Title: Chapter%20Eight:%20Auditing%20Computerized%20Information%20Systems
1Chapter 8
Auditing Computerized Information Systems
2Computer Audit Tools to Test Computer Processing
- Elements of a systems audit approach.
- Only authorized computer applications are
developed. - Programs are thoroughly tested.
- Authorization needed for changes to programs.
- Access restricted.
- Controls over users and input.
- Monitoring controls in place.
3Computer Audit Tools to Test Computer Processing
(cont.)
- Data transmission controls in place.
- Data integrity is periodically tested.
- A comprehensive security and backup plan is in
place.
4Comprehensive Approach
- Auditors must always
- Independently test the correctness of processing
- Independently test the reliability of data
5Approaches to Address Correctness of Processing
Test data and integrated test facility
Concurrent processing
Embedded audit modules
6Test Data Auditing through the computer
- Test data approach
- Are control procedures functioning?
- Is the computer application processing
transactions correctly? - Are all transaction and master files fully and
correctly updated? - Limitations!
- Integrated test facility (ITF)
7Concurrent Processing Methodologies
- Tagging and tracing approach (a.k.a. snapshot
approach) - The systems control audit review file (SCARF)
approach - Embedded audit modules
- Advantages
8Using the Computer to Help Test Accounting Records
- Generalized Audit Software (GAS)
- Footing
- Selecting a sample
- Extracting, sorting, summarizing data
- Statistics
- Analytical review
- Screening
- Checking
- Calculations
- Reports
9Using the Computer to Help Test Accounting Records
- Custom Designed Audit Software
- Alternative to GAS
- Custom designed for specific client and specific
application
10Unique Audit Approaches for Electronic Commerce
- Risk Analysis
- The Process and Control Audit
- Detailed testing of account balances
- Tagging and Tracing
- Embedded Audit Module
- Audit Software
11Use of Personal Computing in Conducting an Audit
- Traditional Uses
- Word Processing
- Spreadsheets
- Expanded uses
- Electronic working papers
- Groupware
- Intelligent agents
- Expert systems
12Unique Problems Auditing a Clients Spreadsheet
- Parallel simulation
- Test data
- Manual audit