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Auditing Theory Auditing in A Cis (It) Environment
Auditing Theory Auditing in A Cis (It) Environment
Organizational Structure
Nature of Processing
The use of computers may result in the design of systems that provide less visible
evidence than those using procedures. In addition, these systems may be accessible
by a larger number of persons.
System characteristics that may result from the nature of CIS processing include:
a. Consistency of performance
CIS perform functions exactly as programmed and are potentially more
reliable than manual systems, provided that all transaction types and
conditions that could occur are anticipated and incorporated into the system.
On the other hand, a computer program that is not correctly programmed
and tested ma consistently process transactions or other data erroneously.
b. Programmed control procedures
The nature of computer processing allows the design of internal control
procedures in computer programs.
c. Single transaction update of multiple or data base computer files
A single input to the accounting system may automatically update all records
associated with the transaction.
d. Systems generated transactions
Certain transactions may be initiated by the CIS itself without the need for an
input document.
e. Vulnerability of data and program storage media
Large volumes of data and the computer programs used to process such data
may be stored on portable or fixed storage media, such as magnetic disks
and tapes. These media are vulnerable to theft, loss, or intentional or
accidental destruction.
CIS application controls which the auditor may wish to test include:
1. On-line computer systems are computer systems that enable users to access
data and programs directly through terminal devices.
2. On-line systems allow users to directly initiate various functions such as:
a. Entering transactions d. updating master files
b. Making inquiries e. electronic commerce
activities
c. Requesting reports
3. Types of terminals used in on-line systems:
A. General purpose terminals
1. Basic keyboard and screen 3. PCs
2. Intelligent terminal
B. Special purpose terminals
1. Point-of-sale devices 2. Automated Teller Machines
(ATM)