We are using Navision.
We have noticed that Nav allows renaming of GL account numbers and updates all history too.
Isnt this an issue for the audit? Is this according to accounting standards?
One of the questions which never grows old. And most of the answers are already given in this post:
As to this being according to accounting standards or an issue for the audit, then that's always an issue. Which is why ALL CHANGES to the chart of accounts always should be done by accounting professionals. NOT it professionals.
The practice of changing a G/L account by renumbering is often done when a company decides to reorganize they chart of account. A reason for doing this could bound to changes in local legislation/government requirements, a merger with or acquisition by a different company, or simply by recommendation by their auditor or finance department.