In today‟s complex business environment, the importance of trial balance in an audit has to be gauzed not from the view point of arithmetical accuracy but the nature of transaction to be recorded which in fact have become very complex. The emergence of new forms of financial instruments like option and futures, derivatives, off-balance sheet financing, etc. have given rise to further complexities in recording and disclosure of transactions. A tallied Trial Balance may still contain errors of omissions like omission of certain entries, compensating errors, duplication of entries, etc. In an audit besides the tallying of a trial balance, there are also other issues like estimation of depreciation, valuation of inventories, etc. which still require judgment to be exercised the auditor. So responsibility of auditor will still remain even in an EDP environment.
(Further students are advised to mention the difficulties like loss of audit trail, complexities in using CAAT due to which the given statement does not hold true)