Audit Check List
MDA Audit Tool performs a variety of checks and procedures on the data and as a result generates discrepancies and reports for the user.
Sales
- Debtor Accounts with credit balances.
- Debtor Accounts with no entries of sales.
- Accounts having entries of sales but not classified as debtors.
- Debtors- more than 6 months old.
- Debtor accounts having no GSTIN.
- Cash/Bank payments made to debtors.
Purchases
- Creditor Accounts with debit balances.
- Creditor Accounts with no entries of purchases.
- Accounts having entries of purchases but not classified as creditors.
- Creditors – more than 6 months old.
- Creditors – more than 1 year old.
- Creditor accounts having no GSTIN.
- Cash/Bank receipts from creditors.
Cash
- Cash Payment above Rs. 10,000.
- Cash Receipt above Rs. 2,00,000.
- Accounts which may be hit u/s 269ST.
- Negative cash balance during the year.
- Highest cash balance during the year.
- Lowest cash balance during the year.
- Highest no. of cash entries posted during the year (in a day).
- Average cash balance during the year.
Bank
- Highest bank balance during the year.
- Lowest bank balance during the year.
- Highest no. of bank entries posted during the year (in a day).
- Average bank balance during the year.
Benford's Law Analysis
Benford's law, is an observation about the frequency distribution of leading digits in many
real-life sets of numerical data. The law states that in many naturally occurring collections of
numbers, the leading significant digit is likely to be small. For example, in sets that obey the
law, the number 1 appears as the leading significant digit about 30% of the time, while 9
appears as the leading significant digit less than 5% of the time. If the digits were distributed
uniformly, they would each occur about 11.1% of the time. This law can also be used in fraud
detection based on the plausible assumption that people who fabricate figures tend to
distribute their digits fairly uniformly, a simple comparison of first-digit frequency
distribution from the data with the expected distribution according to Benford's Law ought
to show up any anomalous results. The software allows the users to choose the accounts on
which they want to apply the Benford's Law.
GST Reconciliation
The software provides a comparison of the data with the GSTR 2A files as downloaded from
the GST website. The GSTIN, Taxable Value, CGST, SGST, IGST accounts are used as the basis
for comparison and any deviation is reported. This report is extremely helpful to calculate
the credit as per the books and credit as recorded in the GST Returns.
Expense Accounts
A report of all the expense accounts is generated by the software to enable month wise
comparison to the user.
Income Accounts
A report of all the income accounts is generated by the software to enable month wise
comparison to the user.
Others
- Opening Trial Balance matched with previous year's Trial Balance.
- Entries posted on holidays.
- Entries posted on weekly off.
- Accounts squared up during the year.
- Accounts with same opening & closing balance (with transactions during the year).
- Accounts with same opening & closing balance (with no transactions during the year).
- Fixed Assets with credit balance.
A detailed report of Unsecured Loans U/s 269SS and 269T as required to be reported in the
Form 3CD.
Single or multiple ledgers are available for the user in a single report as and when
required.
The MDA Audit Tool prepares a summary report from the data imported which can be used
as a working paper for the audit file. This is a summary of the no. of groups, vouchers
(further classified into types), no. of accounts in the data, no. of debit notes, credit notes, etc.
This can be used to state the no. of records on which audit has
The software can be used to report the closing trial balance of the client as well.