B Perform analytical procedures by extracting balances of financial statements and then calculate financial ratios and compare with prior years balances. If auditor does not know to use computer he cannot work efficiently.
Ppt Differentiation Between Auditing Through Computer And Around Computer Nur Ikram Academia Edu
Describe how an auditor might use through the computer techniques such as test data an integrated.
. Financial reports is done which in auditors judgement is enough. 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. Visual observation examination of records and employee interviews.
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. Source documents to outputs ie. An auditor may also just scheme through the paperwork and based on his auditing experience determine if some given figures provided make sense and are reasonable.
A Prepare trial balance and lead schedule by extracting balances from the ledger accounts. AUDITING AROUND THE COMPUTER. Today the business organizations are using computers.
The auditor must be able to operate the computer. Auditing around the computer is an audit approach to test the reliability of the computer processing without actually using the computer. The audit is a fabric that is skillfully woven of these techniques.
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. In some cases the auditor will conduct more in-depth testing than in previous years when analytical procedures reveal a major discrepancy. Computer-assisted audit techniques CAATs are those featuring the application of auditing procedures using the computer as an audit tool Glossary of Terms.
Answer of Describe how an auditor might use through-the-computer techniques such as test data an integrated test facility parallel simulation or. In this case the reliance upon the information is critical to the conclusions about the assertion of the account balance class of transactions or disclosure being tested. For professional auditors it is necessary that he should be a charted accountant according to the companies.
Differentiation between auditing through computer and around computer Auditing through the computer Scope Auditing around the computer Process of evaluating or auditing Definition Process of evaluating a clients clients software and hardware computer controls to determine the to determine the reliability of existence of the information system operations process. 23 Use of personal computer PC in auditing. CAATs is the practice of using computers to automate the IT audit processes.
The extent to which an auditor may choose between using CAATs and manual techniques on a specific audit engagement depends on the following factors. First the auditor will ask management to explain the discrepancy. 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.
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. Inquiry is a fairly straightforward testing method wherein the auditors ask questions of the organizations managers accountants and any other key staff to help determine some relevant information. 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.
Gathering audit evidence as part of an audit involves a mix of techniques that are used interchangeably. CAATs are normally placed in three main categories. In this process the audiots input the transactions manually and compare their results with the clients computer processing and investiagte any material discrepancies.
3- Tests of Detailed Balances This type of audits tests aims at ending the general ledger balances for the statements of financial position of the Business and the Trading profit and. 3 use of logs and specialized control software to review systems software. 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.
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. Computer-assisted audit tool or computer-assisted audit tools and techniques is a growing field within the IT audit profession. Used mainly for substantive testing.
Computer Assisted Audit Technique CAAT 1. 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. The five techniques used in auditing through the computer include.
CAATs normally include using basic office productivity software such as spreadsheets word processors and text editing programs and more advanced software. One moment you will be looking around the work area and the very next youll ask an employee a question. 1 use of test Data integrated test facility and parallel simulation to test programs.
Then the auditor might ask for supporting evidence to corroborate managements response. 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. 2 use of audit techniques to validate computer programs.
In other auditor will not assess whether required controls are in place and if they are working operating effectively while inputs. Five techniques that auditors use to audit a computerized AIS are. In this process auditors process the input transaction manually and compare their result with the clients computer processing and investigate any material discrepancies.
Anticipate audit inquiries and requests. I Audit software Computer programs used by the auditor to interrogate a clients computer files. 4 use of documentation and CAATs to validate user accounts and access privileges.
The financial auditor might use a key report from the information system ie computer as the key information or an important audit procedure.
Auditing In A Computer Based Environment
What Is Audit Around The Computer Pakaccountants Com
2
0 Comments