system audit checklist

System Audits Services in India 

Tax Robo helps in formulating a system audit framework and allows you to implement a system audit checklist for effective Decision-Making. 

System audit services tailored for information technology (IT) companies focus on evaluating the effectiveness, security, and compliance of their IT systems and infrastructure


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System Audits 

System audits conducted for information technology (IT) companies under the Sarbanes-Oxley Act (SOX) and US Generally Accepted Accounting Principles (GAAP) encompass a range of services, scopes, and methodologies to ensure compliance with regulatory requirements and financial reporting standards. 

  • Internal Control Evaluation: Assessment of internal controls over financial reporting (ICFR) to ensure accuracy, reliability, and completeness of financial statements. 

  • IT General Controls (ITGC) Review: Evaluation of ITGCs, including access controls, change management, system development, and IT operations, to mitigate risks related to financial reporting.

  • Segregation of Duties (SoD) Analysis: Identification and mitigation of conflicts of interest or separation of duties issues within IT systems to prevent fraud or errors in financial reporting.

  • System Implementation Review: Examination of new system implementations, upgrades, or modifications to ensure compliance with GAAP and SOX requirements, including data integrity, system security, and controls implementation.

  • IT Compliance Assessment: Verification of compliance with relevant regulations, such as SOX Section 404, COSO framework, PCAOB standards, and SEC regulations governing financial reporting.


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Important Audit Services


Internal Audit Services

Stock Audits

Fixed Assets Audits

Frame Internal Control

Analysis of Debtors & Creditors

Scope of System Audit Services 

 

✓ Review of IT systems and processes that impact financial reporting, including enterprise resource planning (ERP) systems, financial applications, and supporting infrastructure.

✓ Evaluation of controls related to data accuracy, completeness, and validity, including data input, processing, and output.

✓ Assessment of IT security controls, including user access management, logical access controls, encryption, and data protection measures.

✓ Examination of IT governance practices, including IT policies, procedures, and organizational structure, to ensure alignment with regulatory requirements and industry best practices.

✓ Testing of controls related to system changes, including program development, software deployment, and configuration management, to prevent unauthorized changes and ensure system integrity.


Methodologies and Frameworks  

✓    COSO Framework: Adhering to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework for internal control assessment, including the COSO Integrated Framework and COSO Enterprise Risk Management Framework.

✓   COBIT Framework: Referencing the Control Objectives for Information and Related Technologies (COBIT) framework for IT governance, risk management, and control assessment.

✓   Auditing Standards: Compliance with auditing standards issued by the Public Company Accounting Oversight Board (PCAOB), American Institute of Certified Public Accountants (AICPA), and Securities and Exchange Commission (SEC), including PCAOB Auditing Standard No. 5 (AS5) and AICPA's Statement on Auditing Standards (SAS). 

✓   IT Control Testing: Conducting substantive testing and walkthroughs to assess the design and operating effectiveness of IT controls over financial reporting.

How it Works 

Stage 1

✓ You fill out the inquiry form.

✓ The client relations team calls or emails you.

Stage 2


✓ Understanding of requirements.
✓ Ballpark estimate (if possible).
✓ Proposal (if required).
✓ Approval to go ahead.

Stage 3


✓ Confirm pricing
✓ Contracting & SLA sign-off

Stage 4  


✓ Resource deployment & training ✓ Project kick-off meeting

Stage 5


✓ Project execution & management

✓ On-going reporting & feedback

Stage 6


✓ Work delivery to the client

✓ Client feedback and review

Compliances of Statutes

  • TDS Compliances
  • Services Tax Compliances
  • PF & ESI Compliances
  • Professional Tax Compliances
  • Income Tax Compliances
  • Others Statutory Compliances

Fixed Asset Controls

  • Fixed Asset Accounting
  • Fixed Asset register Maintenance – with Location
  • Asset Deletion Accounting & Recognition
  • Insurance details for Fixed Asset



Analysis of Various general Ledger Transactions and Balances

  • Setup a Internal Controls Systems for smoothening the functions
  • MIS Reports for Managements
  • Collections and Follow-ups in Excel data Sheet
  • Budgetary Controls
  • Documents Maintenance Controls and Supports

Tax Robo Team and Process

  • Surprise Verification
  • Associated Firms In Tamilnadu
  • Strength Is Our Branches

Various Internal Controls


Preventive Controls

Segregation Of Duties: Duties Are Segregated Among Different People To Reduce The Risk Of Error Or Inappropriate Action. Normally, Responsibilities For Authorizing Transactions (Approval), Recording Transactions (Accounting) And Handling The Related Asset (Custody) Are Divided.

Approvals, Authorizations, And Verifications: Management Authorizes Employees To Perform Certain Activities And To Execute Certain Transactions Within Limited Parameters. In Addition, Management Specifies Those Activities Or Transactions That Need Supervisory Approval Before They Are Performed Or Executed By Employees. A Supervisor's Approval (Manual Or Electronic) Implies That He Or She Has Verified And Validated That The Activity Or Transaction Conforms To Established Policies And Procedures.

Security Of Assets (Preventive And Detective): Access To Equipment, Inventories, Securities, Cash And Other Assets Is Restricted. Assets Are Periodically Counted And Compared To Amounts Shown On Control Records.

Detective Controls

Detective Controls Are Designed To Find Errors Or Irregularities After They Have Occurred. Examples Of Detective Controls Are:

  • Reviews of Performance: Management compares information about current performance to budgets, forecasts, prior periods, or other benchmarks to measure the extent to which goals and objectives are being achieved and to identify unexpected results or unusual conditions that require follow-up.
  • Reconciliations: An employee relates different sets of data to one another, identifies and investigates differences, and takes corrective action, when necessary.
  • Physical Inventories
  • Audits