Speaker 1: The relationship between the client and the auditor is very strong because the client never wants the auditor to get everything easily. So, this is how the client manipulates things in the accounts. He manipulates the figures in such a way that the auditor also gets confused. Sometimes he will hand-punch the figures along with the formulas. He will not put the formula anywhere. He will hand-punch the figures directly. He will not know where this figure is coming from and where it is going. Navigation becomes very difficult in financial statements. So, we have specially designed this tutorial in which we are going to discuss auditing tools, which you may not know before, but can bring a lot of boost in your effectiveness. With this, you can impress your manager, surprise your clients, and tell them that where are these things coming from? And they will also get worried that what have I done? You will also find the practice file of the tutorial in the description. And I hope that this will enhance your effectiveness a lot. So, let's start this tutorial. First of all, let's understand this practice file. We have three sheets here. Trial Balance, Notes, and Balance Sheet. Figures are going from the trial balance to the notes, which is our working. And figures are going from the working or notes to the balance sheet. Our purpose here is not to learn how to make financial statements, but to address the issues that I told you earlier, that how we can bring our effectiveness with auditing tools. You may already know some tools. The rest of the tools that I am going to share with you, I hope they will be very helpful for you. Many people have issues, and God willing, your issues will be cleared today with the help of auditing tools. Right? So, if we talk about trial balance, you will find this practice file in the description. In the first tool that we are going to discuss, let's say, we have a liability, Mr. Talha. So, we selected this. And I say that we want to find out where this Rs. 2 lakh is going. If you want to do this manually, and here we have very little data. Let's see how much we have here. There are about 54 items here. If we want to trace these, you know, it won't take us much time. We can do it. If we have data of thousands, it can be very difficult for us. We have to trace this Rs. 2 lakh. We don't have to do it manually. We have to do it with the formula. So, what can be done? See, this is the formula tab in Excel. We will click here. And here we have options for formula auditing. Trace Dependence, Trace Precedence. So, first of all, we will clear Trace Dependence. We will discuss the rest of the segments later. Where is this Rs. 2 lakh going? If we click on Trace Dependence, it has made an arrow that this Rs. 2 lakh is going to the net amount. Then we will come here. Then again go to the formula. And go to Trace Dependence. So, here you see, it has made a small sheet or a small icon with an arrow. You will click on the arrow. We will click here. And then click here, where it has told us where this Rs. 2 lakh is going. Double click here. Otherwise, click OK. When you click OK, it is telling us that it is coming here. This is Mr. Talha. So, Rs. 1,08,000 is made here. Here also, see here. This one. Here, if you see, there is also a link for trial balance. And the figure of Rs. 1,00,000 has also been punched. I will escape. What does this mean? This means that the same thing that I told you in the start, that if the client does not want to tell us anything, or wants to tell us, it says that if it takes more time, then it will hand-punch the figure. Okay. So, how can we find out? We will also see that. Okay. Which one should we take ahead? Where is this Rs. 1,00,000 coming? So, obviously, it is being added here. And where can we trace this? Go back to the formula. Otherwise, we have short key. Alt-M. Alt-M. And here, D. Okay. We did Alt-M-D. So, here again, it gave us a short key icon. Double clicked. So, here it is telling us that let's click on OK. It is telling us that this figure is going to the balance sheet. So, let's see that we take the trial balance. And then we come to the notes. Then we come to the balance sheet. Okay. While we are in the notes, we also have to see the figure of Rs. 1,00,000. Nothing to be worried about. What are we going to do now? Now, let's see, for example, where is this capital coming from? Earlier, what we did was we saw the figure from the trial balance and brought it to the end. Now, what are we going to do? We will see its precedence. Earlier, we saw the dependent. Now, we will see the precedent. Go back to the formulas. Now, we will see the precedent. What are we going to see? In the notes, we have given it 1. I have actually created this so that I can explain it to you. We clicked on trace precedent. And see, it has given us a small icon like