The new dimension of accounting-monitoring
Hearing the word „Monitoring” can cause stressful moments for many accountants and financial managers. There is also inner monitoring. The management gathers information, the owners want to be convinced about the reality of the given datas from the auditors and the state is looking for mistakes by the help of the National Tax and Customs Administration. You can think that these several kinds of monitoring must be proper and general, so nothing can be hidden. But knowing the accountancy, the reality is very different.
While accountancy is getting more and more complex, the monitoring methods and procedures have stayed at a statistical level (sampling and conclusion). The trouble of accountancy is shown by many problems. Auditors cannot see neither financial incidences generally or the headings registering these incidences generally or as a part of the process. So mistakes stay hidden, although finding and solving these mistakes is more important now than ever because a counting information is valuable only, if it is real and current.
What kind of mistakes can we speak about?
- Accidental mistakes (mistypings).
- Mistakes principled, proceeded from professional deficiencies.
- „Creative” accountancy. Breaking the rules intentionally so you get a result fully different from reality (loss or profit) according to the management’s intention.
- Cheating on the certificates. A profit-and-loss account influenced by false or non-existing certificates.
Although in the first two cases vouchers can be helpful in indentifying mistakes, in the 3rd and 4th cases it is clear that monitoring based on vouchers can be interpretable. But the practise today – on the parts of both auditors and state – is basing only on monitoring vouchers. It is clear now that a new aspect and a new method are needed. Instead of the original method based on statistics (sampling and guessing) a new method based on Mathematics and IT should be used to clear up every mistake.
Recognising these problems a developing group from counting experts created the program AuditPrime as a result of 14 years research work. This software searches and shows the mistakes of accountancy by the help of analytical methods and connection monitoring.
What are the characteristics of the AuditPrime?
- Procedure aspect. Financial incidences cannot be rated according to vouchers. You cannot be sure that everything has been booked or it was made according to the rules of accountancy. AuditPrime assembles the accountancy process clarified to every partner each, it clears up and shows the logical connection among the financial incidences.
- Systematical aspect. Connecting the financial incidences is indispensable to the effective monitoring. The items must be connected in a logical way to make coherency clear and to find out promiscuous mistakes.
- Gapless, it is a 100% monitoring. It means that monitoring is not based on sampling but is spread on checking the items fully. This system based on Mathematics and IT has a unique effectiveness and efficiency.
- Practical. Compared to original monitoring AuditPrime is exceptionally quick and can be used from afar, because it works from a counting data file special set. The program checks every item and can explore the four types of mistakes.
You can see how many advantages the usage of Auditprime has. But the most important thing to mention is believableness, so the user of AuditPrime should not be afraid of unknown mistakes, which will be found by the National Tax and Customs Administration or by accountants, while monitoring the company.
The National Tax and Customs Administration is one of the user of AuditPrime since 2014, which will make the clarification of accidental or intentional mistakes more effective. So companies should be ready and should preclude this kind of monitoring.