Information System Audit Project - Saga C 30

1. Describe the information system subject for your audit mission.

SAGA C 3.0. is an accounting information system designed for small and middle companies. SAGA C is a free and no limitation software. Saga C is a frequently used accounting system in the accounting area because it is easier to use compared with other accounting system available. Saga C 3.0. has the benefit of being often updated to new legal requirements, it can be used by multiple used within the accounting department and also it can be used for multiple companies. The access to the system options is made through an internal network. Still the main reasons I believe companies choose to use this particular accounting software is it handy usage and faster assimilation by junior accountants.

1.1. General presentation of the accounting system:

The main tabs available are files, operations, statements, other, administration and help. The main files are the accounting plan, the accounting entry file, intermediary accounts statement, balance files, the bank and cash file and the expense report file, the payroll file, the production file as well as the stock file, other files for stock operation listings in lei or currency, a file for tracking the profit centers, a file for liking the accounting system to the listing system for the cash register and last but not the least an users file.

1.2. The processing of the system/ system description:

- Inputs and validation records in an easy manner, either from inputs or outputs invoices in lei or foreign currency, transfers or accounting articles. The validation of a record can be made when entering the accounting record, so there is no need for additional validation and after entering a record, all files are updating according to the new situation.

- Accessing files in real time is made through the multiple possibilities the system offers for accounts, clients, suppliers, balances, cash and bank, statement for an account, or an analytical account. The system offers multiple and complex options for visualizing diverse statements. Visuals of the statements are made through two options, printing or visualizing through OneNote.

- Statements are available from the third tab for accounts, balance sheets, general ledger, client and supplier statements, inventory ledger and many other statements. Statements are available for a specific period of time as requested by users. Filing can be made by listing a specific statement or can be saved using One Note.

Custom statements can be made for specific accounts on a daily basis for a more thorough checkup.

- Modifying the accounting records is referring the way in which the application does and does not allow changes to the already made recordings. In SAGA changes are allowed after the devalidation of the original record.

- Closing the accounting period is made from the operating tab – closings and only after closings on stocks, VAT, depreciation and revenue and expenses are validated

- Automatic generation of records is possible for depreciation and revenues and expenses closure.

- The compliance with the legal provision in force; this aspect will be verified in order to see whether the system is respecting the low or not.

1.3. General presentation of the organization:

The company is a small one with only one location; the company is structured centralized and has only five employees and an accountant. The company’s operations are simple: the company buys and sells clothes and accessories.