Video Review Assignment | Auditing in a Computerized Accounting (PSP_DAT5B_Group5)

 Nur Illyia Binti Kamal (10DAT18F1108)

Nur Ashiqin Aqillah Binti Dermawi

(10DAT18FF1020)

Nor Faizah Binti Abdul Rahman

(10DAT18F1100)

Santhiya Sagaran

(10DAT18F1078)

Kenneth Bernard

(10DAT18F1122)

This video was explained about auditing in a Computerized Environment. No matter whether it's a small or big entity , every entities are using computer in their accounting system. This produces new opportunities for professional accountants  hence , creates some challenging problems to auditors. Regardless of the extent of Computerization are the methods of data processing being used the responsibility for the establishment and implementation of appropriate internal control systems rests with the management and those charged with governance. The others responsibility is to obtain an understanding of the entity's internal control system to be able to assess the control risk and determine the nature timing and extended the tests to be performed

In this video, we have know about the characteristic of CIS which is consistency of performance, ease of access the data and computer program, concentration of duties, system generated transaction, and vulnerability of data and program storage media .

Type of CAAT

1.GENERALISED AUDIT SOFTWARE (GAS):test on data files

2.custom audit software :specific task

3.test data:creates a simulation transaction

4.intergrated test facility:”Dummy” record is created

5.Parallel simulation : mimics the entities application programme

Consideration in the use of CAAT 

1. It knowledge ,expertise & experince of the audit team

2.the availability of CAAT & suitable computer facilities &data 

3. The impracticability of manual test 

4. Effectiveness & efficiency

5.timing

Internal Controls

1. Two types of controls which is general controls and application controls

2.organzational controls function within the CIS deartment

3.system development and documentation controls

4.access controls which every computer should have controls to protect equipment, files and program.

5.monitoring controls ensure that CIS control are working effectively as planned.

6.controls over output are designed to provide reasonable assurance that the results of processing are complete.