INFORMATION TECHNOLOGY IN

AUDITING

A REVOLUTIONARY CONCEPT

INTRODUCTION

• Maintenance Of Accounts In Computerized Networks

• Process Of Collecting And Evaluating Evidence

• Examinations Of Controls Within Computerized Environment

REASONS FOR IT AUDITING

• Absence Of Input Documents

• Lack Of Visible Transaction Trail

• Lack Of Visible Output

• Accessibility Of Data And Computer Program

APPROACHES

• The Black Box Approach

• The White Box Approach

• Computer Program Approach

IT AUDIT PROCESS

• Obtain An Understanding Of The Organization Environment

• Identify Risks That Result In Material Mis-statement

• Evaluate Organization Response To Those Risk

• Asses The Risk Of Material Mis - statement

• Evaluate Results And Issue Reports

CAAT

• Computer Assisted Audit Techniques

• Tool For Auditors To Gather Evidences Independently

• To Gain Access And To Analyze Data For Pre-Determined Audit Objective

• Technical Auditing Working Papers

AUDIT SOFTWARE

• Generalized Audit Packages

• Purpose Written Software

Embedded Audit Facilities

Program (parallel) Simulation

• Utility Programs

TEST DATA

• Test Packs

• Integrated Test Facility

• Data File Interrogation

MISCELLANEOUS TECHNIQUES

• System Activity File Interrogation

• Program Code Analysis

• Flow Chart Review

A C I

• Will Organization's Computer System Be Available For Business At All Times When Required? (Availability)

• Will Information In The System Be Disclosed Only To Authorized Users? (Confendiatility)

• Will The Information Provided By The System Always Be Accurate, Reliable, And Timely? (Integrity)

CONTROLS

• Input Controls

• Processing Controls

• Output Controls

MANUAL VS COMPUTERISED AUDIT

• Complexity Of Accounting System

• Audit Trails

• Internal Control Systems

• Audit Planning

• Consequences Of Errors

LIMITATIONS

• Knowledge Of Computer Programs

• Understand The Computer Program Language

• Very Expensive

• Dependence More On Other Persons

• Settings of Software

THANK YOU

BY,PREM KUMAR .S.PRADEEP KUMAR .N.SURESH BABU .R.KIRAN KUMAR