REVIEW CHAPTER 4: AUDITING IN COMPUTERISED INFORMATION SYSTEM ENVIRONMENT(PSP_DAT5CJune2020)
Group members:KAVIN NAIDO A/L SANDRAN(10DAT18F1115)
NURUL NATASYA IMAN BINTI ISMAIL(10DAT18F1079)
SITI AISHAH BIINT MASRONI(10DAT18F1103)
NUR HAZWANI BINTI JAAPAR(10DAT18F1089)
NABILAH BINTI MUSA(10DAT18F1105)
Introduction
Information Technology throughout the world has revolutionized and
dramatically changed
the manner in which the business is
conducted today. Computerization has a significant effect organization control, flow of document
information processing and so on.
Auditing in a CIS environment even though has not changed the fundamental nature of auditing, it has definitely caused substantial changes in the method of evidence collection and evaluation. This also requires auditors to become knowledge about computer environment (Hardware, software etc.) and keep pace with rapidly changing technology, even to the extent of using sophisticated Audit software.
Students are advised to study the technical issue relating to Information Technology from the study material of paper 6.
Group 1: What is the purpose of auditing in
computerized system environment
Group 2: List the electronic data processing (EDP)
Group 3: List 3 advantages and disadvantages of using
IT system
Group 5: Describe the technical complexity and the
extent to which they are used in organization
Group 6: What is the plan an audit strategic?
Group 7: What is the application need to be considered?
Group 8: List 4 categories of CIS General Control.
Comments
1. Organizational & Menagement control
2. Applications systems development & maintenance controls
3. Hardware & systems software control
4.Data entry & Programe control
Technical complexity:
1. Online-Line Processing
An online system allows direct access into the computer. Transactions can be put directly into the system so that master files are updated at time the entry is made.
2. Communication System
Communication channels can connect the computer directly to users anywhere in the world.
3. Distributed Processing
When the computing function is apportioned among CPUs spread geographically and connected by a communication system.
4. Data Based Management
-As the volume and uses of computer- processed data expand, data on different files are often redundant.
-The effect is inefficient use of file space and the need to update files continually.
The purpose of this article is to provide guidance on following aspects of auditing in a computer-based accounting environment:
Application controls, comprising input, processing, output and master file controls established by an audit client, over its computer-based accounting system and
Computer-assisted audit techniques (CAATs) that may be employed by auditors to test and conclude on the integrity of a client’s computer-based accounting system.
-Time-sharing.
-Real-time processing.
-Online processing.
-Multiprocessing.
-Multitasking.
-Interactive processing.
-Batch processing.
-Distributed processing.
Advantage
Creation of new types of jobs – one of the best advantages of information systems is the creation of new and interesting jobs. Computer programmers, Systems analyzers, Hardware and Software developers and Web designers are just some of the many new employment opportunities created with the help of IT.
Communication – with help of information technologies the instant messaging, emails, voice and video calls becomes quicker, cheaper and much efficient.
Disadvantage
Security issues – thieves and hackers get access to identities and corporate saboteurs target sensitive company data. Such data can include vendor information, bank records, intellectual property and personal data on company management.
Unemployment and lack of job security – implementing the information systems can save a great deal of time during the completion of tasks and some labor mechanic works. Most paperwork’s can be processed immediately, financial transactions are automatically calculated, etc. As technology improves, tasks that were formerly performed by human employees are now carried out by computer systems.
Develop mission and set vision
Understand organizational plans and assess needs
Perform a SWOT analysis to identify gaps
Define initiatives to fill gaps and develop a roadmap
Ensure stakeholder alignment and develop communication plan
Identify key performance indicators (KPIs) to measure success
What is the application need to be considered?
i. Input Controls
ii. Processing Controls
iii. Output Controls
iv. Master File Controls