verification of Balance feature compares the Closing Trial Balance as on 31st March of the Previous Year with the Opening Trial Balance as on 1st April of the Current Financial Year.

Highlights:

• Auditors can:
– Verify Balances for Ledgers
– Check Ledger Balance Variance
– Provide Verification Notes for the Variances
• Difference between Opening and Closing Balances highlighted in red for immediate attention
• Scrutinise individual Ledgers and
– Check Bill-Wise details of a transaction
– Do a Daily-breakup of Opening/Closing Balances and track changes

Benefits:

• Single click report to analyse balance verification
• One-click report giving details on General Ledger Scrutiny & Balance variances for each Group/Ledger
• Saves time while conducting Balances verification and variance analysis

Repeated Transactions Report

The Repeated Transactions report displays all vouchers of a Ledger where an amount is repeated. The report will help to spot unusual behaviour in transactions, with the option to further configure the report.

Benefits:
• Easy to detect discrepancies
• Additional data analysis feature

Periodic Payments & Receipts

The Periodic Payments & Receipts report displays variations. These could be in terms of amount, Count of transactions, Percentage (%) along with negative variance in recurring transactions. Based on analysis from this report, year-end provisions and adjustment entries can be identified to be recorded by the Auditor.

Highlights :

• One click report of transactions done periodically under a particular ledger
• Configure required ledgers as periodic

Benefits :

• Easily find irregularities in transactions
• Transparency in transaction pattern across a period

Relative Size Factor Report

This feature highlights all unusual fluctuations in ledger entries. Known as the Relative Size Factor, it compares the highest value transaction to the second highest in each Ledger. The Factor can trigger further investigations to correct any errors/discrepancies, yielding a more precise audit.

Benefits :

• Immediate flagging of unusual fluctuations
• Quick spotting of data entry errors

Audit Journals

The Audit Journals enable an Auditor to pass transactions for Finalisation, Appropriation, Provisional, etc. for below-the-line items:

•Appropriation of Profit & Loss towards Provisions (Interim/Final Dividend)
•Taxes (Divided Tax, Income Tax)
•Reserves (General Reserve, Debenture Redemption)
•Capital (Redemption of Shares)
•Deferred Tax Liability
•Prior Period & Extraordinary items

Benefits :

• Close books of accounts by passing Audit Journal entries
• Ease accounting and tracking of year-end transactions

Import & Export of Audit Journal entries :

Auditors have the means to export audit journal entries in XML format from Tally.ERP 9 – Auditors’ Edition. This file can be later imported by clients to their Tally.ERP 9. This ensures a quick transfer of observational changes done by an Auditor for the client.

Benefits :

• Speeds up transfer of finalisation entries from Auditor to client
• Reduces manual and repetitive data entry
• Eliminates data entry errors
• Updates Books of Accounts with finalisation entries

Checklist of AS Compliance

This feature in Tally.ERP 9 –Auditors’ Edition lists all the accounting standards as per the Accounting Standards Board (ASB). Auditors can evaluate their clients’ adherence to various accounting parameters relevant to the business, easing compliance.

Benefits :
•Ready-to-update Accounting Standard checklist for Auditors
•Ease of tracking clients’ conformance
•Scope for Auditors to counsel their clients on adherence to AS

AAS Compliance

This feature in Tally.ERP 9 – Auditors’ Edition provides a complete list of Audit & Assurance Standards (AAS) used to measure the quality of audits performed. It also indicates the audit objectives achieved.

Benefits :

• Assists in increasing the quality of Audits
• Tracks achievement of audit objectives

Tax Audit

Form 3CD with AnnexureAfter conducting a Tax Audit in Tally.ERP 9 – Auditors’ Edition, print Form 3CD with Annexure from within the product. Available in the prescribed format, the report comes with a user-friendly option to copy the contents of the report from one financial year/company to another. The facility to copy a single clause from one company to another is also provided.

Benefits:
• Auditors can directly fill and print Form 3CD from within Tally.ERP 9 –Auditors’ Edition
• Ease of maintaining various clients’ and multiple financial year data

Form 3CA & Form 3CB:

Form 3CA and Form 3CB, which are to be submitted after the 44AB Audit along with Form 3CD, have been provided in Tally.ERP 9 – Auditors’ Edition.

