How to organize your electronic files for your first audit. Source documents providing input to the computer were selected. Portable microcomputers that are lightweight, easy to set. Auditing and integrated approach emphasizes the auditors decision making process to give you the headstart you will need in your careers. Audit sampling for tests of controls and substantive tests of transactions. Approaches to computer auditing by akamobi, ndidika l. Edp auditing working papers are often dispersed throughout the investigation site, and files, people, and equipment must be sought out. System threat and risk analysis limited access to electronic record systems access authorization or security codes unalterable datestamping of transactions and transaction files system access and data access logs auditing electronic data. Information technology controls scope this chapter addresses requirements common to all financial accounting systems and is not limited to the statewide peoplesoft financial accounting system, but also applies to subsystems used by the various agencies of the state of indiana to process accounting information. Ch 03 solution manual information technology auditing 2nd ed james hall edp auditing class jakarta state university chairul anwar. Electronic data processing edp can refer to the use of automated methods to process commercial data. An electronic data processing audit is an evaluation of the accuracy and. There are some key problems in auditing large database systems that traditional auditing as well as the traditional edp process cannot fully solve. Therefore there is a great need for a strategic approach when auditing clients edp systems.
Unit v recent trends in auditing, basic consideration of audit in edp environment. Auditing in a computerbased environment 2 p7 advanced. Initially, reliance was put on outside consultants having information technology expertise to gain understanding of the governments information technology. Information technology auditing and assurance james hall pdf information technology auditing and assurance james hall pdf. Explain the audit procedures in an electronic data processing audit.
Auditing information systems second edition jack j. The damned engineers, janice holt giles, 1985, world war, 19391945, 409 pagesjournal of object oriented programming, volume 4, issues , 1991, objectoriented programming. A questionnaire impact of edp on school auditing i edpsa was used to collect data from 83 school auditors and 47 school administrators who were randomly selected from 5. Audit in accordance with international standards on auditing isa 200 72 introduction scope of this isa 1.
Auditing international standard on auditing 200 overall objectives of the independent auditor and the conduct of an au dit in accordance with international standards on auditing effective for audits of financial statements for periods beginning on or after december 15, 2009 contents paragraph introduction. For example, given that traditional audits are performed only once a year, audit data may be gathered long after economic events are recorded. James a hall information technology auditing and assurance. The management control system is therefore separate from the internal auditing set up and even if there is no lack of points of contact between the two systems and. Because technology had changed from batch mainframe systems to online transaction processing with those ubiquitous greenscreen terminals, new control techniques were needed to address those nine loss. M a information technology best practices janice m. Edp auditing expert systems developed for edp auditing take two primary formats. Computer applications reports and downloading files, etc. Covers the control risk assessment procedures that the auditor performs on computerized systems in meeting objective relating to the audit. Three research questions were raised to guide the study. Edp audit division audit report on user access controls at the department of finance 7a033 audit report in brief we performed an audit of the user access controls at the department of finance department. As a reflection of this evolution, the term edp audit has largely been replaced by such terms as information technology audit and information systems audit. Information technology auditing it auditing began as electronic data process edp auditing and developed largely as a result of the rise in technology in accounting systems, the need for it control, and the impact of computer, and on the ability to perform attestation services.
Html at items below if any are from related and broader terms. One approach is that to develop an expert system to assist the auditor in auditing the system. You also learn about the approaches to auditing computerized systems and the ways to use computers for an audit. Edp auditor a person who performs an edp audit within an organisation.
Alteration of data or files permanent data such as a workers hourly rate stored in master file. How to organize your electronic files for your first audit or a refresher for that upcoming audit every experienced auditor has come across a messy file. Computer auditing control matters the introduction of a computerized or electronic data processing edp. Edp audit or audit under computerised information system environment means an examination. The study is concerned with the impact of electronic data processing on auditing in school management. The aim is to affect the whole public sector and not only the authorities that were audited.
Work priority scheme for edp audit and computer security. All documents included in this bibliography are available in the. Audit sampling for tests of details of balances 15. International standard on auditing isa 401, auditing in a computer information systems environment should be read in the context of the preface to the international standards on quality control, auditing, assurance and related services, which sets out the application and authority of isas. Paradigm shift in information systems auditing article pdf available in managerial auditing journal 24may.
Eaudit is used as a generic term to cover a threepillar structure consisting of. While there is no single universal definition of is audit, ron weber has defined it edp auditingas it was previously called as the process of collecting and evaluating evidence to. These systems eliminate paperbased transaction records, including traditional audit trails. Shifting from paper documents to electronic data processing edp and online.
