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Highlighted
Level 1

Audit Trail Flaw

This post is coming from an auditor's view point when using the audit trail.

 

I came across this flaw after spending several hours searching for an invoice adjusted by the client that was tossing out retained earnings.

 

The audit trail has no way to filter for what was previous in another year and been edited into a current year.

The issue has arose when a client adjusted (edited and not deleted) an invoice that was in the 2017 Dec year end to March 2018. This tossed out retained earnings. So, after spending several hours tracking down this edit and chasing a couple of red herrings, I realized in Sage50, I would have just tossed on "Show Corrections" and the "Audit Trail" they have there is a journal entry made for every change, so I could have seen at the bottom of their General Ledger a reversing entry for this invoice and to whom. This type of function does not seem to exist in QBO.

 

In QBO if they adjust the invoice date to the new year there is no "This was the previous invoice date in the search". So in essence if they adjust the invoice we need to know which invoice it is or go through every single invoice in the new year.

 

This seems like a major flaw in an "audit trail".

 

 

Now I understand we can "lock" previous years, but this is not always a practical solution for some clients. Or these changes could have been made between the "initial data pull" and the entry of year end adjustments and subsequent lock.

 

I am new to QBO and am still learning the ropes, but this seemed like a serious issue, as this was one invoice, I have had multiple clients back date dozens of sales and invoices before and if they were on QBO I would have been spending hours on fixing this.

 

Additionally, printing the Audit Trail "Comparison" is flawed as well, it only prints essentially whats on the screen (has the scrolling bar on the right of the PDF), this comparison would be very helpful to have for supporting documents, but in its current printable form is useless.

 

And when printing the audit trail as a whole, does not take into account the sorting being applied to the audit trail and sorts it back to the original report.

 

Lastly, I am vaguely aware of the prior year locking function, but this should not be the "well just use that to prevent these issues" crutch for a flawed system.

 

Hope this helps you improve your system as I expect cloud bookkeeping to be the norm going forward in the industry and the old dogs will need to adapt.

Solved
Best answer January 30, 2019

Best Answers
Highlighted
Level 10

Audit Trail Flaw


@ahodgson wrote:

 

The audit trail has no way to filter for what was previous in another year and been edited into a current year.

The issue has arose when a client adjusted (edited and not deleted) an invoice that was in the 2017 Dec year end to March 2018. 

 


 

There is no such flaw in the QBO Audit Log

 

Every change made to a transaction is logged, including a date change. It makes no difference what year is used in the date.

 

Of course if an invoice is deleted you won't see it any reports, but you can filter the audit log for deleted/voided transactions, in whatever time period you want

 

 You can also run transaction reports where you can filter using these dates:

Create Date = Last year

Last Modified Date = This Year

 

 

View solution in original post

6 Comments 6
Highlighted
Moderator

Audit Trail Flaw

Sending good vibes to you, ahodgson.

I appreciate the details you've provided and taking the time to post here in the Community. It's my priority to get you pointed in the right direction.

 

I can definitely see how this feature would be useful, I would highly recommend submitting feedback and suggestions regarding this option to our product developer. This lets us know what enhancements you'd like to see in the program soon.

 

I can pass along all the feedback you have to the appropriate channels so you're able to reach a point of resolution as quickly as possible. We aren't able to tell when a feature will be available. We share recent happenings and future developments on our blog. Through this, you're able to get the latest news about QuickBooks and what our Product Care Team is working on.

 

You may find these articles helpful:

 

 

As always, you can also reach out to our Customer Care agents if you need additional help.
 
Here's how you can reach them:

 

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose your QuickBooks Product.
  3. Select your QuickBooks version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

I'll be here if you have additional questions. You have a wonderful day.

Highlighted
Level 10

Audit Trail Flaw


@ahodgson wrote:

 

The audit trail has no way to filter for what was previous in another year and been edited into a current year.

The issue has arose when a client adjusted (edited and not deleted) an invoice that was in the 2017 Dec year end to March 2018. 

