Tailoring Audit Program in a Computer Information System

Selriel By Selriel, 19th Nov 2015 | Follow this author | RSS Feed
Posted in Wikinut>Business>Accounting & Finance

An auditor should plan the audit so the engagement will be performed in an effective manner and minimize cost of conducting audit. The method of data processing employed may influence the procedures use by an auditor in his study and evaluation of accounting control. Data processing maybe manual or electronic data processing system (EDP). This article discuss audit using computer.

Auditing around the computer

Auditing around the computer is an auditing from source document to printed computerized records. This method is possible if the client maintain hard copies of financial data. It is a simple approach and similar to the audit of manually process records. It can be done by auditors who have technical knowledge of computers.

The auditor should audit around the computer when the application system is simple, batch oriented and the system uses generalized package as its software platform. That is why it is the most cost-effective way to undertake audit. It is best used when application system place high reliance on users rather than computer controls to safeguard assets, maintain data integrity and attain effectiveness and efficiency objective.

There are limitation in using auditing around computers. It does not provide information about the system's ability to cope with change and type of computer applicable is restricted.

Auditing through the computer

Auditing through the computer is auditing data in disc using the computer. Unlike the first method, this can be applied when EDP system procedures leaves no hard copy and when there is an absence of paper audit trail. Auditor may use documents usually processed by computer with predetermined result. The other form of auditing through the computer is reprocessing. In this method the auditor records through the computer the same documents processed by clients by using auditor-prepared computer program identical to the client's program or by using the clients's computer program that has been previously tested. The result of the auditor's reprocessing is compared to clients output.
The auditor uses audit through the computer when the application system is complex and processes large volumes of input and output that make extensive, direct examination of the validity of input and output difficult to undertake.

By using this method the auditor can be able to assess the system's ability to cope with change and the likelihood of losses or account misstatements will be having in the future. However, sometimes it can be costly, especially in terms of the labor hours that must be utilized to understand how the system works.

Auditing with a computer

Auditing with a computer is using a computer to audit manually processed and computerized records. The auditor computer audit programs are used for selection of samples, providing mathematical acuracy, providing completeness of records and comparison and etc. The use of computer as a tool will depend upon the integrity of the auditor.


Accounting, Activity, Audit, Audit Program, Auditor Method, Computer, Computer System, Edp

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author avatar Selriel
An accountant who is fond of writing poems.
I love being a writer, it gives us the opportunity to tell stories, to create a character, to design a situation and be God of our own writing.

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author avatar Marcus Writes
19th Nov 2015 (#)

We had this APT or audit process tool where audit program is made in line with the existing systems.

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