Assignment

Abstract

This assignment is based on the three problem s from the book 'Information Technology Auditing' by James Hall, ISBN 9781439079119. The assignment discusses that computer technology in the hands of the modern auditor can serve as an automation tool. By performing substantive audit procedures and analytical procedures, we can select and analyze samples of a large volume of transactions. Currently, batch jobs are widely used in supercomputers.

Assignment

Introduction

This assignment is based on the three problem s from the book 'Information Technology Auditing' by James Hall, ISBN 9781439079119. Problem 1 is based on Processing Controls. Problem 2 is based on Generalized Audit Software and Problem 3 is based on System Configuration. The appropriate designed system can stop modification and devastation of data. These data controls can be classified as (1) input controls, (2) processing controls, and (3) output controls.

PROBLEM 1: Processing Controls

Control Category

Specific Controls

Contribution To Data Reliability

Input Control

Check digits

This will enhance the accuracy and reliability of data. This will further minimize the risks of getting manipulated results.

Input Control

Hash totals

This will help us to sum up data of several fields in a file. This can be used at various stages of data processing.

Processing Control

Sequence Checks

This will enhance the probability that all steps are in sequence and will lead to complete accuracy.

Processing Control

Transaction logs

This helps in tracking the sequence of transactions at all levels as it is crucial step in maintaining the reliability of data.

Output Control

Waste

Waste in output control can

Output Control

Report Distribution

Report Distribution will help people to understand the all steps carried out I overall process. This will also curtail the chances of fraud.

PROBLEM 2: Generalized Audit Software

Question 1:

New computer information processing technology in the audit process will also improve the intellectualization of the audit and scientific rationale for its conclusions. Intensive development of computer technology has created all necessary conditions for the improvement of auditing and monitoring the effectiveness of the enterprise. Using equipment and advanced technology has made a significant impact on the audit process and improve its methods. That is significant progress in the audit work can be achieved through the use of computer technology. And the further development of this area is quite topical and today (Lahey, 2009).

Computer auditing tools can help save audit time, streamline the audit process and is uninterrupted operations of the industry. Since little paperwork is involved, have less time for review and retrieval. Computers allow easily use the audit results to identify and correct problem areas. Therefore, through the use of computers in the audit, you reduce significantly the time spent on the audit process.

The computer audit will allow internal auditor to better manage and audit procedures will help him obtaining and evaluating the audit evidence. The tools of computer-assisted audit give company control over large customers and help you test a large number of transactions efficiently and effectively. By performing substantive audit procedures and analytical procedures, you can select and analyze samples of a large volume of transactions.

Conducting the audit in a computer environment evaluate ...