Proalpha Releases Guide for Digital Audit Preparation

ERP provider proALPHA has published a guide aimed at easing the preparation process for companies facing digital audits. The guide outlines nine key to-dos designed to help businesses prepare optimally and mitigate stress associated with these examinations.

The core of the preparation involves efficient data management and process documentation. Information should be stored in a way that allows for easy export for auditors. German law mandates that companies create process documentation to ensure the traceability and verifiability of business processes.

The article also emphasizes granting appropriate access to auditors. Tax authorities can choose between direct data access, indirect data access, or providing data carriers. In Germany, approximately 80% of digital audits utilize data carriers, such as CDs or DVDs.

ProALPHA highlights the importance of regular employee training, up-to-date checklists, and control systems, particularly for sensitive areas like travel and entertainment expenses or cash journals. Legally compliant document archiving and ensuring data immutability are also crucial, where a document management system (DMS) can offer significant advantages.

According to the guide, businesses should be aware of their rights and the rules governing tax authorities, including the possibility of postponing an audit under specific circumstances. Briefing employees and leveraging experts, such as tax advisors, are also stressed as important during an audit. Continuous plausibility checks, even outside of audit periods, can help identify errors promptly.