Getting Started With Auditors Edition

Getting Started with Auditors’ Edition
of Tally.ERP 9
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Version: Getting Started with Auditors’ Edition of Tally.ERP 9/2.0/Aug 2010

Contents
Contents
Introduction ............................................................................................................................................................................. 1
Lesson 1: Creating Tally.NET Auditors

1.1 Creating Tally.NET Auditors .....................................................................................................................2
Lesson 2: Lesson 2: Auditing Scenarios in Tally.ERP 9

2.1 Audit at CA’s office by accessing local data ...........................................................................................6
2.2 Audit at Client’s place by accessing local data .......................................................................................9
2.3 Audit Remotely by accessing Client's data from anywhere ................................................................11
Lesson 3: Lesson 3: Tally.NET Overview

3.1 Configuring Tally.NET features ..............................................................................................................15
3.2 Authorise Tally.NET Auditors .................................................................................................................17
3.3 Create Security Controls ...........................................................................................................................19
3.4 Connect Company to Tally.NET for Remote Auditing .......................................................................22
Lesson 4: Lesson 4: Features of Auditors’ Edition

4.1 Tax Audit .....................................................................................................................................................25
4.1.1 Form 3CD ............................................................................................................................................. 28
4.2 Statutory Audit ...........................................................................................................................................29
4.2.1 Data Analysis ........................................................................................................................................ 29
4.2.2 Auditing ................................................................................................................................................. 30
4.2.3 Audit Journals ....................................................................................................................................... 31
4.2.4 Financial Statements: ........................................................................................................................... 33
Balance Sheet ........................................................................................................................................ 34
Profit & Loss Statement ........................................................................................................................ 37
4.3 Statutory Compliance ................................................................................................................................37
i
Introduction
Tally.ERP 9 offers a special Gold Auditors’ Edition, which provides Audit & Compliance capabili-
ties, exclusively for Chartered Accountants. The Auditors’ Edition provides the following tools for
Chartered Accountants:
 Tax Audit
 Statutory Audit
 Statutory Compliance
These tools will help in retrieving the relevant information and present them in the required form to
help the Auditor to form the opinion. Using Tally.ERP 9, Chartered Accountants can provide the
Audit and Compliance services to their clients in the following three scenarios:
 Audit at CA’s office by accessing local data

 Audit at Client’s place by accessing local data
 Audit Remotely by accessing Client’s data from anywhere
1
Lesson 1: Creating Tally.NET Auditors
On successful Activation of Tally.ERP 9 Auditors’ Edition, the Account ID/Email ID (main BAP
username) provided during the Activation process is configured as a Tally.NET Auditor (having the
Remote Audit & Compliance capabilities). The main BAP user can further create sub-users under
him and configure them as Tally.NET Auditors to perform Audit from any where.
1.1 Creating Tally.NET Auditors

Tally.NET Auditors can be created from Control Centre feature in Tally.ERP 9.
To create Tally.NET Auditors,
 Start Tally.ERP 9
 Click on K: Control Centre button in the top button toolbar or press CTRL+K keys
Figure 1.1 Tally.ERP 9 Startup screen
2
Creating Tally.NET Auditors
The Control Centre Login screen is displayed.

 Enter the Account ID/Email ID as it was entered during the License Activation in Your
Email ID field
 In Your Tally.NET Password field, enter the Account Password sent by e-mail to you
as shown:
The Account Password is Automatically generated during the Activation and

sent by e-mail to the Email ID provided. You can change the Password by
Logging into Control Centre.
Figure 1.2 Control Centre Login screen
 PressEnter to login
The Control Centre screen is displayed as shown:
Figure 1.3 Control Centre in Tally.ERP 9
3
From the Control Centre screen,

 Select U: User Management and press Enter
Figure 1.4 User Management screen
User Management screen displays the list of Tally.NET Users and Tally.NET Auditors created
by default.
To create more users, go to the next Line and execute the following steps:
 Select Standard User under Security Level field from Security Level drop down list
 Enter the required Email ID (e.g. bapuser1@tallysolutions.com) in the Tally.NET ID

field
 Set Tally.NET User field to No
 Set Tally.NET Auditor field to Yes
 Admin field will be skipped
 Set Status field to Active
4
Figure 1.5 Completed User Management screen
Security level: Default options are Standard and Owner. Standard User has limited
permission and he cannot change his settings or create new users. Owner has full
permission and he can create new users.
Tally.NET ID: A valid Email ID should be entered in this field.
Tally.NET User: This option should be set to Yes if you want the user to work as
Tally.NET User.
Tally.NET Auditor: This option should be set to Yes if you want the user to work as
Tally.NET Auditor and have access to Audit & Compliance features.
Status: The Status should be selected as Active for the user to work.
 Press Enter to save the User (Tally.NET Auditor). Similarly, you can create more users.
The Password for bapuser1@tallysolutions.com will be emailed to the

