"correcting" transactions

[David]

Thanks, Liz.

John S.-- since you've raised the issue, how would you go about ensuring that an electronic record is secure, original, and untampered?

David T.



_____________________________________________
From: Liz <edodd at billiau.net>
Sent: Fri Feb 21 00:06:56 PST 2014
To: gnucash-user at gnucash.org
Subject: Re: "correcting" transactions


On Thu, 20 Feb 2014 19:25:01 -0800
"John R. Sowden" <jsowden at americansentry.net> wrote:

> I have been reading a lot recently about correcting, removing, etc. 
> transactions. This is typically a no no in accounting. I am not a
> CPA, but I have a general idea of GAAP (generally accepted accounting 
> practices). It does not allow for removing or editing existing 
> transactions without an audit trial. A simple was to do these things
> is to create "reversing entries" as general journal entries with 
> explanations. If the business owner is the only person using gc, and 
> the resulting reports is only for his/her use, this is more of a 
> formality, but if a bookkeeper/embezzler is using gc, this allows 
> transactions to be hidden/altered. Not a good thing.
> 
> John
> 

It's difficult to alter paper records and make them look right.
Forensic science experts have ways to determine that the pen was not
the same, the paper was different.
So required adjustments were made in the way you describe.

Computer files are alterable. You cannot prove that file.gnucash is the
same today as tomorrow.
If I wish to alter my books I have far more ways to do so than with
paper, and it is far, far harder to detect.

Audit trails are not the complete answer to preventing fraud and
embezzlement with computerised bookkeeping. They may appear to be, but
we assure you that you need to make copies of your files regularly and
have them notarised eg have the checksums calculated and notarised on a
regular basis AND burn copies to read only media, with copies kept in
more than one place.

Liz
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