CPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data. b. Under what conditions do CPAs decide to audit through the computer instead of around the computer?
CPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data. b. Under what conditions do CPAs decide to audit through the computer instead of around the computer?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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CPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data.
b. Under what conditions do CPAs decide to audit through the computer instead of around the computer?
Expert Solution
Step 1
Auditing Around the Computer:
It is an auditing approach that is used to test or check the consistency of computer processing by not even using computers. In this method, the auditor will input data manually and will compare the results with that of the computer processing and look for any discrepancies.
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