respective Email ID.
5
Lesson 2: Auditing Scenarios in Tally.ERP 9
Tally.ERP 9 provides auditing and compliance capabilities exclusively for Chartered Accountants
and makes the Audit and Compliance tools available in the following scenarios for the Chartered
Accountants:
 Audit at CA’s office by accessing local data
 Audit at the Client’s place by accessing local data
 Audit Remotely by accessing the Client’s data from anywhere
2.1 Audit at CA’s office by accessing local data
The Auditors’ Edition includes Audit & Compliance capabilities as a default feature without any
dependency on Tally.NET for Authentication. When the Client’s data is locally available at CA’s
office, the Auditor can perform the Audit or Verification as the Tax Audit, Statutory Audit and
Statutory Compliance features are available by default.
Go to Gateway of Tally > Alt+F3: Company Info. > Select Company

or
From Company Info. > Select Company
 Tally.ERP 9 displays the List of Companies along with the Company number
6
Auditing Scenarios in Tally.ERP 9
 Select the company to be audited and press Enter
Figure 2.1 Company selection screen
The Company Login screen is displayed as shown:
Figure 2.2 Company login screen
 Enter the User Name and Password provided by the Client.
If the Client’s company is not password protected, then you will have to make it
password protected by enabling the security feature in the Company Master.
(Gateway of Tally > Alt+F3 + Alter).
7
The completed Company Login screen is displayed as shown:
Figure 2.3 Completed Login screen
 Press Enter to Load the Company
Figure 2.4 Gateway of Tally (for Auditors’ Edition of Tally.ERP 9)
Tally.ERP 9 displays the Auditors’ License in the Information panel at the bottom of the screen
and the Audit & Compliance menu is available by default, when the Auditor accesses the client’s
data from his local machine (where Auditors’ Edition of Tally.ERP 9 is installed). The Auditor can
start using the Tax Audit, Statutory Audit and Statutory Compliance Tools.
8
2.2 Audit at Client’s place by accessing local data
When the Auditor wants to use the Auditors’ License from the Clients Office to provide the Audit or
Compliance Service, an Internet Connection and Tally.NET subscription are required. The Client
should have authorised the Chartered Accountant as a Tally.NET Auditor for the Company for
which Audit needs to be performed. For more details on the Authorisation process read the
chapter Tally.NET Overview.
In this scenario, Tally.NET is used to Authenticate the Auditor to get the Auditors’ License on the
Client’s Tally.ERP 9. The Auditor can then open the Company and perform Audit or Verification in
the same way as it is done in the Auditor’s office with Local data using the Auditor’s License.
The Auditor should have a valid Tally.NET subscription to perform Audit in this scenario.
To start the Audit, execute the following steps.
Go to Gateway of Tally > Company Info. > Select Company

 Tally.ERP 9 displays the List of Companies along with the Company number
Figure 2.5 List of Companies for Selection
 Select the company to be audited and press Enter
9
 Tally prompts for User Name and password
Figure 2.6 CA Login Screen
 Specify the CA User Name (Remote User Name) and Password, as explained in the ear-
lier chapter
Type tallybapuser@tallysolutions.com in the Name of the User field
Type the password in the Password field
Press Enter
The Gateway of Tally screen is displayed as shown:
Figure 2.7 Auditors’ Edition of Tally.ERP 9 (Remote Authentication)
10
Once the Chartered Accountant logs in using his authorised (BAP) user name and password,
Tally.ERP 9 displays the Remote Auditor Serial No along with the client’s Tally.ERP 9 license
Serial number. Auditors’ Edition is displayed under Edition in the Information Panel.
The Auditor can fetch the Auditors’ Edition License on Educational version of
Tally.ERP 9 also.
2.3 Audit Remotely by accessing Client's data from anywhere

When the Auditor wants to provide Audit and Compliance services from his office (or from any
other remote location) and access the Client’s Data Remotely, the internet connection and valid
Tally.NET subscription is a must for both the Auditor and the Client. The Client should have
authorized the Chartered Accountant as Tally.NET Auditor and Connect the Company to
Tally.NET at the time of Audit/Verification process. The Auditor will Login as Remote User and
provide the Auditor’s Username and Password to view the Companies that are available for
Audit (Connected) belonging to various Client’s based on the Access provided.
For information on Authorising the Remote Auditor and Connecting the Client Company to
Tally.NET, refer to Tally.NET Overview chapter.
The process of Remote Audit is as shown:

