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AUDIT-IN-CIS-ENVIRONMENT.pdf - AUDIT IN A CIS ENVIRONMENT...

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AUDIT IN A CIS ENVIRONMENTPSA 401; PHILIPPINE AUDITING PRACTICES STATEMENTS (PAPS)1001,1002, 1003, 1008, 1009, 1013
LEARNING OBJECTIVESKnow why the auditor needs to consider an entity’s use of ITEnumerate the unique characteristics of IT environmentLearn the two basic data processing methodsLearn the two levels of IT controlsGive examples of general IT controlsGive examples of application IT controlsUnderstand the advantages and disadvantages of CAATsLearn the types and examples of audit softwareLearn the approach in testing IT controls
INTRODUCTIONEFFECT OF ITCISComputer Information SystemsFor purposes of International Standards on Auditing, a CIS environment exists whena computer of any typeor size is involved in the processingby the entity of financial information of significance to the audit, whetherthat computer is operated by the entity or by a third party.
WHY DOES THE AUDITOR NEEDS TO CONSIDER THE USE OF IT?
INTRODUCTIONEFFECT OF ITThe use of IT does not change the auditor’s overall objectives in accordance with PSA.For purposes of International Standards on Auditing, a CIS environment exists whena computer of any typeor size is involved in the processingby the entity of financial information of significance to the audit, whetherthat computer is operated by the entity or by a third party.
EFFECT OF ITThe explosive growth in information technology (IT) capabilities and the desire of businesses of all sizes to obtaincompetitive advantage have led to a dramatic increase in the use of IT systems to originate, process, store andcommunicate information. Today, employees at all levels use IT systems in their daily activities. Electronic recordshave replaced traditional paper documents.IT USEpresents benefits as well as risks to an entity’s internal control.An auditor’s clients use IT to achievetheir objectives, such use affects internal control and the auditor should expect to encounter IT systems andelectronic records rather than paper documents.

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Term
Fall
Professor
Maxine
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