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Unit 14: Professional Ethics and Current Issues

3. Application Software Review: The business application could be payroll, invoicing, a Notes
web-based customer order processing system or an enterprise resource planning system
that actually runs the business. Review of such application software includes access control
and authorisations, validations, error and exception handling, business process flows
within the application software and complementary manual controls and procedures.
Additionally, a review of the system development lifecycle should be completed.
4. Network Security Review: Review of internal and external connections to the system,
perimeter security, firewall review, router access control lists, port scanning and intrusion
detection are some typical areas of coverage.

5. Business Continuity Review: This includes existence and maintenance of fault tolerant
and redundant hardware, backup procedures and storage, and documented and tested
disaster recovery/business continuity plan.
6. Data Integrity Review: The purpose of this is scrutiny of live data to verify adequacy of
controls and impact of weaknesses, as noticed from any of the above reviews. Such
substantive testing can be done using generalised audit software (e.g., computer assisted
audit techniques).

Self Assessment

Fill in the blanks:

9. ..................................... enacted by parliament is likely to have profound influence on auditing
e.g. Public Procurement Act 2004, Money Laundering Act.
10. The ..................................... determination has been made that auditing is central to public
confidence in our capital markets.
11. In E-commerce, documents such as invoices are exchanged using a standard method known
as .....................................
12. ..................................... means “suitable for use in a court of law”, and it is to that standard
and potential outcome that forensic accountants generally have to work.
13. ..................................... can be defined as accounting/auditing skills to situations that have
legal consequences.

14. The purpose of ..................................... audit is to review and provide feedback, assurances
and suggestions.
15. Assurances about an ..................................... can be obtained only if all the components are
evaluated and secured.



Case Study South Africa - Fostering Environmental Regulations

he most important industries with regard to their contribution to the GDP, but also
in terms of their political weight constitute a strong regulatory environment. South
TAfrica has been built on its mineral wealth. The country owns some of the world’s
richest reserves of diamonds, gold, coal, iron ore, platinum, chrome, and several other
minerals. The mining sector’s relative importance to the GDP was overturned by
manufacturing only in the 1950s and has afterwards been steadily decreasing. However,
Contd....

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