 Start Tally.ERP 9
 Go to Company Info. screen
11
Figure 2.8 Company Info screen
 Select Login as Remote User and press Enter
The Remote Login screen is displayed as shown:
Figure 2.9 Remote Login screen
In the Remote Login screen,

 Enter the BAP username in the Your Email ID field
 Enter the password in the Your Tally.NET Password field
12
The completed Remote Login screen is displayed as shown:
Figure 2.10 Completed Remote Login screen
 Press Enter to login Remotely
The Remote Company selection screen is displayed as shown:
Figure 2.11 Remote Company Selection screen
 Select the required Remote company and press Enter to Load the Company
The Remote Company selection screen displays the List of Remote Companies which have
authorised the Chartered Accountant to access from a Remote location.
13
On successful login, the Gateway of Tally screen is displayed as shown:
Figure 2.12 Gateway of Tally with Remote Login
You can view the Remote User details on the left side. The Information Panel displays the remote
Serial Number for the Auditor (BAP User). You can click on Audit & Compliance menu to start
experiencing the Power of Remote.
Remote Auditing can be performed successfully on the Educational Version of

Tally.ERP 9 also.
14
Lesson 3: Tally.NET Overview
Tally.NET (to be read as TallyNET) is an enabling framework which establishes a connection

through which the remote user (or Remote Auditor) can access the Client's data without copying /
transferring the data. Tally.NET is a default feature of the product and provides a host of capabili-
ties.
By default Tally.NET is enabled in Tally.ERP 9, however, certain configurations have to be setup to

get the company connected for the Remote Access. The following steps need to be executed at
the Client of the required Company:
1. Configuring Tally.NET features

2. Authorise Tally.NET Auditors’
3. Security Controls for Tally.NET Auditors’
4. Connect Company to Tally.NET for Remote Access
3.1 Configuring Tally.NET features
To configure the Company for Tally.NET features,
Go to Gateway of Tally > F11: Features > F4: Tally.NET Features
 In the Registration Details section,

 Type the required Connect name for the Company (e.g. Global Enterprises) in the
Connect Name field (Tally.ERP 9 allows to specify company name to be connected /
made available as per the user requirements)
 Type the required name (e.g. Rajesh) in Contact Person Name field
 Type the contact number (e.g. 9909968650) in Contact Number field
 In Connect for Remote Access section,
15
Tally.NET Overview
Select
Yes for Allow to Connect Company
Select
Yes for Connect on Load
 SMS Access Details options can be skipped if SMS is not used.
The completed Tally.NET Features screen is displayed as shown.
Figure 3.1 Completed Tally.NET Features screen
 Press Enter to accept.
 Connect Name: The user can specify any Connect Name for the Company to
be connected.
 Contact Person Name: The name of the Contact person should be entered
who should is responsible for connecting the Company to Tally.NET
 Contact Number: The name of the contact person should be provided for the
person who is responsible for connecting the company to Tally.NET
 Allow to Connect Company: This option allows the user to enable the Com-
pany to get connected for remote access.
 Connect on Load: This allows the company to get connected by default when
the company is loaded.
16
Tally.NET Overview
It is mandatory to enable Security Control in the Company Creation master for

Tally.NET features to be available in Tally.ERP 9. In case Security Control
feature is not enabled, go to the Company Alteration (Alt+F3) screen and
enable the same before proceeding further.
3.2 Authorise Tally.NET Auditors
To Authorise the Tally.NET Auditors, execute the following steps:

Go to Gateway of Tally > Alt+F3: Company Info. > Security Control
The Security Control screen is displayed as shown:
Figure 3.2 Security Control menu
 Select Users and Passwords and press Enter
17
Tally.NET Overview
 The List of Users for Company is displayed as shown:
Figure 3.3 List of Users for the Company
 Select Tally.Net Auditor from the Security List

