Auditing around the computer is appropriate in
situations where significant computer controls are not required
. For example, auditing around the computer can be used when computers are only used for calculation purposes.
When should you audit a computer?
Auditing around the computer is appropriate in
situations where significant computer controls are not required
. For example, auditing around the computer can be used when computers are only used for calculation purposes.
What is the use of computer in audit?
Computer Assisted Audit Techniques are used in performing several auditing measures and processes, including: Analytical procedures, as: when discovering major irregularities or variations.
Implementing modules to obtain data for audit testing
. Testing of application controls, as in evaluating the running of a program.
What are the advantages in using computers for auditing?
- 1) Reduce the duplication of effort. …
- 2) Improve the accuracy of data captured during an audit. …
- 3) Gather more information during every audit. …
- 4) Eliminate ambiguity in audit reports. …
- 5) Demonstrate compliance throughout the audit trail. …
- What you should do now.
What do you understand by auditing around the computer and auditing through the computer?
Differentiation between auditing through computer and around computer Auditing through the computer Scope Auditing around the computer Process of evaluating or auditing Definition
Process of evaluating a client’s client’s software and hardware computer controls to determine the to determine the reliability of existence
…
Can you explain the computer audit process?
Computer auditing is a systematic and logical process that follows a risk based approach to
determine whether the information systems of an entity
, including its detailed information technology processes, controls and activities, will achieve its IT objectives and will thereby ultimately enable the organisation to …
What are the types of online computer system audit?
- online/real time.
- online batch.
- online memo update.
- online inquiry.
- online download/upload.
How do you audit a computer system?
- Review. In this phase, the system auditor tries to comprehend the management practices and various functions used at multiple levels of the IT hierarchy. …
- System Vulnerability is Assessed. …
- Threats are Identified. …
- Internal Controls are Analyzed. …
- Final Evaluation.
What are objectives of auditing?
The objective of an audit is
to express an opinion on financial statements
. The auditor has to verify the financial statements and books of accounts to certify the truth and fairness of the financial position and operating results of the business.
What are the advantages of audit?
- Compliance. Obviously this is one of the main reasons to conduct an audit: to meet the statutory requirements and regulations in your industry. …
- Business Improvements / System Improvements. …
- Credibility. …
- Detect and Prevent Fraud. …
- Better Planning and Budgeting.
What are some common types of CAATs?
CAATs include many types of tools and techniques, such as
generalized audit software
, customized queries or scripts, utility software, software tracing and mapping, and audit expert systems.
What are the qualities of an auditor?
- They show integrity. …
- They are effective communicators. …
- They are good with technology. …
- They are good at building collaborative relationships. …
- They are always learning. …
- They leverage data analytics. …
- They are innovative. …
- They are team orientated.
What type of auditors are there?
- Internal audit. Internal audits take place within your business. …
- External audit. An external audit is conducted by a third party, such as an accountant, the IRS, or a tax agency. …
- IRS tax audit. …
- Financial audit. …
- Operational audit. …
- Compliance audit. …
- Information system audit. …
- Payroll audit.
What is the meaning of auditing around the computer?
The term auditing around computer means that
internal software of computer is not audited but that the inputs to the computer are agreed to the expected outputs from the computer
.
Who can audit balance sheet?
If the computerized accounting system is coupled with effective internal control, detailed vouching can also be dispensed with. In such organizations,
auditor
conducts the balance sheet audit. The balance sheet audit includes the following: 1.
Which box is auditing around the computer?
White box
approach is where auditor audits through the computers, where software/ program used to process the transactions is tested and reliance is placed on such testing results.
