Home › CA Final › financialreporting › Accounting and Technology — ICOFR-ERP Integration, Inventory, Derivatives & Segment Automation › New Way Ltd. wants to (i) define enforceable-rig…
New Way Ltd. wants to (i) define enforceable-rights criteria for identifying contracts under Ind AS 115 and (ii) assign unique identifiers and link transactions to specific contracts. The chapter's recommended automation BEST includes:
AAn integrated contract management system + accounting integration + OCR + ML/NLP for extraction and classification, with workflow rules that automatically tag contracts and assign unique IDs
BSingle email folder for all contracts with manual indexing
CA purely paper-based contracts cabinet to preserve original signatures
DExcel only with no integration to operational systems
Answer & Solution
Correct answer: A. An integrated contract management system + accounting integration + OCR + ML/NLP for extraction and classification, with workflow rules that automatically tag contracts and assign unique IDs
The chapter prescribes a contract management system integrated with sales/CRM/project systems, with OCR + ML/NLP for extraction and rules to tag and assign unique IDs. Paper-only or email-only fails on enforceability traceability and Ind AS 115 audit needs.
Related questions
Which of the following is the MOST defensible position on whether automation can fully repA listed company's ICOFR weakness states 'no procedures to ensure all postings have occurrIdentify the BEST way to use spreadsheet automation under Ind AS 109 derivative classificaWhich of the following is the WEAKEST automated control to detect potential inventory frauA Responsibility Assignment Matrix (RAM/RACI) is configured into the ERP for ICOFR. The BEIdentify the MOST appropriate use of the ERP audit trail comparing 'transaction date' vs 'An ERP integrates ICOFR for inventory. Which control combination BEST addresses the risk tAn entity sells broadband, voice and modem in various combinations. To codify Ind AS 115 d