SA 240 requires the ଅଡିଟର୍ to test journal entries with three specific risk areas: last-minute manual journals (often the final fortnight of the financial year), unusual debit-credit pairings that may signal earnings management, and related-party ଲେଣଦେଣ rings. CORAA tests the complete journal universe against all three, not a sample. The SA 240 ୱାର୍କିଂ ପେପର୍ documents the ପ୍ରକ୍ରିୟା with source ଭାଉଚର୍ attached.
Two paths to the same audit conclusion. One leaves traces; the other doesn't.
CORAA filters the journal for entries created manually (user-posted, not system-generated) within a configurable window before year-end. Default is the last 14 ଦିନ. The ଅଡିଟର୍ sees every such JE, its amount, the ଲେଜର୍ debited and credited, and the source ଭାଉଚର୍.
Some ଲେଜର୍ pairs are red flags: Bank debited with Revenue credited (unusual; revenue typically goes to Debtors first), Suspense ଲେଜର୍ debited with ଅନ୍ୟ Income credited, etc. CORAA's pairing rules flag these patterns across the complete journal.
Once the Related Party list is set in ଏଙ୍ଗେଜମେଣ୍ଟ୍ Setup, CORAA builds a graph of ଲେଣଦେଣ between related parties. Circular flows (Entity A pays B, B pays C, C pays A) surface as rings. The graph is shown in Intelligence Studio.
Tally ।
Rules anchored to common earnings management patterns: revenue recognition shortcuts, ଖର୍ଚ୍ଚ deferrals, suspense ଲେଜର୍ usage, late-period reclassifications. Each rule has an SA 240 paragraph reference.
Intelligence Studio renders the related-party ଲେଣଦେଣ graph. Each related entity is a node; each ଲେଣଦେଣ is an edge weighted by amount. Circular flows are highlighted automatically. Click any node to drill into ଲେଣଦେଣ.
The SA 240 Working Paper documents the ପ୍ରକ୍ରିୟା performed: which window was tested, which rules were applied, which entries were flagged, which were dismissed with ଅଡିଟର୍ rationale.
