Page 138 - DCOM204_AUDITING_THEORY

Auditing Theory Manpreet Kaur, Lovely Professional University

Notes Unit 8: Auditing in an EDP Environment

CONTENTS
Objectives
Introduction
8.1 Scope of Audit in CIS Environment/Impact of CIS on Auditing
8.2 Prerequisites while Auditing in CIS Environment
8.3 Audit Process in an EDP Environment

8.4 Auditing and EDP Environment—Meaning of Electronic Data Processing (EDP)
8.4.1 Basic Features of EDP Environment
8.4.2 Advantages of EDP Systems in Auditing
8.4.3 Audit Procedures in EDP/CIS Environment
8.4.4 How Auditors should Approach Auditing in EDP Environment?
8.4.5 Audit Techniques
8.4.6 Audit Planning

8.5 Auditor’s Challenges and Modern Ways for Auditing Electronic Data Processing
(EDP) Accounts or Financial Statements
8.5.1 Advantages
8.5.2 Disadvantages

8.6 Problems Encountered in an Electronic Data Processing Environment
8.7 Internal Controls in an EDP Environment
8.8 Planning an Internal Audit in an Electronic Data Processing Environment
8.8.1 Internal Audit Practices in Relation to Computerized System
8.8.2 Requirements for a Computer Audit Program System
8.9 Computer assisted Audit Techniques (CAATs)

8.9.1 Audit Software
8.9.2 Steps involved in Application of CAAT
8.9.3 Techniques
8.9.4 Uses of CAAT
8.9.5 Considerations in Use of CAAT
8.9.6 Testing CAAT
8.9.7 Measures to Exercise Control over CAAT Applications

8.10 Summary
8.11 Keywords
8.12 Review Questions
8.13 Further Readings

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