"correcting" transactions

[elvis]

On 21/02/14 13:25, John R. Sowden 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
>
What you want is called fake security. At first glance what you want 
seems reasonable...   but in reality, any technical person can alter the 
computer program to make the output look exactly as they please.

The way to get security would be to have read only media at certain 
checkpoints in time (say at the end of every month) and then have your 
audit person compare the current output with them.

And as an accountant here is my take on accounting principles, it's a 
load of crap. Accountants try to pass this stuff as natural laws like 
the speed of light etc. Where really accounting is simply a business 
tool to help the business owners make decisions. Not something to 
provide accountants with government mandated jobs.


Lawrence


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