Computer-assisted audits can be categorized into two types, as specified in IR297:
Systems Audit
A systems audit involves a detailed analysis and evaluation of a complete accounts computer system—from data entry to the posting of financial accounts. This process includes the IRD engaging with staff who have a day-to-day understanding of the computer programs and operations.
Data Download
This refers to the analysis of client data using commercially available software.
Both MYOB and Xero accounting software meet the IRD's requirements for maintaining electronic records under IR297a, including approval to store customer data offshore.
If you're storing records electronically, utilizing the ‘Attachments’ feature in both Xero and MYOB is highly recommended. This allows customers to upload copies of invoices and other essential documents directly into the software.
It’s important to note that if a customer ends their subscription to MYOB or Xero, they must export or back up any data and documents to ensure compliance with record-keeping obligations. However, accounts can be reactivated if needed to regain access to the stored data.
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