Question

why is it important to have software vendors (such as SAP, Oracle,etc.) use the audit data standards?

Answer 1

Due to increase in fraudulent activities and fraud in accounting transactions, Accounting standards are updated and become more effective and efficient. As companies want proper financial statements and audit procedure, Companies use proper computer accounting softwares to reduce mistakes while recording, classifying and summarising.

Computer accounting softwares like SAP, Oracle etc are very important for todays changing business environment. As in today's business various transaction takes place where recording it traditionally can create problems like mistake while recording etc. So, for proper functioning of accounting system softwares like SAP, Oracle are used.

• IMPORTANCE OF SOFTWARE VENDORS IN AUDIT DATA STANDARDS:-

1. It helps in recording data with proper principles, and standards. By doing it, it helps business to reach the audit standard.
2. It helps to check and give error immediately after recording all transactions.
3. By recording all transactions correctly, it increases the transparency of data which leads to proper auditing.
4. It helps to check by ourself first, whether it is correct or not so that the public auditor can audit all the data properly.
5. With the help of software, it helps businesses to meet the standards of auditing.