 Enter the BAP user name (e.g. tallybapuser@tallysolutions.com) in Name of User field
 Password field will be skipped
 Type Yes in Allow Remote Access field to allow the user to access data from a remote
location
 Type No in the field Allow Local TDL, so that the user does not execute TDL files available
on the remote computer
 Type the contact number (e.g. 9890412345) in the Mobile Number field
 Select End of List
18
Tally.NET Overview
Figure 3.4 User Authorisation screen
 Accept to allow remote access to the user.
 The registered CA User name will be provided to the customer/client from their
Chartered Accountant/ Auditor.
 Allow Remote Access should be set to Yes, only if you want your Auditor to
access your data remotely for Auditing.
3.3 Create Security Controls
By default, Tally.NET Auditor is created and authorised in the capacity of Owner, thereby having
complete access to the company data. However, the Client can allow /disallow access to a menu/
report by altering the Security Levels.
To create security controls for Tally.Net Auditor, execute the following steps shown.
Go to Gateway of Tally > press Alt + F3: Company Info. > Security Control > Types of
Security
 In the Security Levels screen, select Tally.NET Auditor
 In the Security Levels sub screen for Tally.NET Auditor
19
Tally.NET Overview
 By default Tally.NET Auditor appears in the Name of Security Level field
 By default Tally.NET Auditor will Use the Basic Facilities of an Owner, which has full
access on the company data. You can also select Tally.Net Auditor from Security List
which has similar properties
Figure 3.5 Security Level for Tally.Net Auditor
 By default Days allowed for Backdated Vouchers is set to 0

 The Cut-off date for Back Dated Vouchers is left empty
 Set Yes to Allow to Connect Company, if you want the Tally.NET Auditor to Connect
the Company to Tally.NET
 Set No to Use Tally.NET Authentication
 Set Yes to Use Tally.NET Auditor Authentication
In Disallow the Following Facilities:

 Select End of List from Type of Access
In Allow the Following Facilities:

 Select Full Access from Type of Access
 Select Audit Listings from List of Reports
20
Tally.NET Overview
Figure 3.6 Security Levels for Tally.NET Auditor
 SelectEnd of List from Type of Access and return to Security Levels for Company
screen
 Press Enter.
 Accept to save the access controls for Tally.NET Auditor.
If you want to deny access to certain reports for Auditor you can select the type of
access and select the required reports in the Security Levels screen.
21
Tally.NET Overview
3.4 Connect Company to Tally.NET for Remote Auditing
To enable the Auditor to Log in as Remote Auditor, the Client needs to Connect the required
Company to Tally.NET.
To connect a Company to Tally.NET, execute the following steps:
Go to Gateway of Tally
 Click on F4: Connect or press F4.
The Company Info menu is displayed as shown:
Figure 3.7 Company Info menu
 Select the Company that needs to be connected from the List of Companies and press
Enter
22
Tally.NET Overview
The completed Connect Companies to Tally.NET screen is displayed as shown:
Figure 3.8 Remote Company Login
 Press Enter to Connect
The Connect Companies to Tally.NET screen will not be displayed if a single

company loaded. In this case, the loaded company directly Connects to
Tally.NET you click on F4: Connect or press F4.
The Company should be connected to Tally.NET during the Remote Auditing process for the
Auditor to view the required reports and post Audit comments.
23
Tally.NET Overview
On establishing a successful connection, the status is displayed in the Calculator panel available
in the Information Panel. Click on the Calculator Panel to view the complete message as shown:
Figure 3.9 Tally.NET Connection status
The Client needs to ensure that the Company is connected to Tally.NET during the Remote Audit
process for the Auditor to check various reports and post the Audit Remarks.
24
Lesson 4: Features of Auditors’ Edition
Auditors’ Edition comprises of the following features which will help the Auditors in improving the
efficiency while providing the Audit & Compliance services to the Clients.
 Tax Audit tool as per section 44AB of IT Act

 Form 3CD Printing
 Statutory Audit tool to perform Audit as per the requirements of Company’s Act
 Data Analysis
 Auditing
 Financial Statements in Schedule-VI format
 Statutory Compliance tool for regular compliance services
4.1 Tax Audit
Tax Audit feature helps in helps in ensuring that the books of accounts and other records are
properly maintained, in order to reflect the true income of the assessee and to facilitate the Tax
Auditor to carry out the verification and generate required Annexure and Forms.
The key features of Tax Audit tool in Tally.ERP 9 are listed below:
 Extracting financial and quantitative information required for Tax Audit (under Sec. 44AB)
 Displaying relevant data for Audit based on Clause requirement for the following
 Clause 16
 Clause 17(h)
 Clause 18
 Clause 21
 Clause 24(a) & 24(b)
 Clause 27
 Annexure II (FBT)
 Instant Statistics on Audit Listings (Audited Vouchers & Unaudited Vouchers)

 Provides facility to record Audit Remarks using Audit Note
25
Features of Auditors’ Edition
 Provision to mark Vouchers for clarification / Verification from Clients

