Describe How an Auditor Might Use Through-the-computer

By fu_Roselyn427 10 May, 2022 Post a Comment

A Auditing around the computer is an audit approach to the test how reliable the computer processing system actually is and this done so without actually using the computer. Describe how an auditor might use through the computer techniques such as test data an integrated test facility parallel simulation or validation of computer programs to accomplish audit objectives relative to accounts payable.

Auditing In A Computer Based Environment

First the auditor will ask management to explain the discrepancy.

. In some cases the auditor will conduct more in-depth testing than in previous years when analytical procedures reveal a major discrepancy. Used mainly for substantive testing. Anticipate audit inquiries and requests.

Gathering audit evidence as part of an audit involves a mix of techniques that are used interchangeably. In this process the audiots input the transactions manually and compare their results with the clients computer processing and investiagte any material discrepancies. AUDITING AROUND THE COMPUTER.

The audit is a fabric that is skillfully woven of these techniques. Test specific controls in computer programs such as on-line password and data access controls. The nature of computer-based accounting systems is such that auditors may use the audit client companys computer or their own as an audit tool to assist them in their audit procedures.

IT auditors sometimes do the same thing with lists of access logs or other reports relevant to IT audits. Auditors gather data continuously throughout the engagement so look for opportunities to brainstorm all the way through. Auditing Around the Computer 2.

So many times auditors of all types use a computer-generated report to perform some aspect of assurance. Auditors might use test data to. In this process auditors process the input transaction manually and compare their result with the clients computer processing and investigate any material discrepancies.

The extent to which an auditor may choose between using CAATs and manual techniques on a specific audit engagement depends on the following factors. These are staff positions reporting to top management andor the audit committee of. One moment you will be looking around the work area and the very next youll ask an employee a question.

Without knowing the computer technology programming and other techniques used in electronic data processing previously. Using this they can identify whether the system correctly processes it and detects any issues. Describe how an auditor might use through-the-computer techniques such as test data an integrated test facility parallel simulation or validation of computer programs to.

I Audit software Computer programs used by the auditor to interrogate a clients computer files. Then the auditor might ask for supporting evidence to corroborate managements response. AUDITING AROUND THE COMPUTER is one of the several methods that auditors can use to evaluate a clients computer controls.

Computer-assisted audit techniques CAATs are those featuring the application of auditing procedures using the computer as an audit tool Glossary of Terms. However that requires auditors to use the clients systems instead of their own. 23 Use of personal computer PC in auditing.

Describe how an auditor might use through the computer techniques such as test data an integrated test facility parallel simulation or validation of computer programs to accomplish audit objectives relative to accounts payable. A companys own accounting employees perform the audit. Visual observation examination of records and employee interviews.

An Audit is a systematic process of obtaining and evaluating evidence Financial Audit Operational Audit Fraud Audit. Auditing through the Computer. It involves picking source documents at random and verifying the.

Auditing Around the Computer. For example auditors can introduce test data in the clients financial systems. For example financial auditors may pull a computer-generated list of accounts receivable ie subsidiary listing and use it to confirm receivables.

The five techniques used in auditing through the computer include. A Prepare trial balance and lead schedule by extracting balances from the ledger accounts. Computer Auditing Approach 1.

Describe how an auditor might use through the-computer techniques such as test data an integrated test facility parallel simulation or validation of computer programs to accomplish audit objectives relative to Accounts Payable. Test transactions selected from previously processed transactions or created by the auditors to test specific processing characteristics of an entitys information systems. Audit around the computer approach is used in situations when auditor is of the opinion that computer system is reliable and often comparison of inputs ie.

When it is possible to relate on a one to one basis the original input to the final output or to put it another way where the audit trail is always preserved than the presence of the computer has minimal effect on the auditors work and in that case it is possible to ignore what goes on in the computer and. Use of test data integrated test facility and parallel simulation to test programs uses of audit techniques to validate computer programs use of logs to review systems software use of documentation and CAATs to validate user accounts and access privileges and use of embedded audit modules. CAATs are normally placed in three main categories.

B Perform analytical procedures by extracting balances of financial statements and then calculate financial ratios and compare with prior years balances. Computer assisted audit techniques can work in various ways. Auditing around the computer is an audit approach to test the reliability of the computer processing without actually using the computer.

This article throws light upon the top two Computer Auditing Approaches. Some auditors may choose to meet for discussions again near the conclusion of the audit to consider the findings and experiences of all team members and whether the teams assessment about and response to the risk of. Describe how an auditor might use through-the-computer techniques such as test data an integrated test facility parallel simulation or validation of computer programs to accomplish audit objectives related to accounting transactions.

Financial reports is done which in auditors judgement is enough. Source documents to outputs ie. In other auditor will not assess whether required controls are in place and if they are working operating effectively while inputs.

What Does It Mean To Audit Around The Computer Universal Cpa Review