New audit data standard addresses inventory subledger

Standardizing data can improve efficiency of the audit process.

A new audit data standard issued by the AICPA Assurance Services Executive Committee (ASEC) addresses the inventory subledger and is intended to accommodate basic analysis of the inventory process.

Through its Emerging Assurance Technologies Task Force, ASEC is developing audit data standards designed to make the acquisition of data more efficient and effective through standardization of the format for fields and files commonly requested for audits and other purposes.

Although use of the audit data standards is voluntary, public and private companies can benefit from applying them. Standardizing the data that auditors regularly request allows companies to replicate the information request process, reducing the time and effort needed to provide data to auditors.

Companies also can analyze the standardized data for internal purposes, and external auditors can more easily perform enhanced data analytics on data that are standardized.

The inventory subledger standard is designed to help auditors acquire the data that they need to perform their analysis as part of an audit. The new standard should be used in conjunction with the base standard for audit data standards, which was developed in 2015.

SPONSORED REPORT

Building client loyalty with payroll services

In this report, CPA experts detail their tactics for performing successful payroll services, how to mitigate risk in the process, and the impact payroll can have as a value-added service.

PODCAST

Using drones to enhance audits

Hermann Sidhu, CPA, global assurance digital leader at EY, walks us through EY’s exciting new project to use drones to help audit large warehouses and outdoor inventories.