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HMRC internal manual

Tobacco Products Duty

General Principles: Control objectives and potential risk areas: Accounting

Control objective: To ensure that:-
  • the trader’s accounting arrangements are satisfactory.    
      Potential risk area: Computers
  • Trader’s manual log book (ie his record of malfunctions and other exceptional occurrences);
  • Peripheral manual accounting arrangements;
  • Accuracy and completeness of input data;
  • Any manual gap between computer output and the duty computation;
  • The deliberate or accidental inclusion of programs which can conceal amendments to files, databases, accounting routines, etc;
  • Inadequate physical security or password protection allowing unauthorised access to files via terminals;
  • Computer system controlling production isolated from the sales system;
  • Non-standard transactions;
  • Transactions processed late or out of normal sequence, particularly at times of tax rate changes; and
  • Source data which may be deliberately corrupted or miscoded to ensure rejection and facilitate suppression from the computer system;
  • Duty on goods delivered during systems failures not being accounted for;
  • Failure to input the correct data on resumption of computer operations;
  • Loss of TPD data and no adequate backup.