3air_im08 - 177 CHAPTER 8 Auditing in a Computer...

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CHAPTER 8 Auditing in a Computer Environment LEARNING OBJECTIVES Review Checkpoints Exercises and Problems Cases 1. Explain how a computer accounting system differs from a manual accounting system. 1, 2 2. List and discuss additional matters of planning auditors should consider for clients who use computers. 3, 4 36, 37, 38 3. Describe how the phases of control risk assessment are affected by computer processing. 5, 6, 7, 8 55 4. Describe and explain general control procedures and place the application control procedures covered in Chapter 11 in the context of computerized "error checking routine." 9, 10, 11, 12, 13, 14, 15, 16 48, 49, 50, 51, 52, 53, 54 56 5. Describe the characteristics and control problems of micro- minicomputer installations. 17, 18, 19, 20 57 6. Explain the differences among auditing around the computer, auditing through and with the computer. 21 7. Explain how the auditor can perform the test of controls audit of computerized controls in a simple computer system. 22, 23, 24, 25 8. Describe the use of generalized audit software. 26, 27, 28, 29, 30, 31, 32 9. Describe how the microcomputer can be used as an audit tool. 33, 34, 35 POWERPOINT SLIDES PowerPoint slides are included on the website. Please take special note of: * Effect of Computer Processing Evaluation Approaches of Computer Systems 177
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178 SOLUTIONS FOR REVIEW CHECKPOINTS 8.1 Management can meet its responsibility for establishing and maintaining an internal control system and assist the auditors at the same time by: (1) ensuring that documentation of the system is complete and up to date, (2) maintaining a system of transaction processing that includes an audit trail, and (3) making computer resources and knowledgeable personnel available to the auditors to help them understand and audit the system. 8.2 The important differences between manual and computer accounting systems are in these areas: (1) transaction trails, (2) uniform processing of transactions, (3) segregation of functions, (4) potential for errors and irregularities, (5) potential for increased management supervisions, and (6) initiation or subsequent execution of transactions by computer. 8.3 Additional planning times that should be considered when computer processing is involved are: * The extent to which the computer is used in each significant accounting application. * The complexity of the computer operations used by the entity, including the use of an outside service center. * The organizational structure of the computer processing activities. * The availability of data. * The computer-assisted audit techniques to increase the efficiency of audit procedures * The need for specialized skills. 8.4 General characteristics of transactions that are typically computerized: Frequent, repetitive, large number.
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3air_im08 - 177 CHAPTER 8 Auditing in a Computer...

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