Skip to content

CA Final · Financial Reporting · Accounting and Technology

Rohan Pharma Ltd migrates its ledgers to a new ERP. During cutover, balances of trade receivables are mapped to new customer codes. Which procedure best provides assurance that the financial data was completely and accurately migrated?

Reconciling control totals and record counts between the old and new systems, and investigating any differences, gives assurance of completeness and accuracy of migrated data. Vendor assurances, usability tests or cost comparisons do not test whether balances were transferred correctly.

  1. AReconcile control totals and record counts of old and new systems and investigate differencesCorrect
  2. BRely on the vendor's statement that migration was successful
  3. CTest only the user interface screens for usability
  4. DCompare the new system's licence cost with budget

Explanation

Data migration risk is incompleteness or inaccuracy of transferred data. Reconciling control totals and record counts between the legacy and new systems, and investigating differences, directly tests this. A vendor assertion is not evidence, and usability or cost checks do not address data integrity.

Did you get it right without looking?

One question tells you little. A timed set on Accounting and Technology shows your real accuracy, how long you take and where you lose marks.

Practise Accounting and TechnologyFree diagnostic mock

More Accounting and Technology questions