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Statutory Audit (India)

Tally.ERP 9 provides a comprehensive tool to perform the statutory audit in a systematic process. The tool provides step-by-step approach to conduct an audit on the given data in the fastest possible manner. The primary objective of Tally.ERP 9's Statutory Audit features is to ensure that the financial statements (such as Balance Sheet, Profit & Loss Account and so on.) provides a true and fair view of the company’s financial records. As per the Companies Act, it is mandatory for all the registered companies to get their Books of Accounts audited by the practicing Chartered Accountants.

Statutory Audit feature in Tally.ERP 9 enables the Auditor to analyse the Company Data using the Data Analysis tools available to form an opinion as to the true and fair view of accounts by highlighting the exceptions. The tools helps in comparing the company data spread across two financial years in the same company or in a different (split) company. With Tally.ERP 9's Statutory Audit tools, you can:

● Create and maintain an Audit Programme .

● Prepare and maintain Audit Working Papers .

● Mark the applicable and complied Accounting Standards and Audit and Assurance Standards for a company.

● Extract the financial information required for statutory audit.

● View relevant data in the required form for analysis.

● Analyse data by comparing it with previous year's data.

● Audit vouchers along with instant statistics.

● Track and audit the Related Party, MSME and Forex transactions.

● Apply various Sampling Methods.

● Audit and interact with the Client remotely.

● Generate the following Financial Statements as per the format specified in Companies Act:

o Schedule VI Balance Sheet.

o Schedule VI Statement of Profit and Loss.

● Track the post-audit changes, if any.

Tally.ERP 9 provides the following tools for data analysis:

1. Verification of Chart of Accounts

2. Verification of Stock Items

3. Verification of Balances

4. Analytical Procedures

5. Pending Documents

6. Statutory Payments

7. Periodic Payments and Receipts

8. Repeated Transactions

9. Relative Size Factor (RSF)

10. Other Analysis

● Inter Bank Transactions

● Cash Withdrawals /Deposits to bank

● Fixed Assets Analysis

● Transactions on Holiday

● Highest and Lowest Value Transactions

● Pending Advances

● Stale Cheques/Instruments

● External Confirmation (Third Party Confirmation)

● Account Reconciliation

The Auditor can analyse the company data using the above tools and then audit the vouchers from the auditing section through the following features:

● Verification of Vouchers

● Related Party Transactions

● Forex Transactions

● Micro, Small, Medium Enterprises (MSME) Transactions

● Salary/Wages Payments

The auditor can also apply Sampling Method wherever required to audit only relevant Vouchers.

The Statutory Audit tool will also help in generating the Financial Statements listed below:

● Schedule-VI Balance Sheet

● Schedule-VI Profit and Loss Statement

Note: For simplification of understanding the following terminology will be used for Statutory Audit:

♦ Audit Year - Year for which Audit is happening. This can also be referred as the Current Period.

♦ Previous Year - Year prior to the Audit Year.

For example , if Audit is happening for 2008-2009 then 2007-2008 will be Previous Year.

In addition to the above, Tally.ERP 9 also provides the facility to create the Audit Programme consisting of detailed checklist with other required details.