Cex : Computer Assisted Audit Programme (CAAP) — auditing In An electronic Environment - Central Excise - TRADE NOTICE: 1/2009(CEX)

OFFICE OF THE COMMISSIONER OF CUSTOMS CENTRAL EXCISE: HYDERABAD - IV COMMISSIONERATE: POSNETT BHAVAN: RAMKOTI: TILAK ROAD : HYDERABAD C. No. V/8/1/2008 Tech DATED: 2.1.2009 TRADE NOTICE: 1/2009(CEX) Sub. Cex : Computer Assisted Audit Programme (CAAP) - auditing In An electronic Environment : Regarding. 1. The trade is informed that Computer Assisted Audit Programme (CAAP for the sake of brevity) Centre has been set up in the Head Quarters Audit Section for the purpose of conduct of audit in respect of those assessees who use a computer to record their business Transactions/activities and keep such data in electronic form. The following information is provided to the Trade for creating awareness and facilitating working of CAAP. (i) The Departmental Audit under CAAP will involve examination and analysis of business (private) records that are maintained electronically. Under CAAP, all or a part of audit could be completed using electronic records. Trained in auditing of electronic records, the Central Excise Officers who shall conduct Computer Assisted Audit shall use commercial and custom software on secure departmental computers for this purpose. (ii) Computer Assisted Audit saves time both for the assessee and department at it takes much shorter time than manual audits as most of the records are made available to the auditor in an electronic format which are examined using a secure departmental computer. It also saves paper as an electronic audit reduces the amount of paper normally needed, produced or photocopied during an audit. The auditors spend less time at assessee's premises. (iii) The procedure followed in the Computer Assisted Audit is that Computer Assisted Audit starts with a meeting between the CAAP Auditor and assessee's accounting/systems staff. During the meeting, the CAAP Auditor s would request several information to determine the feasibility of a Computer Assisted Audit: The questions are part of Computer Assisted Audit feasibility survey and include information about - the commercial software used by the CAAP auditor is designed specifically to never alter any audit records (2) In this regard, the Trade is also advised to refer Part-Ill of Chapter-VI of Central Board of Excise Customs' (CBEC s) Central Excise Manual detailing Supplementary Instructions on Computer Assisted Audit Programme. (3) For any further details/information on Computer Assisted Audit Programme, inquiries can be made at the below given address where CAAP Laboratory of your jurisdictional Central Excise Commissionerate is stationed. Office of the Commissioner of Central Excise Audit Wing (CAAP lab), Head Quarters, Hyderabad-IV Commissionerate, Posnett Bhavan, Ramkoti, Tilak Road, Hyderabad (RAM PARKASH) COMMISSIONER