Trial Balance Groups

AuditDesktop allows you to add multiple Initial trial balances, organised in a hierarchical way.

Using the toolbar, you can Import and Edit trial balances, in the same way as in the Trial balance tab. The other available functions are:

• Edit groups
• Consolidate 
• Print on a template
• Refresh data

Depending on their type, trial balance groups are used for different purposes.

Trial balance subreport types

The subreport type is set at the parent node; it defines the child node dependencies. The behaviour of "Consolidation" and "Notification" functions depends on the subreport type that is set. Notifications appear as change in the cell's background colour of the parent trial balance. When you place the cursor in the respective cell, the program will display information about the respective notification.

AuditDesktop supports the following trial balance subreport types:

• No dependency
  
• Series
• Subset
• Accumulative

No dependency

There is no dependency between separate trial balances. No control is exercised between the parent and child nodes.

Series

Trial balance subreports for consecutive non-overlapping periods, such as monthly or quarterly trial balances.

Notifications

In the series subreport type, the parent trial balance controls the following:

1. The Closing balance of one period corresponds to the Opening balance of the subsequent period or there is a missing sum in a given period. The notification is displayed over the account's code and name.
2. The opening balance of the first trial balance corresponds to the opening balance of the parent. The notification is displayed in the Opening balance' cells.
3. The sum of the child trial balances' Turnovers is equal to the parent Turnovers. The notification is displayed in the Turnovers' cells.
4. The Closing balance of the last trial balance is equal to the Closing balance of the parent. The notification is displayed in the Closing balance' cells.

Consolidate

Parent trial balance values are calculated as:

• Opening balance = Opening balance of the first trial balance
• Turnovers = sums of the Turnovers of all trial balances
• Closing balance = the Closing balance of the last trial balance

Application example

Analysis of changes in Turnovers of a selected account over predefined periods. For a graphic presentation of these changes, select an account and open the Chart tab.

Subset

The parent trial balance is formed from its child trial balances.

Notifications

Control is performed in the parent trial balance so that the parent trial balance values are equal to the sum of its child trial balances.

Consolidate

Parent trial balance values are calculated as a sum of the child trial balance values.

Application examples

• Statement consolidation (used in combination with eliminations)
• Trial balance consolidation for different activities in the budget sector

Circle charts are used for graphic presentation:

Accumulative

Each subsequent child trial balance incorporates the previous one, i.e., they share one and the same Opening balance.

Notifications

In the accumulative subreport type, the parent trial balance controls the following:

1. The Opening balance of the first trial balance corresponds to the Opening balance of the parent. The notification is displayed in the Opening balance' cells.
2. Turnovers and Closing balance of the last trial balance is equal to the Turnovers and Closing balance of the parent. The notification is displayed in the Closing balance' cells.
   
   

Consolidate

Parent trial balance values are calculated as:

• Opening balance = Opening balance of the first trial balance

• Turnovers and Closing balance = Turnovers and Closing balance of the last trial balance

Application examples

An application example is the intermediate audit, before the end of the audit period. In this case, for trial balance values are entered those of the intermediate and the entire period.

Combining different subreport types

The program allows its users to combine different subreport types.

For example: an intermediate audit setup, with an analysis of the company's activity during the year.

Consolidate

During consolidation, the trial balance is formed on the basis of its child trial balances, depending on the selected subreport type.

You can choose which data to be transferred from the child trial balances:

• Initial TB - takes Initial trial balance as output data
• Initial TB and Misstatements - takes Initial trial balance as output data and copies all misstatements entered in the child trial balances
• Adjusted TB - takes Adjusted trial balance as output data
• Adjusted TB and Reclassifications - takes Adjusted trial balance and copies all reclassifications entered in the child trial balances
• Final TB - takes Final trial balance as output data
• Final TB with Eliminations - takes Final trial balance as output data and applies all eliminations entered in the child trial balances