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Explain six ways in which audit software could be used in an audit.

      

Explain six ways in which audit software could be used in an audit.

  

Answers


Kavungya
• Calculation checks: the program adds the value of open items on a file to ensure that they
agree with control records which are maintained.
• Detecting violations of systems rule for example the program checks all accounts on the
sales ledger to ensure that no customer has a balance above a specified credit limit.
• Detecting unreasonable items for example check that no customer is allowed trade
discount of more than 50%.
• Conducting new calculations and analyses for example obtaining a statistical analysis of
stock movements to identify slow moving items.
• Selection of items for audit testing.
• Completeness checks for example checking continuity of sales invoices to ensure they are
all accounted for.

Kavungya answered the question on May 15, 2019 at 08:35


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