The department of information technology and telecommunications doitt manages the departments system software and hardware and. Covers the control risk assessment procedures that the auditor performs on computerized systems in meeting objective relating to the audit financial statements. Audit report on user access controls at the department of. Computer auditing overview in this module, you learn about the effects that computer processing has on both the control environment and the audit of financial systems. Computer auditing in the oag began with a major study of the computer systems of the federal governments in 1976 and 1977. Evaluating accounting system, internal control and audit risk. When this happens, auditors must develop new audit techniques. A guide to understanding audit in trusted systems version 2, 1988, by national computer security center u. The is audit process information systems audit is a part of the overall audit process, which is one of the facilitators for good corporate governance.
Edp electronic data processing, an infrequently used term for what is today usually called is information services or systems or mis management information services or systems, is the processing of data by a computer and its programs in an environment involving electronic communication. When the auditor uses only the non edp seg ment of the internal control structures to. Hello and welcome to the first domain of the certified information systems auditor cisa course offered by simplilearn. Auditing is also described as a continuous search for compliance. Audit report on user access controls at the department of finance.
The accounting systems of many companies, large and small, are computerbased. This book discusses controls in edp systems, case studies, problems. Auditing standards and applicable statutes require us to consider the effects of edp on our. Sep 28, 2014 chapter 6 auditing in computerised information system environment nor amalia binti ahad 10dat11f2027 normastura binti ahmad 10dat11f2039 siti nabilah bi slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Effortlessness of comprehension as a tracing of documents. Shows the audit of computerized accounting systems as part of the audit of the financial statements. Pdf opening, historical approach to auditing financial statements with the emergence of edp systems in the 1980s.
Chapter 4 audit techniques for electronic records and data. The auditor has the following two methods at his disposal namely, auditing around the computer and auditing through the computer. Edp auditing system and auditing standards relating to such system in details would. Consideration in the selection of the computer systems. This domain will cover the information systems auditing process. Review the procedures for limiting access to data files. Solution manual for information technology auditing 4th view solution manual for information technology auditing 4th edition by james a. Intrusion detection systems an important aspect of auditing edp systems is ensuring their integrity. The cas should understand the taxpayers computer system and accounting system to determine what files to access and how.
Expert systems have been designed to provide continuing, online intru siondetection protection of edp systems. This international standard on auditing isa deals with the independent auditors overall responsibilities when conducting an audit of financial statements in accordance with isas. Students need to ensure they have a complete understanding of the controls in a computerbased environment, how these impact on the auditors assessment of risk, and the subsequent audit procedures. An overview of auditing the environment of auditing the auditors decision process understanding the client and its business the study and evaluation of internal control nature of audit tests working papers audit of the sales and collection cycle determining sample size, using attributes sampling, and selecting the items. Edp controls the control environment in complex edp systems is even more critical than that in more simple systems because there. Portable microcomputers that are lightweight, easy to set up, and durable represent an inexpensive way to. In an edp environment, processing errors are mainly caused by programming errors or systematic errors in the hardware or software. Completing the tests in the sales and collection cycle. Another approach is to develop systems that audit use of the system, in order to determine if there has been intrusion into the system. Completing the tests in the sales and collection cycle the use of variables sampling in auditing the impact of edp systems on auditing audit of the payroll and personnel cycle audit of the. Information systems control and audit, 1999, 1027 pages, ron. Documents such as sales receipts and supplies invoices are used to verify the data. Information technology auditing 4th edition information.
Such systems stay resident in the computer system, monitoring the behavior of system users. They depict the interrelationships of sets of data records and can help the auditor locate the same information in different records or files or crosschecking. Edp evolved from dp data processing, a term that was created when most. Let us look at the objectives of this domain in the next screen. Audit procedures intraeuropean organisation of tax. One that comes to mind that i managed involved hundreds of documents coming in from around the globe, all in different languages, currencies, and in an unsearchable jpeg format. Typically, this uses relatively simple, repetitive activities to process large volumes of similar information. Determine if programs not in the production library are adequately restricted from processing against data files and if controls are adequate to restrict access to data files to only authorized persons. Information systems control and audit, 1999, 1027 pages. Commercial systems, governmental auditing and internal auditing. In effect the requirement of an audit trail,l2 as is present in manual systems, was main tained.
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