chapter 24

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Created by
Linelyn Dolar

Cards (10)

  •  auditor focuses upon all IT functions, particularly the controls over input, processing and output.
    Auditing through
  • Major types of computer fraud
    1. Salami technique
    2. Trojan horse
    3. Virus programs
    4. Trapdoors
  • both a pervasive effect and an account-specific effect on the likelihood of material misstatements
    Inherent and Control risk
  • Audit procedure applicable to evaluating the internal controls in IT systems:
    1. Review of the system 
    2. Tests of compliance 
    3. Evaluation to determine the extent Of the substantive tests 
  • Sources of programs are:
    1. auditor written programs
    2. auditee programs
    3. utility programs
    4. generalized computer audit programs
  • Audit procedures performed by generalized audit software
    • Testing client calculations
    • Making additional calculations
    • Extracting data from the client files
    • Examining records which meet criteria specified by the auditor
    • Selecting audit samples
    • Comparing data that exist on separate files
    • Summarizing data
    • Comparing data obtained through other audit procedures with client records
    • Identify weaknesses in internal control
    • Prepare flowcharts of client transaction cycles and of client programs
    • Prepare graphic displays of data for easier analysis
    • Correspondence (engagement letters, representation letters, attorney's letters)
  • Three concurrent techniques
    1. Integrated test facilities
    2. Snapshots
    3. System control audit review files (SCARF)
  • This uses audit software embedded in the client's system, called an embedded audit module, to gather information at predetermined points in a system
    System control audit review file
  • Seven steps in the use of audit workstation
    1. determine data needed
    2. write extract routine
    3. run extract programs
    4. download extracted file
    5. perform analysis
    6. prepare report
    7. workpapers
  • involves lagging or specifically marking or highlighting certain transactions by the auditor at the time of their input
    Tagging and tracing transactions