An IT audit, in the sense used here, is a review of the information systems on which the books rest. For most entities in Gorakhpur, Basti and Ayodhya that is Tally Prime or a similar package, sometimes with a GST or e-invoicing add-on, a weighbridge feed, or a hotel property-management system. The question is whether the numbers that reach the financial statements can be trusted given how the software is configured and used.
Typical scope
- User list, passwords, abandoned logins, and whether the proprietor’s ID is shared at the counter.
- Maker-checker on payment vouchers and journal entries.
- Audit trail / edit log: is it on, can it be turned off, who has turned it off.
- Backups: where they sit, whether they are tested, whether they leave the building.
- GST and e-invoice integrations: whether invoices can be raised outside the books.
- Excel and side books that actually run the business — a frequent finding in mills and hotels.
See also Audit trail in accounting software.
Frequently asked
Is an audit trail compulsory in Tally?
Companies required to maintain books under the Companies Act must use accounting software which has an audit trail that cannot be disabled, with the trail retained. MCA has notified the requirement in stages. Non-company entities should still enable it; tax officers now ask for edit logs when they examine books.