Electronic Audit Evidence

Definition - Electronic audit evidence is defined as any information created ,transmitted ,processed, recorded and maintained electronically that the auditor relies on to support the content of the audit report. -Electronic audit evidence includes accounting records, especially source documents, journals and general ledgers, supporting documents and any other data or information in electronic form useful for the audit .

1.Control and security techniques

Data Centre and network operations controls -review and test whether authorisation to gain access to the system is consistent with the segregation of duties in IT -review controls over work flow and error correction procedures. -review backup and recovery procedures Access security controls -inquire of IT management about and observe physical security controls . -observe whether access to remote computer terminals is restricted . -review data communication access controls . -inquire of IT management about fire detection devices . -review the IT departments disaster recovery plan , including insurance coverage .

2.Advances system
Online ,real-time processing Extensive database systems Distributed data processing Telecommunications, networking and electronic data interchange ( EDI) Electronic commerce

Online real-time system

Online systems provide immediate responses to an inquiry without changing data files .this systems rely heavily on networking and database technology. Example ATMs, just intime inventory systems , airline reservation systems ,and optical scanning of purchases in retail stores .

 Local area network( LAN) -this allows various groups within the organisation to communication (such as, via e-mail) with one another Wide area network( WANs) -an entity can send data to various groups( such as suppliers or customer ) outside the organisation directly by the computer via connection to WANs. Electronic data interchange(EDI) -allows organisations to transmit business transactions over telecommunication networks .the benefit of EDI include a reduction in paperwork and faster turnaround times for transactions .

Distributed data processing , networking, and electronic data interchange

3.computer-assisted audit techniques

Generalised audit software Custom audit software Test data Parallel simulation Integrated test facility Concurrent auditing techniques

Generalised audit software

Functions Performed by Generalised Audit Software -File or database access -selection operators -arithmetic functions -statistical analyses -report generation