- Auditing Tutorial
- Auditing - Home
- Auditing - Introduction
- Detection and Prevention of Fraud
- Detection and Prevention of Errors
- Auditing - Basic Principles
- Auditing - Advantages
- Auditing - Limitations
- Auditing - Classifications
- Preparation before an Audit
- Auditing - Audit Planning
- Auditing - Audit Program
- Examples of Audit Program
- Modification of Audit Program
- Methods of Audit
- Duties of Audit Staff
- Auditing - Audit Evidence
- Auditing - Types of Evidence
- Auditing - Audit Techniques
- Auditing - Internal Control
- Auditing - Internal Check
- Internal Check and Auditor
- Auditing - Internal Audit
- Auditing - Audit Sampling
- Auditing - Audit Vouching
- Auditing - Mechanized Accounting
- Auditing - Trading Transactions
- Vouching of Cash Transactions
- Auditing - Vouching of Ledger
- Auditing - Audit Verification
- Depreciation, Reserves & Provision
- Auditing - Capital and Revenue
- Auditing - Audit of Hospitals
- Audit of Educational Institutions
- Audit of Charitable Institutions
- Audit of Clubs & Theatre
- Audit of Sole Proprietary Concern
- Audit of Partnership Firms
- Auditing - Audit of Doctors
- Audit of Electricity Supply Company
- Audit of Shipping Company
- Audit of Co-Operative Societies
- Auditing - Audit of Hotels
- Auditing - Management Audit
- Auditing - Tax Audit
- Auditing Useful Resources
- Auditing - Quick Guide
- Auditing - Useful Resources
- Auditing - Discussion
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 reduced.
- 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 minimized.
- 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 results.
- 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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