Finance and Accounts General Analytics – Internal Audit

 






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.

 

 ALSO READ Order to Cash Analytics https://commercejob5.blogspot.com/2021/09/order-to-cash-o2c-analytics-internal.html

 

·        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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