Infotech 3 - Module 6 & 7 PDF

Module 6 Computer Assisted Audit Techniques (CAAT) An Overview Proud to be RTUian Computer Assisted Audit Techniques - using standard financial accounting software, modified as necessary for a particular system. - generally, much of the same information is requested and an...

Module 6 Computer Assisted Audit Techniques (CAAT) An Overview Proud to be RTUian Computer Assisted Audit Techniques - using standard financial accounting software, modified as necessary for a particular system. - generally, much of the same information is requested and analyzed as in a traditional audit. Proud to be RTUian Computer Assisted Audit Techniques - once verified using computer techniques, data is retained so it can be used in other areas of the audit including error identification and segregation of transactions within accounts. - customized reports are generated by computer and a standard audit trail is maintained. Proud to be RTUian Advantages of Using CAATs - saves time with no loss of quality or accuracy. - data analysis is focused and allows for any future adjustment to be made with minimal effort. Proud to be RTUian  Advantages of Using CAATs - preliminary data can be analyzed early in the audit process and a more efficient audit plan can be devised earlier. Proud to be RTUian Specific Areas in which CAAT Is Useful Computer Assisted Sampling -permits the use of random statistical sampling, which tends to be more accurate and saves time in those instances in which it is appropriate. Proud to be RTUian Specific Areas in which CAAT Is Useful File Management - files are combined, compared, managed, segregated and ordered automatically using generally accepted computerized file management. Proud to be RTUian Specific Areas in which CAAT Is Useful Report Generation - once data integrity is verified, the auditor can produce various reliable reports from the overall data population. Proud to be RTUian Commonly Used Compliance Testing Techniques - test data - integrated test facilities (ITF) - parallel simulation - program code comparison - program code review Proud to be RTUian Test Data used to verify: - input validation routines; - error detection capabilities; - processing logic and calculations; - the accuracy of reports; Proud to be RTUian Integrated Test Facilities (ITF) - provides an in-built testing facility through the creation of a dummy department or company within the normal accounting system. Proud to be RTUian Parallel Simulation - an independent program is generated to simulate part of an application. Proud to be RTUian Program Code Comparison - Utility programs are used to compare two versions of a program, and report difference between the two. - to ensure that only authorized changes have been made. Proud to be RTUian Program Code Review - involves a detailed examination of program coding. - it generally involves a fair degree of programming skill, and a thorough knowledge of program specification. Proud to be RTUian Commonly Used Substantive Testing Techniques - data file interrogation - embedded audit modules Proud to be RTUian Data File Interrogation Using audit software to review information held in computer files, by performing the following: 1. selecting records that conform to particular criteria; 2. printing selected records for detailed examination; Proud to be RTUian Data File Interrogation Using audit software to review information held in computer files, by performing the following: 3. printing totals and subtotals from an accounting file; 4. reporting on file contents by value bands; 5. searching for duplicate transactions; Proud to be RTUian Data File Interrogation Using audit software to review information held in computer files, by performing the following: 6. searching for gaps in sequences; 7. comparing the contents of two or more files, and printing either record matches or exceptions; 8. sorting and merging files. Proud to be RTUian Embedded Audit Modules - An audit application that is permanently resident within the main processing system. - It examines each transaction as it enters the system based on selection criteria before further processing. Proud to be RTUian  Module 7 Characteristics of Specific CIS Proud to be RTUian Types of CIS 1. Stand Alone 2. On-Line 3. Database system Proud to be RTUian Stand Alone CIS - One that is not connected to or does not communicate with another computer system. - Computing is done by an individual at a time. - All input data and its processing takes place on the machine. Proud to be RTUian Stand Alone CIS - A desktop or laptop computer that is used on its own without requiring a connection to a local area network (LAN) or wide area network (WAN). - Although it may be connected to a network, it is still a stand-alone PC as long as the network connection is not mandatory for its general use. Proud to be RTUian On-Line CIS - computers or devices are connected to a network for purposes of real-time processing of transactions and immediately update the corresponding files. - enable users to access data and programs directly through terminal devices. Proud to be RTUian  On-Line CIS: Classes of terminals - general purpose terminals such as basic keyboard/screen, intelligent terminals that can perform a certain amount of data validation, and microcomputers. - special purpose terminals such as POS devices, automated teller machines, and voice response systems such as those used in telebanking. Proud to be RTUian Types of Online Systems - real-time or on-line data entry and processing - online data entry / batch processing Proud to be RTUian Database System - access to data is usually provided by a "database management system" (DBMS) consisting of an integrated set of computer software that: - allows users to interact with one or more databases and, - provides access to all of the data contained in the database Database Management System - a "software system that enables users to define, create, maintain and control access to the database". Database System Database Management System Functions - Data storage, retrieval and update - User accessible catalog or data dictionary describing the metadata - Support for transactions and concurrency - Facilities for recovering the database should it become damaged Database Management System Functions - Support for authorization of access and update of data - Access support from remote locations - Enforcing constraints to ensure data in the database abides by certain rules Good Luck Proud to be RTUian