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Module+H+Slides+_IT+Auditing_ - Auditing and Information...

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Auditing and Information Technology Module H ACC 5320 – Professor Cannon
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Opportunity!
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Control Testing (whether General or IT) Audit objectives are still exactly the same: 1.Obtain understanding of internal controls 2.Identify key controls to rely on 3.Test operating effectiveness of those controls
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Customer Order Customer Order Transacti on File Sales Invoice Shipping Documen t Customer Master File Inventory Master File Sales Transacti on File Processing of Sales Transactions What could go wrong? Computerize d Processing System
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Input errors Systematic rather than random processing errors Lack of paper audit trail Computer access issues Data loss What Could Go Wrong?
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IT General Controls (ITGCs) vs. IT Application Controls (ITACs) iPhone Analogy
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General Controls (ITGC) Relate to all applications of a computerized information system ITGCs are pervasive Deficiencies will affect processing of various types of transactions Similar to control environment in the COSO framework MODH-7
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Information Technology Application Controls (ITAC) Relate to specific types of transactions and operating cycles o E.g., The Revenue Cycle If ITGCs are weak, ITACs can’t be relied on o Similar to control environment and control activities (COSO) MODH-8
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ITGC Categories 1. Program development controls 2. Program change controls 3. Computer operations controls 4. Access to programs and data controls
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