Professional Documents
Culture Documents
16 Technology
Accounting Financial
Transactions
System Reports
Cash Bank
Compliance Testing Receivables Customers
Interim Audit (Confirm balances)
Substantive Testing
Financial Statement Audit
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 4
Auditing Around the Computer
Application
Internal
Systems
Controls
Development
Computer
General Service
Controls Center
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 6
Auditing with the Computer
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 8
Auditing with the Computer
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 9
Information Systems
Auditing Technology
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 10
Information Systems
Auditing Technology
Test Data
Hypothetical
Transactions
Computer Processing
Using Master Program
Compare Auditors
Error Listing Expected
Output
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 11
Information Systems
Auditing Technology
Technique: Integrated test facility (ITF)
Description: ITF involves both the use of test
data and the creation of fictitious
records (vendors, employees) on
the master files of a computer
system.
Example: Payroll transactions for fictitious
employees are processed
concurrently with valid payroll
transactions.
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 12
Information Systems
Auditing Technology
ITF
Transactions Transactions
Reports Reports
Without Containing
ITF Data ITF Information
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 13
Information Systems
Auditing Technology
Computer
Application Transactions
System
Parallel
Simulation
Program
Function to
Be Verified
Compare Simulation
Report
Report
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 15
Information Systems
Auditing Technology
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 16
Information Systems
Auditing Technology
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 17
Information Systems
Auditing Technology
Technique: PC software
Description: Software that allows the auditor to
use a PC to perform audit tasks.
Example: A PC spreadsheet package is used
to maintain audit working papers
and audit schedules.
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 18
Information Systems
Auditing Technology
Deloitte & Touche AuditSystem/2
Smart Audit
Work Support Access to
Papers Information
Document
Manager
Trial File
Balance Multilocation Interrogation
Support
MS MS MS Lotus Folio Other
Word Excel Access cc:mail ACL VIEWS Applications
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 19
Information Systems
Auditing Technology
Production
Computer
Application
System
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 22
Information Systems
Auditing Technology
Technique: Snapshot
Description: Modifications of programs to
output data of audit interest.
Example: A payroll program is modified to
output data pertaining to overtime
pay.
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 23
Information Systems
Auditing Technology
Technique: Tracing
Description: Tracing provides a detailed audit
trail of the instructions executed
during the programs operation.
Example: A payroll program is traced to
determine if certain edit tests are
performed in the correct order.
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 24
Information Systems
Auditing Technology
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 25
Information Systems
Auditing Technology
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 26
Information Systems
Auditing Technology
Technique: Mapping
Description: Special software is used to monitor
the execution of a program.
Example: The execution of a program with
test data as input is mapped to
indicate how extensively the input
tested compares with individual
program statements.
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 27
General Approach to an
Information Systems Audit
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 30
General Approach to an
Information Systems Audit
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 31
General Approach to an
Information Systems Audit
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 32
General Approach to an
Information Systems Audit
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 33
Information Systems Application
Audits
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 34
Application Systems
Development Audits
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 35
Application Systems
Development Audits
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 36
Application Systems
Development Audits
What is the objective of program change controls?
It is to prevent unauthorized and potentially
fraudulent changes from being introduced into
previously tested and accepted programs.
Normally, an audit of the computer service center
is undertaken before any application audits to
ensure the general integrity of the environment in
which the application will function.
2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 16 - 37