INFORMATION SYSTEM AUDITING CONCEPTS

1
INFORMATION SYSTEM AUDITING CONCEPTS The process
of reviewing and evaluating the internal controls
in an electronic data processing system is
called auditing through the computer In
contrast, the expression auditing with the
computer describes the utilization of the
computer by an auditor to perform some audit work
that otherwise would have to be done manually.
2
Structure of a Financial Statement Audit The
primary objective of an external auditor is to
attest to the fairness of a firms financial
reports. An audit is almost universally divided
into two basic components 1) The Interim Audit -
The objective of this part of the audit is to
establish the degree to which the internal
control system can be relied upon (Usually
subjected to compliance testing) 2) The
Financial Statement Audit - The objective of this
part of the audit is the direct verification of
financial statement figures. (Usually subjected
to substantive testing)
3
Auditing Around The Computer In the around the
computer approach, the processing portion is
ignored. Instead, source documents supplying the
input to the system are selected and summarised
manually so they can be compared to the
output. Auditing Through The Computer Auditing
Through The Computer may be defined as the
verification of controls in the IS Auditing With
The Computer Auditing With The Computer is the
process of using IT I in auditing.