Auditing Mechanized Accounting – tryspring

By | June 16, 2019

Auditing – Mechanized Accounting

In the traditional manual system of accounting, a lot of steps
were involved in recording the Accounting transactions. In the
present day business scenario a lot of information can be fetched
in very less time, without spending a lot of workforce and
resources. Therefore, various machines are doing the work of
recording and presenting accounting transactions.

Advantages of Mechanized Accounting

  • It saves time and cost in recording accounting transactions.
  • Machines works very efficiently, hence chances of errors are
  • It enhances speed of work.
  • Accounting through machines is neat and legible.
  • Without any delay final accounts can be prepared any time.
  • Cost of internal control system and Internal Check can be
  • Desired number of copies of any record is easily available.
  • Past year’s data and record can be reproduced in desired form
    without any delay.

Disadvantages of Mechanized Accounting

Mechanized Accounting comes with its own set of disadvantages. A
few of them have been mentioned below −

  • Wrong punching of data at initial stage will produce wrong
  • Loose cards and sheets maintained under it are not acceptable
    by court.
  • It is very difficult to locate and rectify error in it.

Mechanized Accounting and Auditor

An Auditor should consider the following points while conducting
audit of mechanized accounting records −

  • He must verify original data punching.
  • Scrutiny of internal control system is must.
  • He must ensure that actual and authorized accounting
    transactions shall be recorded.
  • He must obtain explanation, if any, required in any entry.
  • He requires certificate whether machines are in order and
    working properly or not.

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