Auditing through the computer. What is a Computer Audit? (with pictures) 2019-01-21

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auditing through the computer

A transaction actually occurred i. The auditor still needs to obtain an understanding of the system in order to assess control risk and plan audit work to minimise detection risk. A portion of the audit trail is not tested. This no doubt increased the need for auditors to carryout an. Professional pronouncements issued by the Auditing Standards Board d. Details Category: Published: 01 September 2011 Hits: 16290 Advantages 1. Internal controls in a computer environment The two main categories are application controls and general controls.

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What is a Computer Audit? (with pictures)

auditing through the computer

The level of audit testing will depend on the assessment of key controls. D information system computer service center audit. Some technical knowledge is required. What it involves is for the auditor either using dummy data i. This is also known as dollar-unit sampling when values are in U. The applications were not fully integrated and test of transactions could still be effective using older methods. B processing real data through a test program and comparing the simulated and regular output after processing is complete.

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Computer Assisted Audits — Questions and Answers

auditing through the computer

For instance, the beginning balances on the receivables ledger plus the sales invoices processing run 1 less the cheques received processing run 2 should equal the closing balances on the receivable ledger. Relatively cheap to use once set up costs have been incurred; Disadvantages 1. D None of these answers is correct. D the client's staff can use it to perform audit-related tasks. Though, external auditors most times uses this technique to test the controls in simple applications, but, internal auditors more frequently uses auditing through the computer technique to ensure that errors that may not be easily detected from the output are discovered and corrected. These are a use of test data and the use of computer audit programs.

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Audit Chp. 8 Flashcards

auditing through the computer

Overcomes in some cases a loss of audit trail; 7. This total could also be printed out to confirm the totals agree. Due to the same reason, relying too much on this approach is not recommended for important aspects of the audit especially where assessed risk is high as this may result in ineffective audit and ultimately inappropriate audit opinion being expressed by the auditor. This is helpful for a standardization review, especially if a standard operating environment is sought. C Fictitious data must be excluded from output reports.

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Computer Assisted Audits — Questions and Answers

auditing through the computer

This may include reviewing resale certificates, exemption certificates, and sales invoices for a sales test, or purchase orders and purchase invoices for a purchase test. Which of the following computer assisted auditing techniques processes actual client input data or a copy of the real data on a controlled program under the auditor's control to periodically test controls in the client's computer system? Difficulties will be encountered in simulating a whole system or even a part of it. C application systems development audit. This log provides the technical parameters the software uses to select the best sample. A satisfactory outcome gives the auditor a degree of assurance that if that programme is used continuously throughout the year, then it will perform as required.

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Audit Through the Computer

auditing through the computer

The principle objective is to test the operation of application controls. In a non-computer assisted audit, the auditor would request various printed reports such as a detail general ledger, trial balances, sales journals, purchase journals, accounts receivables and accounts payable data. B The test must be announced. This data is then run on the computer using the program and the results are compared. Any concerns in this area should be addressed to the auditor. Using traditional audit techniques this risk would be very difficult to test. Use of audit software raises the visibility of the auditor in the eyes of the company.

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What is Audit around the computer?

auditing through the computer

An audit program establishes responsibility for each audit test by requiring the signature or initials of the auditor who performed the test. B involve reviewing input, processing, and output controls. It makes the audit more credible. All electronic data you provide will be verified by the auditor for completeness. Some auditors would dispute the need for this detailed knowledge to be gained. Can be used to find largest, smallest and average amount transactions rows.

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ADVANTAGES AND DISADVANTAGES OF COMPUTER AUDIT PROGRAMES

auditing through the computer

The database will make it easier for auditors to coordinate current audits and ensure they consider findings from prior or related projects. If the data is included with normal data, separate test data totals cannot be obtained. So what I understand is. Typically, the Computer Audit Specialist will request that you submit electronic data in a non-delimited, fixed width flat file format along with the record layout. I have also included an attached document which more thouroughly explains each of your question. This means that the auditor reconciles input to output and hopes that the processing of transactions was error-free. B throughout the audit at the beginning of each audit phase.

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