 Provides facility to post corrections and reviews remotely
 Tracking any alteration / modification to vouchers post Audit
 Generate Annexures to Form 3CD
 Printing of Form 3CD along with Annexure I and II
To view the Tax Audit Dashboard,

Go to Gateway of Tally > Audit & Compliance > 44AB Audit
The Tax Audit Dashboard appears as shown below:
Figure 4.1 Tax Audit Dashboard
The Tax Audit dashboard screen shows total number of vouchers available for Audit (Unaudited),
number of Vouchers Audited, number of Vouchers To be re-audited and Audit Complete informa-
tion for each Clause.
 Audit Type: Displays the Clause Name and number.

 Unaudited: Displays the total number of unaudited vouchers for each clause.
26
The Voucher Count shown under the Unaudited Column also contains the Vouchers
which are shown under the Under Observation, Need Clarification, Clarified and
Altered columns.
 Audited: Displays the total number of Audited Vouchers for each clause.
 Under Observation: Displays the total number of Vouchers marked as Under Observation
for each Clause. The Auditor can mark a Voucher as Under Observation for further study or
for his Superior's help. The Auditor or his superior can highlight the respective column to
drill down to view the Under Observation Summary for each Clause.
 Need Clarification: Displays the total number of Vouchers marked for Clarification from
the Client. This will help the Auditor to keep track of the total number of Vouchers that are
pending for Clarification from the Client. The Auditor can highlight the respective column to
view the Need Clarification Summary for each Clause.
 Clarified (To be re-audited): Displays the total number for Vouchers which are Clarified by
the Client for each Clause. The Auditor can highlight the respective column to view the
Clarified Vouchers.
 Altered (To be re-audited): Displays the total number of Vouchers that are Altered by the
Client post Audit. The Auditor can highlight the respective column to view the Re-Audit
Summary for the respective Clauses.
 Audit Complete?: Displays the Audit completion status for each Clause as entered by the
Auditor using the F9: Save Audit button.
If the Client alters any Audited Vouchers after the Audit Complete is set to Yes.
The Audit Complete status will automatically change to blank for the respective
Clause.
The Auditor can click on any Clause in the Tax Audit dashboard to perform the Audit for the
respective Clause.
Once the Audit is completed for each Clause, the auditor can click on Print button or press Alt+P
from the Tax Audit Dashboard to print all the Annexure for all Clauses.
The Annexure for each Clause can be printed separately by drilling down into each
Clause and pressing Alt+P from any report in the respective Clause.
27
4.1.1 Form 3CD

Tally.ERP 9 provides the Form 3CD which can be filled by the Auditor at the end of the Audit
process and print out for the same can be taken along with the respective annexures.
The Salient Features of Form 3CD in Tally.ERP 9 are listed below:
 The filled Form 3CD will get saved along with the company data for each company and
hence available for reference next year. There is no need to save Form 3CD separately in
an Excel sheet or any other format.
 The entire Form 3CD can be copied from one company to different companies or different
years of same company and hence time can be saved by eliminating data entry.
 Customized texts (auto text) which are commonly used are automatically generated while
filling the Form 3CD to reduce the time to enter information.
To view the Form 3CD Dashboard,
Go to Gateway of Tally > Audit & Compliance > Form 3CD
The Form 3CD Dashboard in Tally.ERP 9 is displayed as shown:
Figure 4.2 Form 3CD dashboard
The Auditor can drill down on the Clause no. column on the left side and enter the required infor-
mation and save it.
Once the Form 3CD is filled completely, the Auditor can click on P: Print button or press Alt+P to
print the Form 3CD along with Annexure I and Annexure II.
28
4.2 Statutory Audit

The Statutory Audit tool is aimed at providing the necessary tools to investigate Audit data by
comparing the same with the previous year’s data that is available in the same company or a
separate company.
The Auditor can generate the required Financial Statements like Balance Sheet and Profit & Loss
Account statement that needs to be submitted to the stake holders as per the format prescribed in
Company’s act.
This tool is divided into the following sections:

