Python in Audit - Dividend Income Testing
Originally published: 08/12/2020 10:58
Publication number: ELQ-12067-1
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Python in Audit - Dividend Income Testing

Dividend Income Testing using python

Dividend income testing generally starts with selecting samples of dividend income received in a financial year and then checking online reliable website such as yahoo finance to confirm the dividend rate on the selected date. The expectation is client dividend rate will match with auditor tested rate.

This is repetitive process require labour work, where all samples are checked against online dividend rate copy and paste into excel for documentation, taking the difference between auditor rate and client rate, and if there is a difference, is it more material etc.

The attached code aims to create a working paper for you, all you need is to provide client provided schedule that lists all investments, the dividend rate, date etc. and it will create a working paper including differences, and highlight if the difference is above materiality.

A detailed explanatory video is attached it is highly recommended to view this video to see how to use the template. If you don't have local python installation you can use jupyter notebook, you can use any cloud-based notebooks such as google Colab to copy and paste first in the notebook cell and then run.

The code is provided for educational purposes, the author will not accept any liabilities, express or implied for any loss or adverse consequences, financial or non-finanaical.

This Best Practice includes
1 Jupyter Notebook Python Code in IPython format

Rizwan Ahmed Surhio offers you this Best Practice for free!

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Further information

To improve audit quality

Python libraries working as expected

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