Mechanized auditing

A lot of steps were engaged in recording the accounting transactions in the conventional manual system of accounting. A huge amount of information can be fetched in very less time in the present-day business scenario without spending a lot of workforce and resources. Thus, the labor of recording and presenting accounting transactions are performed by diverse machines. Accounting through computers is more preferred over the manual system of accounting. The procedures including different steps are followed in mechanized accounting. Before the individuals were assigned specifically in order to perform work but with time, machines such as computers have taken their place. These machines can do their work more efficiently in less time as compared to the staff members. Therefore, it reduces the labor cost and is a one- time investment in this purpose. The work is completed in less time due to these various machines. The technical methods are preferred over the traditional system of accounting. This makes the process more effective and economically beneficial and the time span for the completion of the work is minimized.


Advantages of mechanized accounting

  • It conserves time and expenditure in verifying accounting transactions
  • The chances of errors are less due to the extremely efficient work of the machines
  • It boosts the speed of work and helps to complete it in less time
  • Accounting through machines is precise and comprehensible
  • Ultimate accounts can be primed anytime without any delay
  • Outflow of internal control system and internal check can be minimized
  • Effortless accessibility of desired number of copies of any record
  • Previous year’s data and record can be replicated without any delay in the desired form

Disadvantages of mechanized accounting

The limitations of the mechanized accounting are the following-

  • Incorrect results are created due to wrong punching of data at early stage which results in the failure of mechanised accounting
  • The court do not recognize the loose cards and sheets maintained under it
  • It is very complicated to place and rectify error in it

Mechanized auditing and auditor

While conducting the audit of mechanized accounting records, the following points are measured by an auditor-

  • He should substantiate original data punching
  • Inspection of internal control system is very necessary
  • He should ensure that authentic and authorized accounting transactions shall be recorded
  • He should acquire description, if any, required in any entry
  • He needs certificate whether machines are in order and working accurately or not


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