Page 126 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 10

Audit of computer systems

10.1 Problems of auditing computer systems

 Concentration of controls in the IT department.

 Lack of primary records.

 Encoded data.

 Loss of audit trail.

 Overwriting of data.

 Program controls.

10.2 Audit approaches

 Through the computer.

 Round the computer.

10.3 Computer-assisted audit techniques (CAATs)

Audit software

 Extract a sample according to specified criteria.

 Calculate ratios and select those outside the criteria.

 Check calculations (for example additions).

 Prepare reports (budget vs actual).

 Produce letters to send out to customers suppliers.

 Follow items through a computerised system.

 Search for underlying relationships and check for fraud.

Test data

 Live data = processed during a normal production run.

 Dead data = processed outside the normal cycle.

116