this. Let's double click. Then click on it and press OK. Here, it has told us that this one. This cell. This is the first arrow. So, don't confuse it. The remove arrow also starts from there. But, it has told us that the total capital is coming from here. There are 3 items coming here. Share capital, share premium, profit and loss. Now, what do we do? Let's find the share premium. Where is it coming from? Let's go back to the formulas. Trace precedent. Double click here. Then click on OK. Here, it has shown us. Where is it? This amount. In the second row. It is around 8 million. So, it has shown us this amount. The share capital is coming from here. So far, we have understood two things. I would like to tell you about one more shortcut. First, let me tell you how to remove the arrows. There are two ways. Either click on remove arrows. Otherwise, press CTRL-S. If you save, then automatically it will be removed. Now, let's talk about shortkeys. Dependents and precedents can be seen with the help of shortkeys. First, I will write the formula here. Then, I will guide you. For example, we want to know about investments. Where is this 25,000 coming from? What are its precedents? Press CTRL-SQR. It is opening. This is the square bracket. This is 25,000. If we want to go back, press F5. This shortkey is very useful in our sector. This is clear. Now, let's move forward. This is very important. For example, we are sitting here. Let's talk about profit and loss. In the formula bar, there are three links. F55, F47 and B71. If we want to stay in this sheet and see the value of these links, can we find it out? Yes, we can. Click on formula and then evaluate formula. We have to click on evaluate three times. Then, we will reach the values one by one. First of all, let's click on evaluate. It shows the value of the first link. 4792101. Clear. If we click on evaluate again, it shows the value of the second link. B71. If we click on the third link, it will net both of them. We clicked on evaluate. It netted both of them. If we click on evaluate again, it shows the value of the link on the third link. Look at this. 220000. How do we know whether it is correct or not? Let's check it. I will close it now. I will go to formulas again. And then evaluate formula. You have to look at it carefully. Now, we will click on dependence and precedence. It can also work here. We will not click on evaluate. We will step in. First, we stepped in. And it showed us the value of F55. Look at this. 4792101. After the first step in. Step in means where the first link was generated from. We will step out. It brought us back to profit and loss. Then if we step in, it will take us to B71. We stepped in. 12682. I stepped out again. Now, we will go to the last figure. And what are we going to do now? Sorry. We don't want to evaluate. We have to evaluate. Now, we will step in. It will take us to the last figure. 220000. It is clear. We will step out and close it. This point is clear. Now, the most important. The client plays with us. How does he play? I will tell you. As I told you, while living in liabilities, there is a handpunch figure here. We don't know. Go and see one by one. Then see in the formula bar. These are Sunday creditors. There are handpunch figures here too. And this is where Mr. Khalid is also coming. If we have a lot of bulk data, how will we do it? We have a way to do it. Then we will highlight it and make points and go to the client. Tell me the reason. Let's see. We will click on formulas. And then we are getting show formulas. When we click here, the whole sheet that is coming here, we have made all the formulas. For example, here is the share capital. Where is it coming from? Where is this profit and loss coming from? See this, the most important. What is it? A link is coming from the trial balance. And there is a handpunch figure of 50,000. F8 is coming. There is a handpunch figure of 100,000. This is coming from the trial. There is a handpunch figure of 7,800, 121,200. Add a column here. Write remarks here. Where is it coming from? The point is clear. In the same way, you can do it in the trial balance. Let's do the same in the balance sheet. Alt-M H There is no handpunch figure here. So if we want to remove it, you can untick show formulas. Come to the balance sheet, untick here too. The tricks I have told you These are the tricks I have told you. These are the auditing tools I have told you. These are going to be used a lot. With this, you can move around in the financial statements. If there is a handpunch figure, you can find it out. If you want to find it out while staying in the same sheet, don't go to the other sheet. Where is the link coming from? What values do they make? So you can find out all this. If you like this video, like it. Thank you so much. We will meet in the next tutorial. Thank you. Allah Hafiz.