Lecture_09_S22009 - The University of Sydney ACCT3014 -...

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The University of Sydney ACCT3014 - Auditing and Assurance Semester 2, 2009 Week 9 Lecture Auditing in an IT Environment Part 2 z Audit Procedures/CAATs Additional Optional Reading : ICAA Audit Manual, pp. 220-223 and 234 2 Auditing in an IT Environment z Planning (covered in last lecture): level of IT dependence / IT business related risks IT related IC strengths and weaknesses z Audit Evidence (covered in today’s lecture): use of CAATs for z tests of controls z substantive testing
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3 Tests of Controls: Manual General and Application Controls There is no change in the procedures / approach to testing: inquiry inspection observation Re-performance 4 Tests of Controls: Programmed Application Controls A problem arises due to data being stored on magnetic media and the nature of programmed controls ( e.g. self-checking digit, range check, validity check, field check ) which requires specific techniques, generally termed auditing through the computer which utilise Computers Assisted Audit Techniques (CAATS). Techniques include: test data * integrated test facility (ITF) parallel simulation program code review
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5 Tests of Controls: Test Data Approach z This involves testing the controls by: entering test transactions that should be accepted (no errors) and seeing that they are processed correctly entering test transactions that should be rejected (errors) and seeing that they are rejected for the right reasons z To avoid contaminating the clients records, test data testing is generally performed using copies of the client’s master files 6 z Integrated Test Facility (ITF) is similar to Test Data technique but allows testing to occur without the client personnel knowing (i.e. continuous check/ processing of ‘test data’) add a fake entity, such as a ‘dummy company’ or ‘dummy customer’ record to the client’s system process real transactions against it to check that they are processed correctly Tests of Controls: Test Data Approach (cont.)
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This note was uploaded on 11/18/2010 for the course ACCT 3014 taught by Professor - during the Three '09 term at University of Sydney.

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Lecture_09_S22009 - The University of Sydney ACCT3014 -...

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