 


 

There is no such flaw in the QBO Audit Log

 

Every change made to a transaction is logged, including a date change. It makes no difference what year is used in the date.

 

Of course if an invoice is deleted you won't see it any reports, but you can filter the audit log for deleted/voided transactions, in whatever time period you want

 

 You can also run transaction reports where you can filter using these dates:

Create Date = Last year

Last Modified Date = This Year

 

 

View solution in original post

Highlighted
Level 15

Audit Trail Flaw

@Malcolm Ziman is correct; you have two Date Controls that matter. For instance, if you know the invoice number, set the Date to All = all transactions within this date range, and the Modified to All = any changes ever made, then filter on that one NUM as that invoice.

Highlighted
Level 1

Audit Trail Flaw


@Malcolm Ziman wrote:

@ahodgson wrote:

 

The audit trail has no way to filter for what was previous in another year and been edited into a current year.

The issue has arose when a client adjusted (edited and not deleted) an invoice that was in the 2017 Dec year end to March 2018. 

 


 

There is no such flaw in the QBO Audit Log

 

Every change made to a transaction is logged, including a date change. It makes no difference what year is used in the date.

 

Of course if an invoice is deleted you won't see it any reports, but you can filter the audit log for deleted/voided transactions, in whatever time period you want

 

 You can also run transaction reports where you can filter using these dates:

Create Date = Last year

Last Modified Date = This Year

 

 


Hello Malcolm,

 

When I said flaw, I felt it was something that makes the Audit Trail less useful and therefore less used. Not a flaw in the sense that the Audit Trail was not logging absolutely every change.

 

The last bit that you mentioned is exactly the fix I was looking for and didn't notice that there was filter for Year Created, if they simply added this filter to the audit trail it would solve the issue I was mentioning.

 

Thanks,

Adrian

Highlighted
Level 2

Audit Trail Flaw

I'm also seeing an audit trail flaw, kinda.  Or maybe its just a "QB sensitivity issue"?  Curious if anyone has seen what I'm about to describe.  Ultimately it seems to come down to a "distinction without a difference" but some of my users are bothered by it!  NOTE:  Using QB Enterprise Desktop

 

So here's the deal:

User A sets up an invoice, saves, and closes.  The next day, User B accesses the same invoice to attach a copy of the Customer's PO.  Or maybe User B corrected the spelling of something.  Minor stuff that has no material impact on the transaction --- the financial aspects of the transaction --- whatsoever.

 

When the audit trail is run, of course, it will show what User A originally set up and also it will indicate there's been a change by User B.  No problem so far. 

 

However, the link to the Income account under the original User A version shows the full Parent and Sub-Account name (e.g., 4000.00 REVENUE:  4010.00 Product Sales).  What the audit trail shows as a change made by User B is that now the full Parent and Sub-Account name are abbreviated, so the report indicates the change that occurred is that now the Item used in the original invoice by User A is linked to "4010.00 Product Sales"

 

Distinction without a difference? 

 

Ultimately the target income acc't is the same (4010.00 Product Sales) except we're not sure why QB would even register this as some sort of change when (a) there was no change to the Item at all; and (b) its not really a change!

 

I've checked the chart of accounts and drilled down to my income, COG, and inventory accounts and thankfully not seeing any duplicates or other mischief that would set off alarm bells.

 

Can anyone explain?  I think its more of a curiosity question at this point.  Thank you kindly!

Highlighted
Moderator

Audit Trail Flaw

Hello there, @Jain.

 

Thanks for providing detailed information about your concern. 

 

QuickBooks is a recording tool in which all the information is based on user input or from 3rd party apps with user permission.

 

Thus, the Audit Trail serves as a record of all the changes made on a specific transaction. It lists each accounting transaction and any additions, deletions, or modifications that affect that transaction and who made such changes. 

 

To know more on how to customize the Audit Trail report, you can use this article as a reference: Customize reports in QuickBooks Desktop

 

Let me know in the comment section if there's anything I can help you with. I'd be here for you. Have a great day!

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