Table of Contents
How auditing can be carried out in a Computerised environment?
The audit process for a computerized accounting system involves five main steps: conducting the initial review (planning the audit); reviewing and assessing internal controls; compliance testing (testing the internal controls); substantive testing (testing the detailed data); and reporting (conclusions and findings).
How auditing in computerized environment is beneficial?
Uses or Benefit of Computerized Audit Greater accuracy : the chances of arithmetical errors and human errors are reduced to minimum. Greater economy: under the mechanized accounting system, work can be done with minimum staff, with minimum cost. Better records: records prepared by machines are neat and clean.
What auditing means?
Definition: Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions. It is done to ascertain the accuracy of financial statements provided by the organisation.
What type of auditors are there?
There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits. External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.
What are some common types of CAATs?
CAATs include many types of tools and techniques, such as generalized audit software, customized queries or scripts, utility software, software tracing and mapping, and audit expert systems.
What are the qualities of an auditor?
What are the qualities of a good auditor?
- They show integrity.
- They are effective communicators.
- They are good with technology.
- They are good at building collaborative relationships.
- They are always learning.
- They leverage data analytics.
- They are innovative.
- They are team orientated.
What are the advantages and disadvantages of Computerised auditing?
Advantages & Disadvantages of Computerized Accounting
- Advantage: Simplicity.
- Advantage: Reliability.
- Advantage: Cost-Effectiveness.
- Advantage: Ability to Collaborate.
- Disadvantage: Potential Fraud.
- Disadvantage: Technical Issues.
- Disadvantage: Incorrect Information.
What are the 4 types of auditors?
The most common types of auditors are: External Auditor: The most common type of auditor is the external auditor….Being a specialized field of audit, Forensic auditors must possess expert knowledge in multiple areas:
- Investigative Auditing.
- Computer Science.
- Data Analytics.
- Machine Learning.
What to know about auditing in a computer environment?
AUDITING IN A COMPUTER ENVIRONMENTIn planning the portions of audit which may be affected by the clients environment the auditor should obtain an understanding of significance and complexity of computerised information system activities and the availability of data for use in the audit. 6.
How does audit under computerised information system ( CIS ) environment 4?
4 Audit under Computerised Information System (CIS) Environment 4.1 Introduction Information Technology throughout the world has revolutionized and dramatically changed the manner in which the business is conducted today. Computerization has a significant effect on organization control, flow of document information processing and so on.
Which is an example of a computer assisted audit?
Many answers referred to passwords and physical access controls – which are examples of general controls – and thus failed to gain marks. Computer-assisted audit techniques (CAATs) are those featuring the ‘application of auditing procedures using the computer as an audit tool’ ( Glossary of Terms ).
How does information technology affect the audit process?
The Appendix to ISA 300 (Redrafted) states ‘the effect of information technology on the audit procedures, including the availability of data and the expected use of computer – assisted audit techniques’ as one of the characteristics of the audit that needs to be considered in developing the overall audit strategy.