Tally ERP 9 Audit Tools

USING TALLY

The following are the various features that can be utilised for Tax Audit, Company Audit, Transfer Pricing Audit and VAT Audit

Data Entry

Before data entry create Company, activate the features, and configure the tally for using your data entry and reporting

Activate multi currency option if you have transactions in foreign currencies.

The success of using the various features will depend upon the accuracy of data entry made.

Never pass consolidated entry like depreciation, petty cash payment, bank payment or receipts

The reason being it will give reports which C.A.’s mind will not accept

Open Ledger account which will give its features and flavour of its character

Select an appropriate group for the account and change the group from time to time on change in debit or credit balance change.

Activate required stock features to have quantitative reports

Enter from time to time the Bank statement in tally to have bank reconciliation missing entries.

VAT TRANSACTIONS

 See that VAT option is activated in your tally and enter your TIN and effective date

See that the accounts are created in purchase, sales, expenses, fixed assets transactions considering VAT set off rules

 Foreign Exchange Transactions

Enter the Import bills in foreign exchange

Enter the Export Bills in foreign exchange

Enter the Receipts in foreign exchange

Enter the payments in foreign exchange

Stock Valuation

Tally has got in built stock valuation features

You can value stock by any method regularly followed and accurate entries are made for purchase and sales transactions

Otherwise you can dis-integrate the stock and value as per your own working too.

Interest Calculation

Activate in features and

Activation while creating a ledger account or latter on as per your requirement.

Provide the rate of interest

Mode of calculation i.e. month or 365 days and advance features are available

Foreign Exchange Difference

When there are two currencies active the Balance sheet will show unadjusted foreign gain or loss for which entries are to be made periodically if not made at the time of settlement of transaction.

Amount in asset side shows loss and gain on liability side

Reporting in Tally

Apart from Statement of affairs and Profit and loss/ Income and Expenditure account, Books of Accounts, Inventory registers, stock statement the following additional reports can be generated

Statements in Rupees and Foreign Currency

 Quantitative statements for 3CD

 Stock valuation by using earlier years method and current years method of stock valuation

Payment above Rs.20,000/-

Payment/Bills above Rs.5,000/-, 20,000/- or consolidated Rs.50,000/- for TDS purposes

Maximum balance outstanding during the year for loans etc.

Delayed payment of TDS, PF, ESIC, Profession Tax etc.

40A(2)(b) reports

Negative Cash balance

Checking interest payments and receipts

Reports under TP Audit

Sales to Associated Enterprises

Purchase from Associated Enterprises

Gross Profit ratio of transactions with AE and others

Company Audits

Transaction above certain limit with parties listed in register u/s 301 of the Companies Act, 1956

Provident Fund and ESIC payment verification

Fixed Assets Register

Inventory records in Notes to Accounts

Debts more than six months

Segment reporting

Region

Product

Etc.

Duplicate payments and Duplicate Bills

Ledger Scrutiny

Audit papers and audit trail

 MIS Reporting

Over due payments

Highest and lowest Cash balance and Bank balance for utilisation of fund

Stock reports

Export of data in XL and ODBC

For further analysis and reporting

There are certain package data of which is compatible with tally data base and can be imported in tally i.e. sales affected at certain counters can be merged in tally.

And there are various agencies, they give additional features and packages compatible with tally so tally can be used as ERP package.