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The Impact of Information Technology On The Audit Process
The Impact of Information Technology On The Audit Process
The Impact of Information Technology On The Audit Process
Chapter 12
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Computer controls
replace manual
controls
Higher-quality
information is
available
Reliance on Unauthorized
hardware and access
software
Systematic
vs.
Data loss random errors
Visibility of
audit trail
Lack of
traditional Detection risk
authorization
Reduced
human
involvement
©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 12 - 7
Need for IT Experience and
Separation of Duties
Reduced separation of duties
Application General
controls controls
Typical test
strategies
Online Controls:
User ID control
Password control
Separate add-on
security software
Physical Controls:
Keypad entrances
Badge-entry systems
Security cameras
Security personnel
©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 12 - 16
Backup and Contingency
Planning
Offsite storage of critical files is a key
element to a backup and contingency plan
Input Output
controls controls
Processing
controls
©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 12 - 19
Input Controls
Total of codes
Hash total from all batch
records
Total of records
Record count
in a batch
Audit though
MORE the computer
Parallel
Test data
simulation
©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 12 - 26
Auditing Around and Through
the Computer
Control test
Contaminated results
master files
Control test
results
Auditor-predicted results
Auditor makes of key control procedures
comparisons based on an understanding
of internal control
Differences between
actual outcome and
predicted result
©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 12 - 31
Parallel Simulation
Auditor Client
results results
Outsourced e-Commerce
IT systems