Tally Audit Feature for Reviewing Changes in Entries in Tally Prime

The Audit feature in Tally Prime plays a vital role in tracking and reviewing changes made to entries and transactions within the system. It helps ensure data integrity, security, and transparency by providing a clear audit trail for every alteration in financial records. In this article, we will guide you step by step on how to use the Tally Audit feature to review changes in entries.

Step 1: Opening Tally Prime

Start by opening Tally Prime. Upon logging in, you will see the Gateway of Tally screen where you can access your company data and other features.

Step 2: Enabling the Audit Feature

Before you can start reviewing changes made to entries, you need to enable the Audit feature in Tally Prime. Here’s how you can enable it:

1. From the Gateway of Tally screen, press Alt + F3 to access the Company Info menu.
2. Select Alter to modify company settings.
3. Under the Security Control section, select Audit Feature.
4. Set the Audit option to Yes.
5. Click Save to enable the Audit feature for your company.

Once enabled, Tally Prime will start recording changes made to vouchers, transactions, and other entries in your system, making them available for review in the Audit Trail.

Step 3: Accessing the Audit Trail Report

After enabling the Audit feature, you can access the Audit Trail report, which provides a detailed record of all changes made to transactions. To access the Audit Trail report:

1. Go to the Gateway of Tally screen.
2. Click on Display and then select Audit & Compliance.
3. Select Audit Trail from the list of options.
4. Specify the date range for which you want to review changes (e.g., from 01st January 2024 to 31st December 2024).
5. Click Show to generate the Audit Trail report.

The Audit Trail report will now display a list of all changes made within the specified period, including modifications to transactions and entries.

Step 4: Understanding the Audit Trail Report

The Audit Trail report in Tally Prime contains the following key details for each change:

• Voucher Number: The unique number of the altered transaction.
• Transaction Type: The type of the modified transaction, such as Payment, Receipt, Purchase, or Sales.
• Altered By: The name of the user who made the change.
• Date & Time: The exact date and time when the change was made.
• Original Value: The data or value before the change.
• Changed Value: The updated data or value after the change was made.

This detailed information helps you track every modification made to the transactions and ensures that all changes are transparent and can be reviewed for accuracy or fraud prevention.

Step 5: Reviewing Specific Changes in Transactions

To review specific changes in a transaction, locate the entry in the Audit Trail report. For example, if you need to check a change in a payment entry, follow these steps:

1. Open the Audit Trail report for the desired date range.
2. Locate the payment entry by filtering the Transaction Type or searching for the Voucher Number.
3. Click on the entry to view the details, including the original and changed values.
4. Verify the changes by comparing the Original Value and the Changed Value to ensure they are legitimate and accurate.

For example, if a payment voucher was modified, you can review the changes in the amount paid, the ledger affected, or any other modifications to the entry.

Step 6: Using the Audit Trail for Fraud Prevention

The Audit Trail is an essential tool for identifying potential fraudulent activities within your organization. By regularly reviewing the Audit Trail, you can ensure that all changes made to the financial records are legitimate and authorized. Here’s how you can use the Audit Trail for fraud prevention:

• Monitor for Unusual Activity: Keep an eye on changes made to critical transactions, such as large payments or journal entries, and ensure they are backed by proper authorization.
• Track Unauthorized Modifications: If you see modifications made by users who are not authorized to change certain entries, investigate the changes further.
• Cross-Verify Changes: Compare the Audit Trail with other documents like invoices, receipts, or purchase orders to ensure consistency and avoid any discrepancies.

By reviewing the Audit Trail regularly, you can detect and prevent fraudulent actions, ensuring the accuracy and security of your financial data.

Step 7: Modifying or Deleting Entries in Tally Prime

In some cases, you may need to modify or delete entries due to errors or other reasons. Tally Prime allows you to do this, but it will record every change in the Audit Trail. To modify or delete an entry:

1. Navigate to the transaction or voucher you wish to alter or delete.
2. If you want to modify the entry, select Alter and make the necessary changes.
3. If you want to delete the entry, select Delete.
4. Once the change or deletion is made, the modification will automatically be recorded in the Audit Trail for future reference.

For example, if a payment entry was recorded incorrectly, you can modify the amount and the ledger affected. This change will be logged in the Audit Trail with all relevant details.

Step 8: Generating Audit Reports for Review

In addition to the Audit Trail report, Tally Prime allows you to generate audit reports for a detailed review of user activity, changes, and potential discrepancies. To generate an audit report:

1. Go to the Gateway of Tally screen.
2. Click on Display and select Audit & Compliance.
3. Select User Activity or other available reports for a more comprehensive review of changes made by users.
4. Specify the date range and other criteria, then click Show to generate the report.

These reports can be filtered by user or date, making it easy to track changes over a specific period or by a particular user.

Step 9: Taking Action Based on Audit Findings

After reviewing the Audit Trail and reports, you may need to take action if you find any discrepancies or unauthorized changes. Possible actions include:

• Investigating the User: If a user has made unauthorized changes, investigate the issue and take corrective action, such as modifying their permissions or conducting disciplinary measures.
• Correcting the Errors: If there are mistakes in the data, correct the entries and ensure proper documentation is in place to prevent future errors.
• Reporting Issues: If fraudulent activity is suspected, report it to the necessary authorities and take appropriate legal or internal actions.

By acting on the findings from the Audit Trail, you can ensure the security and accuracy of your financial records.

Conclusion

The Audit feature in Tally Prime is a powerful tool for reviewing changes in entries and tracking user activity. By enabling the Audit Trail and regularly reviewing it, you can maintain data integrity, prevent fraud, and ensure that all changes to financial records are legitimate and authorized. Following the steps outlined in this article will help you make the most of the Audit feature in Tally Prime and keep your financial data secure and transparent.