This ensures all Forms & Reports of a particular client are stored along with the Company data. They can be easily retrieved for any future reference.

 

 

 

Form3CAForm3CB

 

 

 

 

 

 

 

Benefits:

• Client wise management of Tax Audit Information
• Easy to track in Tally

Everything you need to perform a comprehensive Statutory Audit

In addition to Tax audit and Statutory Compliance, the Auditors’ Edition of Tally.ERP 9 is a powerful tool to perform Statutory Audit. It enables Auditors to analyse the Books of Accounts, discover exceptions and highlight deviations.

Using it, Auditors can also generate Financial Statements like Balance Sheet and Profit & Loss Account as per Schedule VI, which need to be submitted to stakeholders as prescribed in Company’s act.

Highlights of Statutory Audit Tool

Data Analysis

Flexible and Quick Data Analysis

Data Analysis is performed using various Analysis tools which assist the auditor check the data, compare it with the previous year’s data and highlight exceptions. The auditor will also be able to carry out further investigations and fix the data if he/she has been provided the necessary rights.

Verification of Chart of Accounts: Using this feature, auditors can organise the Chart of Accounts in a presentable manner and highlight the exceptions by comparing with the previous year’s Chart of Accounts.
Verification of Stock Items: This report will assist the auditor in checking the available Stock Items. After comparison with the previous year’s Stock Items list, attention will be drawn to exceptional items such as negative stocks, difference in balances etc.

Verification of Balances: This will assist the auditor in checking the difference in Opening Balances and Transaction details, by highlighting the exceptions.

Analytical procedures: A powerful Data Analysis tool, this will help the auditor Compare various Groups/Ledgers/Cost Category/Cost Centres or cross compare these to draw various trends. This report will also provide the variance details among the selected factors to facilitate further investigation.

Pending Documents: This report will help the auditor decide the related areas of investigations and get the necessary pending Bills and Orders closed based on the actual situation.

Statutory Payments: This report will assist the auditor in discovering if the necessary Statutory payments were made on time or not.

Auditing

Precise, full-view Auditing

The Auditing section helps the auditor check and audit all the available transactions by applying the necessary sampling methods:

Verification of Vouchers: The auditor has an option to apply the recommended Sampling methods and do the Auditing for the Sampled Vouchers or audit all Vouchers.

Related party Transactions: The auditor can identify the Ledger Master as Related Parties based on the information given by the client. This makes all the transactions belonging to the Related Parties available for scrutiny.

ForEx Transactions: This report lists down all the transactions involving Multi Currency and provides the option to conduct Audit.

Outstanding from MSME (Micro, Small and Medium Enterprises): Auditor can check and audit the Outstanding Payments for the parties identified as MSMEs.

Salary / Wages Payments: Auditor can check the Headcount details and Salary Payment details for all the employees. An option to audit these transactions is provided.

Financial Statements

Comprehensive Financial Statements as per Schedule VI

Using Auditors’ Edition of Tally.ERP 9, the following Financial Statements can be prepared as per the Schedule VI requirements:

• Balance Sheet as per Schedule VI

• Profit & Loss A/c as per Schedule VI

All the default Tally Groups are mapped to the Schedule VI titles to generate the above Financial Statements. The tool provides the flexibility to the auditors to re-classify these Groups as per the requirement without affecting the client’s data.

Some of the salient features of Schedule VI Balance Sheet are:

• Can be generated with a single click
• Tally Default Groups (Business Groups) are mapped to Schedule VI groupings by default
• Can be further regrouped as required (user defined)
• Flexible Schedule numbering
• Generation of Schedules
• Export to Excel for further formatting if required

Some of the salient features of Schedule VI Profit & Loss A/c are:

• Sales & Income Groups are mapped to INCOME by default
• Expenses & Purchase Groups are mapped to EXPENDITURE
• Option to rename INCOME & EXPENDITURE is provided to support all industries
• Flexibility to regroup within INCOME & EXPENDITURE
• Flexible Schedule numbering
• Generation of Schedules
• Export to Excel for further formatting if required