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CA Final · Financial Reporting · Accounting and Technology

Arjun Retail Ltd. uses robotic process automation (RPA) bots to post recurring vendor invoices after matching them with purchase orders. During the year-end close, the CFO wants to ensure the bots do not create misstatements. Which control is most effective in addressing the risk that a bot continues to post entries using outdated matching rules after the company changes its credit-terms policy?

Formal change management, with testing and approval of bot logic before deployment and periodic review of bot configuration, is the most effective control. It makes sure automated posting rules reflect the current credit-terms policy, whereas removing audit trails or independent review would worsen the risk.

  1. AFormal change management with testing and approval of bot logic before deployment, plus periodic review of bot configurationCorrect
  2. BIncreasing the number of bots so that errors are spread across processes
  3. CDisabling the audit trail of the bots to reduce data volume
  4. DAllowing the bot developer to approve and deploy changes without independent review

Explanation

Outdated rules arise from unmanaged changes in bot logic. Change management with testing, authorisation and periodic configuration review ensures bot rules reflect current policy. Spreading errors, removing logs or removing segregation of duties would weaken control.

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