 Statutory Audit
 Data Analysis
 Auditing
 Audit Journals
 Financial Statements
 Schedule-VI Balance Sheet
 Schedule-VI Profit & Loss A/c
4.2.1 Data Analysis
Data Analysis consists of the following tools, which will help in highlighting the exceptions that the
Auditor will be interested to verify:
 Verification of Chart of Accounts: will help the Auditor to understand and scrutinize the
Chart of Accounts by comparing with the previous Year Chart of Accounts and will draw
attention for all exceptional cases such as Master which as Discontinued, Newly Created,
Regrouped etc. The Auditors can also generate the Ledger Balance Variance report.
 Verification of Balances: Will help the Auditor to check the difference in Opening Bal-
ances and Transaction details by highlighting the exceptions. The Negative Cash balance
and Ledger Balance variance reports can also be generated.
 Verification of Stock Items: Will help the Auditor to check the Stock Items available and
will draw attention for the exceptional items such as negative stocks, difference in balances
etc. by comparing with the previous years Stock Items list.
 Analytical Procedures: Will help the auditor to Compare various Groups/Ledgers/Cost
Category/Cost Centres or cross comparison to draw various trends and obtain the Variance
for further investigation.
 Pending Documents: Provides the details of the pending bills, Sales Orders & Purchase
Orders and Receivable & Payable during the selected year.
 Statutory Payments: Will help the Auditor to find if the necessary Statutory payments were
made on time or not. This will also help to find the details of the Amount Payable, Paid and
Balance if any.
 Fixed Assets Analysis: This report displays the details of the Fixed Assets Ledgers with
the following information:
29
 Opening Balance of the Assets brought forward from the previous year
 Accumulated Depreciation for the Assets if separate Ledger is created for each
Asset
 Number of days for the Assets purchased/procured during the Audit Year with the
option to classify as less than 180 days and more than 180 days. The relevant
Purchase entries are also available for scrutiny.
 Closing Balance for each Fixed Assets at Group and Ledger level.
The above report can be exported to Excel and the Depreciation can be computed for
each asset.
4.2.2 Auditing
The Auditing section provides the facility to the Auditors to Vouch the transactions and enter the
required Audit remarks.
 Verification of Vouchers: Option to apply the recommended Sampling methods and do

the Auditing for the Sampled Vouchers or all Vouchers is provided.
 Related Party Transactions: Option to check and Audit the vouchers of Ledgers marked
as Related Party is provided.
 Forex Transactions: Option to check and audit the transactions involving multi currency is
provided.
 Micro, Small and Medium Enterprises (MSME) Transactions: Auditor can check and
audit the Outstanding Payments for the parties identified as MSME’s. The Payments which
were made after 45 days can also be tracked using this report.
 Salary / Wages Payments: Auditor can check the Headcount details and Salary Payments
details for all the employees and option to audit these transactions is provided.
To view the Data Analysis and Auditing reports,
30
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis
Figure 4.3 Statutory Audit Dashboard
Once the Auditor finishes verifying the data using the each tool, he can mark the status in the Ver-
ification Complete? column to Yes.
The drill down from Total, Audited columns will display all and Audited Vouchers respectively.
While the drill down from the Under Observation, Need Clarification, Clarified (To be re-
audited) and Altered (To be re-audited) columns will display the Vouchers with the respective
Audit Status.
4.2.3 Audit Journals

The Audit Journals report displays and provides the facility to pass the Finalisation, Appropria-
tion and Provision Entries which are required to finalise the Books of Accounts.
These entries can be passed using the following appropriation types using the F7: Audit Jrnl
button:
 Appropriation: This Appropriation Type should be used to record the Appropriation entries
such as Dividend, Dividend Tax, Reserve and Surplus etc. The entries passed with the
Appropriation flag will appear below the heading Appropriations under the Amount Availa-
ble for Appropriations in the Schedule-VI Profit & Loss A/c.
31
 Depreciation Provisions: This Appropriation Type should be selected to record the

Depreciation entries which will appear as Depreciation under Profit/(Loss) before Interest,
Depreciation and Tax in the Schedule-VI Profit & Loss A/c.
 Finalisation Entries: This Appropriation Type should be used to pass the entries that will
affect the Profit/(Loss) before Interest, Depreciation and Tax in the Schedule-VI Profit &
Loss A/c. Profit & Loss A/c Ledger is not available for selection when this flag is selected in
the Audit Journal creation.
 Interest Provision: This Appropriation Type should be selected to record the provisional
entries for Interest which will appear as Interest under Profit/(Loss) before Interest, Depre-
ciation and Tax in the Schedule-VI Profit & Loss A/c.
 Tax Provisions: This Appropriation Type should be selected to record the provisional
entries for Tax which will appear as Provision for Taxation under Profit/(Loss) before Tax in
the Schedule-VI Profit & Loss A/c.
 Others: This Appropriation Type should be selected for all other entries. If the Client has
passed any entry using the Profit & Loss A/c Ledger it will appear under Others in the Audit
Journals report. The Auditor needs to correct these entries by selecting the required Appro-
priation flag.
The entries with the Others flag will appear above the Profit/(Loss) Carried to Balance
Sheet in Red colour to grab the attention.
The Audit Journals report with these entries is displayed as shown:
32
Figure 4.4 Audit Journals
4.2.4 Financial Statements:
Using Auditors’ Edition of Tally.ERP 9 the Financial Statements can be prepared as per the
Schedule VI requirements as specified in Companies Act. The following reports can be
generated using this tool in the Schedule VI format:
 Balance Sheet
 Profit & Loss Statement
The salient features for the Schedule VI reports are listed below:
 Schedule-VI Balance Sheet
 Can be generated with a single click
 Tally Default Groups (Business Groups) are mapped to Schedule VI groupings by

