Competent perso nnel Computer control input screens Pull down menu Computer

Competent perso nnel computer control input screens

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• Competent perso nnel. Computer control • input screens. • Pull -down menu. • Computer -performed validation tests of input accuracy. • Online based input controls for e-commerce applications. • Immediate error correction procedures. • Accumulation of errors in an error file. Batch Input controls Controls Definitions Financial Total Summary total of field amounts for all records in a batch that represent a meaningful total such as dollars or amounts. Hash total Summary total of codes from all records in a batch that do not represent a meaningful total Record count Summary total of physical records in a batch. Processing control Prevent and detect errors while transaction data are processed. Specific application processing controls are often programmed into software to prevent, detect, and correct processing errors. Output Control Focus on detecting errors after processing is completed , rather than on preventing errors. The most important output control is review of the data for reasonableness by someone knowledgeable about the output. Types of Auditing related to It System Auditing in Less Complex It Environments Auditing in More Complex It Environments Auditing without relying on and testing automated controls embedded in computer application programs, which is acceptable when the auditor has access to readable source documents that can be reconciled to detailed listings of output or when sufficient no automated controls exist. Relying on manual controls. The use of computers creates the following unique audit considerations: Limited reliance on automated controls . Access to master files. Risk of computer viruses. Auditing by testing automated internal controls and account balances electronically, generally because effective general controls exist. As organizations expand their use of IT, internal controls are often embedded in applications that are available only electronically . In the test data approach, auditors process their own test data using the client’s computer system and application program to determine whether the automated controls correctly process the test data. When using the test data approach, auditors have three main considerations: A) Test data should include all relevant conditions that the auditor wants tested . B) Application programs tested by auditors’ test data must be the same as those the client used throughout the year. C) Test data must be elimi nated from the client’s records. Auditors often use auditor-controlled software to do the same operations that the client’s software does, using the same data files ….. Why? Impact of Information Technology on the Audit Process 1. Effects of General Controls on System-wide Applications Ineffective general controls create the potential for material misstatements across all system applications, regardless of the quality of individual application controls.
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