Computer-assisted Audits1 could be of two types as specified in IR297
(I)Systems audit and (II) Data download
A systems audit is the detailed analysis and evaluation of a complete accounts computer system - data entry to posting to financial accounts. It includes IRD talking to staff who have a day-to-day understanding of the computer programs and operations.
Data download - Where data from a client is analyzed using commercially available software.
MYOB and Xero accounting software both meet the requirements for keeping computer records electronically as set out in IR297a (Computer-assisted Audits), including approval to hold customer data offshore.
If storing records electronically, utilizing the ‘Attachments’ function available in both Xero and MYOB is advised allowing the customer to upload copies of invoices and other documents.
If the customer ends the subscription to MYOB or Xero, customers have to export/back up any data or documents to meet their record-keeping obligations. Customers can reactivate their account and access the data from MYOB & Xero if required.