default.
 Can be further regrouped as required (User defined)
 Flexible Schedule numbering
 Generation of Schedules
 Export to Excel for further formatting if required.
 Schedule-VI Profit and Loss A/c
33
 Sales & Income Groups are mapped to INCOME by default

 Expenses & Purchase Groups are mapped to EXPENDITURE
 Option to rename INCOME & EXPENDITURE is provided to support all industries
 Flexibility to regroup within INCOME & EXPENDITURE
 Flexible Schedule numbering
 Generation of Schedules
 Export to Excel for further formatting if required.
Balance Sheet
To generate the Balance Sheet in the required Schedule VI format,
Go to Gateway of Tally > Audit & Compliance > Financial Statements > Balance Sheet
34
The schedule VI Balance Sheet is displayed as shown:
Figure 4.5 Schedule VI Balance Sheet
To generate the Balance sheet with previous year figures, load the previous year data if it is in a
different Company.
 Click on Ctrl+F3: Compare Cmp or press Ctrl+F3
Figure 4.6 Compare Company screen
35
 Select the required Previous Year Company and press Enter
Figure 4.7 Schedule VI Balance Sheet with two years data
All the default Tally Groups are mapped to the Schedule VI titles to generate the above Financial
Statements. The Auditor can further re-classify these Groups as per the requirement without
affecting the Client’s data.
36
Profit & Loss Statement

To generate the Profit & Loss A/c Statement in the required Schedule VI format,
Go to Gateway of Tally > Audit & Compliance > Financial Statements > Profit & Loss A/c
The schedule VI Profit & Loss A/c statement is displayed as shown:
Figure 4.8 Schedule-VI P&L Account statement
In the above report all the default Sales, Direct Income and Indirect Income Groups are
mapped under INCOME and all the default Purchase, Direct Expenses, Indirect Expenses
Groups are mapped under EXPENDITURE.
The user can reconfigure the above report as per the requirement to arrive at the final Profit &
Loss A/c Statement.
The Tally Groups appearing under INCOME can only be reclassified under INCOME. Similarly,
the Tally Groups appearing under EXPENDITURE can be reclassified only under EXPENDI-
TURE.
4.3 Statutory Compliance
The Statutory Compliance feature in the Auditors’ edition will help the Auditors’ to provide the
Compliance services for various direct and indirect taxation modules on a regular basis.
37
The salient features for Statutory Compliance tool are listed below:
 Taxation based in-built rules to classify the Masters and Vouchers as Possibly Incorrect
(not created as per the recommended setup for each Taxation)
 Reasons for Possibly Incorrect Masters and Vouchers
 Auditor can concentrate only on Possibly Incorrect and save time
 No need for 100% verification of Masters and Vouchers (for other than Possibly Incorrect)
 Taxation based Payable & Paid information
 Taxation based Due Dates
 Random verification of In Accordance Masters and Vouchers
 Provision to raise Clarification on Master and Vouchers from Clients
 Provides facility to record Verification Remarks using Verification Note
To view the Statutory Compliance Dashboard,

Go to Gateway of Tally > Audit & Compliance > Statutory Compliance
The Statutory Compliance Summary screen appears as displayed below:
Figure 4.9 Statutory Compliance Summary
38
The Statutory Compliance Summary is divided into two sections:
1. The first section displays the number of Ledgers and Vouchers and classifies them into
following:
 Total: Displays the total number of Ledgers/Vouchers

