Hi everyone, as a continuation of the previous article on analytics
in P2P process and Order to Cash process, I am here to present you the same
kind of analysis that can be performed in the area of finance and accounts.
·
To check if
there are any duplicate GLs in master data
o
To check the list of potential duplicate GLs from
the master data based on same or similar account descriptions
·
Negative
balances in ledger accounts
o
List down the general ledger accounts which have
negative balances
·
To check if
there are any inactive GLs in the chart of accounts
o
Check whether there were any inactive accounts,
where the transactions were not recorded during the period
·
To check if
there is significant movement in balance to respective GL account
o
Check whether there were significant movement in
balance to respective GL based on the condition – Difference in closing balance
of previous FY and current FY
·
Recording of
duplicate entries
o
Identify any duplicate journal entries by comparing
the same account and amount (Same account [GL code] + same amount)
o
Identify any duplicate journal entries by comparing
the same journal entry number and amount (same account [GL code] + same amount
+ same narration / description)
·
To check on the
potential bogus entries
o
Journal entries (Basic amount in INR) ending with ‘999
o
Journal entries (Basic amount in INR) ending with ‘000
·
Suspicious
weekend or holiday journal entries
o
Analyse any or all journal entries created / posted
on unusual dates such as weekend (Saturday / Sunday) or holiday.
·
Backdating of
entries
o
Check whether there were any significant backdating
of journal entries based on the following conditions – difference in entry date
and posting date
·
To check for
negative cash balance during the period
o
List of days when the closing balance of cash on
hand account is negative
·
In active or non-operative
bank accounts
o
Check for in active bank accounts based on
utilisation of the bank accounts
·
To check if
there is any cheque issued against the bank having insufficient funds
o
Check for any instances where the cheque issued to
the creditor were returned due to insufficiency of funds with the following
conditions – use a key word “insufficient fund” in the bank statement to
identify the list of cheques returned back due to insufficiency of funds
·
To check for entries
pertaining to prior period / entries not pertaining to the audit period
o
To check for entries pertaining to prior period /
entries not pertaining to the audit period
ALSO READ Order to Cash Analytics https://commercejob5.blogspot.com/2021/09/order-to-cash-o2c-analytics-internal.html
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