Page 9 - Audit Day 3 - Class Slides
P. 9
IT
• When the auditor obtains an understanding of the entity’s control
activities, ISA 315, par 21, stipulates that the auditor must ALSO
obtain an understanding of how the entity responds to risks
arising from information technology (IT), as the use of IT affects
the way in which control activities are implemented.
• From an audit perspective, controls over IT systems are effective
when they maintain the integrity of information and the security
of the data and include effective general and application
controls.
• These controls (general and application) may be manual and/or
automated controls. For both manual and automated controls,
you have to be comfortable with the theory on business cycles as
discussed in chapters 10 to 14 of Auditing Notes.
• It is important for you to familiarise yourself with ISA 315, par A60
to A66. These paragraphs deal with the characteristics of manual
and automated elements of internal control.
