Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 12, Problem 14RQ
To determine
Identify the meaning of auditing through the computer and describe the challenges and benefits associated with such mode of auditing when the client uses IT extensively to process accounting information.
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Students have asked these similar questions
Describe the differences between auditing around the computer and auditing through the computer? Which one is more effective in a computerized accounting information system? Why?
List the management reports and computer files that can be used for audit evidence. What information in them can be useful to auditors?
CPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data.
a. Describe the auditing approach referred to as “auditing around the computer."
Chapter 12 Solutions
Auditing And Assurance Services
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Describe how the nature of evidence used to...Ch. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16.1MCQCh. 12 - Prob. 16.2MCQCh. 12 - Prob. 16.3MCQCh. 12 - Prob. 17.1MCQCh. 12 - Prob. 17.2MCQCh. 12 - Prob. 17.3MCQCh. 12 - Prob. 18.1MCQCh. 12 - Prob. 18.2MCQCh. 12 - Prob. 18.3MCQCh. 12 - Prob. 19.1MCQCh. 12 - Prob. 19.2MCQCh. 12 - Prob. 19.3MCQCh. 12 - Prob. 20DQPCh. 12 - Prob. 21DQPCh. 12 - Prob. 22DQPCh. 12 - Prob. 23DQPCh. 12 - Prob. 24DQPCh. 12 - Prob. 25DQPCh. 12 - Prob. 26DQPCh. 12 - Prob. 27DQPCh. 12 - A CPAs client, Boos Baumkirchner, Inc., is a...Ch. 12 - Prob. 29DQPCh. 12 - Prob. 30DQPCh. 12 - Based on a cost-benefit analysis, management at...Ch. 12 - Prob. 32DQPCh. 12 - Prob. 33DQPCh. 12 - Prob. 34DQP
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Similar questions
- Explain all the five steps involved in the information system based audits in your own words. How would an auditor verify the source documents while auditing accounting information systems where business is conducted fully online?arrow_forwardCPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data. d. How can the CPAs be satisfied that the computer programs presented to them for testing are actually those used by the client for processing accounting data?arrow_forwardTo complete an audit of accounting information system effectively, auditor will need to have some knowledge of computers and their accounting applications, but not necessarily every auditor needs to be a computer expert. Explain to which extent auditors of accounting information systems should possess computer expertise to be effective auditors.arrow_forward
- CPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data. c. In auditing through the computer, CPAs may use test data. (1) What are test data? (2) Why do CPAs use test data?arrow_forwardCPAs may audit around or through computers in the examination of financial statements of clients who utilize computer to process accounting data. Required: Describe the auditing approach referred to as auditing around the computer.arrow_forwardExplain why the implementation of ERP in a company, especially SAP, can simplify the accounting audit process carried out by both internal and external auditors. Link your explanation with the principles of recording transaction documents in SAP.arrow_forward
- Identify two specific IT-related risks in computerized accounting information systems. Propose a strategy that might be implemented to mitigate or eliminate each selected risk. Be sure to effectively support your rationale.arrow_forward1. Explain how client internal controls can be improved through the proper installation of IT. 2. Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error. 3. Explain what is meant by auditing around the computer, and describe what must be present for this approach to be effective in the audit of a client that uses IT to process accounting information. 4. An audit client is in the process of creating an online Web-based sales ordering system for customers to purchase products using personal credit cards for payment. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk. 00000000000arrow_forwardWhat are some advantages of using IT and audit software when conducting an audit?arrow_forward
- Outline the advantages of utilizing audit software in an audit of Discuss the potential challenges that may arise during an audit and for each challenge, propose a solution to overcome it.arrow_forwardDefine what is meant by an audit trail and explain how it can beaffected by the client’s integration of IT.arrow_forwardHow might an auditor effectively use preliminary analytical procedures in the audit of various expense accounts, such as miscellaneous expenses? How might this enable the auditor to better understand the business and its environment? How do computer-assisted procedures impact this audit?arrow_forward
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