ACCOUNTING INFORMATION SYSTEM

THE DIGITAL AUDIT TRAIL AND DOCUMENTAION TECHNIQUES

ARISTELA, JAYPEE JOHN Q.
E-31 / TTHS/ 10 PM – 11 PM
MR. PILAR, MARCIAL R.

Conclusion
The coverage of my report is all about the digital audit trail and documentation techniques
wherein the digital audit trail is being compared to paper trail and different documentation technique is
discussed. The accounting records described previously provide an audit trail for tracing transactions
from source documents to the financial statements.

There are steps in conducting a digital audit trail, first is to record sales manually on source
documents just like in the manual system. The next step is to convert the source documents to digital
form, some computer systems do not use physical source documents but they rather captured the
transactions directly on digital media. The next step is to update the various master file subsidiaries
and control accounts that the transaction affects. During the update procedure, additional editing of
transaction takes place. Some transactions may prove to be in error or invalid for such reasons as
incorrect account numbers, insufficient qualities on hand or customer credit problems. The remaining
good records are used to update the master file.

In the audit trail process, the auditor conducts an audit trail to trace transactions if the records
are being recorded correctly and defect fraud if ever there is an intentional false representation of
data. If an auditor wants to trace the Accounts receivable account amount then go to master files and
check the General Ledger Control account for accounts receivable then check the journal entries and
sales orders.

Let’s move on to the different documentation techniques that are discussed in my report, they
said that a picture is worth a thousand words and it is very evident when it comes to documenting
systems. In this topic, I realized and became aware that nowadays many companies are innovating
their system and adapting the documentation technique to make their transaction smoother and more
efficient. I gained knowledge that the system analyst uses DFDs extensively to represent the logical
elements of a system.

I had so many learning’s about this topic not just about the system but also how accounting
records are done and what is the importance of an audit trail as part of the auditing process. My
conclusion is that to have an effective and efficient accounting information system an entity or a
company have to innovate their system and acquire different techniques to stay in the industry. I
therefore conclude that audit trail have to be studied in order for someone like us future CPA’s or
auditors became ready when we enter the real world and be job ready.