 Possibly Incorrect (to be Verified): Displays the number of Ledgers/Vouchers which are
not created/passed as per the setup recommended by Tally.ERP 9 for selected Statutes.
 Marked for Clarification/Correction: Displays the number of Ledgers /Vouchers for which
the clarification is asked from Client or correction is suggested.
 In Accordance: Displays the number of Ledgers/Vouchers that are created/passed as per
the recommended setup in Tally.ERP 9 for the selected Statutes.
 Others/Non Statutory: Displays all other Ledgers /Vouchers that does not belongs to the
selected Statutes.
The number of Ledgers/Vouchers that are marked Verified will appear in the
brackets next to the total number of Ledgers/Vouchers in each column except
Possibly Incorrect (to be Verified) and Marked for Clarification/Correction.
2. The second section shows the Statutory Payment Details for the selected period along with
pending payments and due dates etc.
 Tax payable: Displays the total tax payable for the selected period.
 Tax paid: Displays the total tax paid during the selected period.
 Balance Tax: Displays the pending tax payment based on the Tax payable and Tax Paid
amounts during the selected period.
 Due on: Displays the last date of making the tax payment for the selected period if there is
any balance tax to be paid.
The due date for the selected statue is shown based on the due date specified in the
F11: Audit Features screen.
The Auditor can drill down from the first section to view the Ledger Masters and Ledgers
Vouchers and perform the Audit and save the Verification remarks. The drill down from Possibly
Incorrect (to be Verified) will display the reasons for the non compliance.
The drill down from the second section displays the Computation reports for each statute.
39

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Getting Started with Auditors’ Edition

© 2010 Tally Solutions Pvt. Ltd. All rights reserved.

Version: Getting Started with Auditors’ Edition of Tally.ERP 9/2.0/Aug 2010

Lesson 1: Creating Tally.NET Auditors

Lesson 2: Lesson 2: Auditing Scenarios in Tally.ERP 9

Lesson 3: Lesson 3: Tally.NET Overview

Lesson 4: Lesson 4: Features of Auditors’ Edition

 Audit at CA’s office by accessing local data

1.1 Creating Tally.NET Auditors

Figure 1.1 Tally.ERP 9 Startup screen

The Control Centre Login screen is displayed.

The Account Password is Automatically generated during the Activation and

Figure 1.2 Control Centre Login screen

Figure 1.3 Control Centre in Tally.ERP 9

From the Control Centre screen,

Figure 1.4 User Management screen

 Enter the required Email ID (e.g. bapuser1@tallysolutions.com) in the Tally.NET ID

 Set Tally.NET Auditor field to Yes

 Admin field will be skipped

 Set Status field to Active

Figure 1.5 Completed User Management screen

The Password for bapuser1@tallysolutions.com will be emailed to the

2.1 Audit at CA’s office by accessing local data

Go to Gateway of Tally > Alt+F3: Company Info. > Select Company

 Select the company to be audited and press Enter

Figure 2.1 Company selection screen

The Company Login screen is displayed as shown:

Figure 2.2 Company login screen

 Enter the User Name and Password provided by the Client.

The completed Company Login screen is displayed as shown:

Figure 2.3 Completed Login screen

 Press Enter to Load the Company

Figure 2.4 Gateway of Tally (for Auditors’ Edition of Tally.ERP 9)

2.2 Audit at Client’s place by accessing local data

To start the Audit, execute the following steps.

Go to Gateway of Tally > Company Info. > Select Company

Figure 2.5 List of Companies for Selection

 Select the company to be audited and press Enter

 Tally prompts for User Name and password

Figure 2.6 CA Login Screen

Type the password in the Password field

The Gateway of Tally screen is displayed as shown:

Figure 2.7 Auditors’ Edition of Tally.ERP 9 (Remote Authentication)

2.3 Audit Remotely by accessing Client's data from anywhere

The process of Remote Audit is as shown:

Figure 2.8 Company Info screen

 Select Login as Remote User and press Enter

The Remote Login screen is displayed as shown:

Figure 2.9 Remote Login screen

In the Remote Login screen,

The completed Remote Login screen is displayed as shown:

Figure 2.10 Completed Remote Login screen

 Press Enter to login Remotely

The Remote Company selection screen is displayed as shown:

Figure 2.11 Remote Company Selection screen

On successful login, the Gateway of Tally screen is displayed as shown:

Figure 2.12 Gateway of Tally with Remote Login

Remote Auditing can be performed successfully on the Educational Version of

Tally.NET (to be read as TallyNET) is an enabling framework which establishes a connection

By default Tally.NET is enabled in Tally.ERP 9, however, certain configurations have to be setup to

1. Configuring Tally.NET features

3.1 Configuring Tally.NET features

To configure the Company for Tally.NET features,

Go to Gateway of Tally > F11: Features > F4: Tally.NET Features