a) Manual technique that the auditor could use in the audit of a computer based accounting
system
- Review of exception reports. The auditor attempts to confirm these with other data e.g.
comparison of an outstanding dispatch note listing with the actual dispatch notes.
- Totaling. Relevant totals for example for debtors and creditors can be manually
verified.
- Re-performance. The auditor may re-perform a sample of computer generated
calculations e.g. for depreciation and interest expense.
- Reconciliations. These will include reconciliations for computer listings with creditor's
statements, bank statements, actual stock and personnel records.
- Comparison with other evidence such as results of debtoes circularization, attendance
at stock take and physical inspection of fixed asset.
b) Ways auditor's overcome problems of audit trail.
i) Auditors should have special print Outs for auditors, remember the need to be
consulted at the design stage.
ii) Inclusive audit facility: This means putting in the programs special audit instructions
that enable the computer to carry out some audit tests and produce print outs specially
for the auditor.
iii) Clerical recreation: Given unlimited time and man power, maintain the possibility to
recreate manually the audit trail. This would obviously be a very tedious exercise.
iv) Total testing and comparison: It is possible to- compare results with other data,.
budgets, previous periods and industry averages.
v) Alternative tests: We can perform stock takes, debtors' circularization and examination
of the condition of fixed assets.
vi) We can use test packs to verify program performance.
Kavungya answered the question on May 15, 2019 at 08:32
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Date posted: May 15, 2019. Answers (1)
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