Digital Audit vs Traditional Audit: What's the Difference?
Posted: Tue Feb 18, 2025 7:50 am
Tax accounting aims to carry out tax planning and management actions , in order to also maintain a record and control of operations.
Conventional auditing works through the manual analysis and checking of documents, records, books and accounting statements, as well as gathering information from internal and external sources for checking.
Digital auditing performs the same operations, checking electronic tax data relevant to an organization, such as Sped Fiscal files . Data is cross-referenced with amounts paid, estimated, balance sheets honduras mobile database and more complex structural analyses. If there are errors, the results indicate ways to solve them.
In general terms, the types of audits are not mutually exclusive. The digital model is recommended both for companies that want full regularization and use, for the most part, electronic documents and for those that use ERP systems .
The differences between digital and traditional auditing lie in the fact that conventional audits, being manual, are slower, more inaccurate and in the capacity that technology has to process examinations in more complex tax operations and with a high volume of data.
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How to do a digital audit?
First of all, the company needs a digital auditor , that is, a specialist professional who combines extensive knowledge in the tax area with all legislation and who has mastery of auditing processes and the technologies available to carry out this examination.
Occasionally, financial managers and specialized economists may perform this type of audit, although accountants are the most common and recommended auditors.
The auditor will begin the audit process following the Brazilian standards established for such action, gathering all information about the business operations.
The company's files (EFD ICMS /IPI, ECD, ECF, etc.) are subjected to expert analysis or examination, with the support of specific technology. Data is cross-checked and the results will show whether everything is in compliance, and whether there are any irregularities or accounting and tax risks.
Conventional auditing works through the manual analysis and checking of documents, records, books and accounting statements, as well as gathering information from internal and external sources for checking.
Digital auditing performs the same operations, checking electronic tax data relevant to an organization, such as Sped Fiscal files . Data is cross-referenced with amounts paid, estimated, balance sheets honduras mobile database and more complex structural analyses. If there are errors, the results indicate ways to solve them.
In general terms, the types of audits are not mutually exclusive. The digital model is recommended both for companies that want full regularization and use, for the most part, electronic documents and for those that use ERP systems .
The differences between digital and traditional auditing lie in the fact that conventional audits, being manual, are slower, more inaccurate and in the capacity that technology has to process examinations in more complex tax operations and with a high volume of data.
Select
What is your biggest professional and/or student need at the moment?*
What is your greatest professional and/or academic need at the moment? *
I agree to receive communications.
By providing my data, I agree to the Privacy Policy .
Receive content first hand
should_not_change
We promise not to use your contact information to send any type of SPAM.
How to do a digital audit?
First of all, the company needs a digital auditor , that is, a specialist professional who combines extensive knowledge in the tax area with all legislation and who has mastery of auditing processes and the technologies available to carry out this examination.
Occasionally, financial managers and specialized economists may perform this type of audit, although accountants are the most common and recommended auditors.
The auditor will begin the audit process following the Brazilian standards established for such action, gathering all information about the business operations.
The company's files (EFD ICMS /IPI, ECD, ECF, etc.) are subjected to expert analysis or examination, with the support of specific technology. Data is cross-checked and the results will show whether everything is in compliance, and whether there are any irregularities or accounting and tax risks.