Page 150 - DCOM509_ADVANCED_AUDITING

Unit 8: Auditing in Computerized Environment

8.8 Keywords Notes

Benchmark: A standard or point of reference against which things may be compared or assessed.
Database Management: A collection of programs that enables you to store, modify, and extract
information from a database.
Electronic Data Processing (EDP): Automatic data processing by electronic means without the
use of tabulating cards or punched tapes.

Embedded training: Embedded training is defined as training provided by capabilities built into
or added onto operational systems, subsystems, or equipment, to enhance and maintain the
skill proficiency of personnel.
External auditor: An external auditor is an audit professional who performs an audit in accordance
with specific laws or rules on the financial statements of a company, government entity, other
legal entity or organization, and who is independent of the entity being audited.
Framework: A basic structure underlying a system, concept, or text.

General Audit Software (GAS): Generalized audit software is software designed to read, process
and write data with the help of functions performing specific audit routines and with self-made
macros.

Information Retrieval: The tracing and recovery of specific information from stored data.
Plastic Cards: The generic name for the range of payment-related cards.
Simulation: Imitation or representation, as of a potential situation or in experimental testing.

8.9 Review Questions

1. What is the Impact of Technology Revolution on Auditing?
2. What are the Specific Aspects of Auditing in a Computer-Based Environment and how one
can control risks in computer systems?

3. What do you understand by Controls in Computer Systems? Explain the two principles on
which controls are established.
4. Explain General Auditing Software (GAS) and discuss its advantages.

5. Explain how information is retrieved and analysed through Computer Assisted Audit
Techniques & Tools (CAATTs)?
6. What are the trends in information retrieval and analysis?

7. Explain the retrieval and analysis software.
8. What do you mean by computer based training?
9. Discuss how to improve the effectiveness of audit?
10. Describe concurrent auditing techniques.

Answers: Self Assessment

1. True 2. False

3. True 4. False

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