Auditing of CBIS

1
Auditing of CBIS

• Chapter Ten

2
IIA Vs. AICPA

• IIA Audit Scope
• Reliability and integrity
• Complies with operating parameters
• Review IC to safeguard assets
• Review uses of firms resources
• Review overall compliance with company objectives

3
Internal Audits

• Financial
• reliability and integrity of accounting records
• IS
• general and applications controls of IS
• Operational
• economic and efficient use of resources

4
Audit Risk

• Inherent Risk
• material misstatements without controls
• perhaps specific technology or industry risk
• Control Risk
• material misstatements given the existing control
  structure
• Detection Risk
• probability that auditors will not detect errors

5
Materiality

• Define?
• Reasonable assurance

6
IS Audits

• Security
• Program development and acquisition
• Program modification
• Computer processing
• the test data phase
• Source data integrity
• Safeguarding of data files

7
Concurrent Audit Techniques

• Integrated Test Facility (ITF)
• can the system recognize fictitious records
• Snapshot Technique
• MF - TF - MF and auditor reviews
• System Control Audit Review File (SCARF)
• Continuous and Intermittent Simulation (CIS)
• set audit parameters and collect data in a file
• Audit Hooks
• real-time notification of specific events

8
Key to Audit Software

• Integrate audit software and processes during
  design and implementation

9
Become WealthyDonate Audit Software to ISU

• Self-designed - comparison of reported and
  expected results e.g., bonuses, commissions,
  wages, interest
• GAS, ITF, SCARF
• Automated flowcharting
• Automated decision tables
• Scanning routines (SSN example)