Pre-engagement

Accept engagement
Audit planning
*if controls are strong - TOC (test the operation)
- If controls are really strong - then do ST (less extensive)
- if controls are really weak- then ST( more extensive)
*if controls are weak - ST (extensive)
TWO TYPES OF CONTROL
1. General a) organization and operation control
Segregation of computer department and user
Data processing system - a system that processes the information into reports.
8-17, 8-18 (assignment)
Proper authorization in execution of transaction
Control totals (totals of users dept., then reconcile to the results of every pr
ocessing in each department) = results of processing
(Should be done regularly/daily)
b) systems development and documentation
Master file - will enter into the database
Transfer file - the customers file
c) Hardware controls
d) access controls
e) data and procedural controls
2. Application controls - transaction controls
Two types
Input and output