The short answer
After a supported Xero sync, Datplan Audit Analytics can review a selected accounting population using Benford's Law, exceptional values, period-end activity, round amounts, possible duplicates, post-period reversals and rare high-value counterparties. The same seven analyses are also available for QuickBooks.
Each result is an indicator for professional review. It is not a statement that fraud occurred.
What the seven Xero audit tests look for
| Test | What to review |
|---|---|
| Benford's Law | Unexpected first- or second-digit frequencies in a suitable numerical population. |
| Exceptional values | The largest values meeting the threshold chosen for the population and period. |
| Period-end activity | Transactions posted within the configured number of days around each month end. |
| Round amounts | Values close to the configured round-number multiple and tolerance. |
| Possible duplicates | Records sharing counterparty, date and amount, with optional reference matching. |
| Post-period reversals | Opposite-value entries matching within the bounded post-period window. |
| Rare high-value counterparties | High-value activity involving counterparties that appear only rarely in the selected population. |
Why Audit Evidence matters more than the colour of the chart
A useful audit analytics result has to be explainable. If a period-end column spikes or a duplicate group appears, the reviewer needs to know which Xero records created it. Datplan's Audit Evidence drill-down provides that transaction-level route.
The evidence view supports the next question—whether the record is expected, erroneous, duplicated, corrected, reversed, supported or genuinely unusual. That conclusion still belongs to the professional reviewer.
A practical Xero fraud-risk review workflow
- Sync the correct Xero organisation. Confirm the client, reporting period and relevant population before analysis.
- Select the audit question. Use the test that matches the assessed risk rather than running every chart without purpose.
- Set the parameters. Choose the relevant period, thresholds, tolerances or matching options.
- Review the pattern. Look for concentrations, outliers or unexpected groups.
- Drill into Audit Evidence. Inspect the records that actually produced the exception.
- Corroborate in Xero and the audit file. Review source documents, explanations, controls and other evidence where the engagement requires it.
How this relates to ISA (UK) 240 and ISA (UK) 315
The FRC's ISA (UK) 240 (Revised March 2026) becomes effective for periods commencing on or after 15 December 2026. The revision strengthens and clarifies fraud responsibilities and risk assessment. ISA (UK) 315 remains the relevant risk-identification and assessment standard and is not a new 2026 requirement.
Datplan's tests can support those processes by turning a Xero population into reviewable exceptions. The standards do not prescribe these seven tests, and the tests do not replace the wider audit procedures.
Important limits for Xero audit analytics
- Benford's Law is not appropriate for every dataset and never proves fraud on its own.
- A duplicate candidate can be a legitimate repeated amount or recurring transaction.
- A round amount can be commercially normal.
- A reversal can be a valid correction.
- A rare counterparty can be entirely expected.
- The selected Xero population, completeness and source-system context still have to be understood.
Use the Audit Analytics overview for the full seven-test contract or compare the equivalent QuickBooks workflow.
Frequently asked questions
What audit analytics are available for Xero in Datplan?
Benford's Law, exceptional values, period-end activity, round amounts, possible duplicates, post-period reversals and rare high-value counterparties.
Can I see which Xero records caused an exception?
Yes. Each analysis has Audit Evidence drill-down to the underlying records used by the selected test.
Does Datplan replace Xero's own audit history or source documents?
No. Datplan analyses the selected accounting population. Source-system history, invoices, bills, supporting documents, explanations and other audit evidence remain separate and may still be required.
Can Xero Audit Analytics make an audit ISA 240 compliant?
No. The analyses can support fraud-risk procedures and evidence review, but the auditor remains responsible for the risk assessment, procedure design, investigation, documentation and conclusions required by the engagement.