Management and Administrative Sciences Review www.absronline.

org/masr
ISSN: 2308-1368
Volume: 2, Issue: 5, Pages: 423-430 (2013)
© 2013 Academy of Business & Scientific Research

 Research Paper
The Impact of Information Technology on the Auditing Profession

Dr. Anas Ali Al-Qudah1*, Dr. Ahmad Yahiya Baniahmad2, and Dr. Nawwaf Al-Fawaerah3

1&3. Assistant Professor, Departments of Finance &Accountancy, Jadara University, Irbid, Jordan.
2. Assistant Professor, Irbid National University, Irbid, Jordan.

The role of information technology in the process of improving the efficiency of audit has a
negative effect on the quality of the review process, But the derived benefits from use the
recent methodologies Auditing in the field of actual efficiency associated mainly with the
disposal of the old methods and procedures that associated with old methodologies more
than related to the methods and procedures for the modern methodologies. It also we
provide get to another result that the use of information technology in various fields of
auditing will help to improve the efficiency and effectiveness of the review process, despite
the existence problems that impede embarking to make serious decisions in order to exploit
information technology leads to improved efficiency and effectiveness.

Keywords: Information Technology; Information Systems; Auditing; the Audit

Profession; Accounting Systems;

INTRODUCTION
The beholder to information technology in various It has become the information technology’s
aspects of life will find that it enables us to concept is the most important method used by
improve many aspects of the affairs of life at the different types of businesses-profitability & non-
individual level and at the community level and in profit sectors- in its different activities whether it's
various fields of business, especially on the private in the planning, supervision, documentation,
sector in the profitability aspects. administrative, accounting or other aspects of the
business, while at the same time the review
The successful & effective information systems
process witnessed a growing developed in the
perform services substantial to communities, they
keep up of developments in information
help in building a successful organizations, and
technology in those firms and companies that have
help these institutions to create a successful
it.
relationships with its customers, and thus get a
And as a result for above introduction we can see
rewarding share in market competition, and help
it was emerged the so-called audit using
in various decision processes and improve
accounting information systems, and this field
productivity and encourage global competition, as
have a developments ongoing and increased
well as considered the information technology one
interest in the audit profession, then were issuing
of the sectors that has become a major supporter of
professional standards that guide the auditors in
the economy in countries that have done well used
this area. As for the use of IT in the review process,
effectively and here shows the role of information
which is called Audit Automation was less
technology in improving the economy as a whole.

*Corresponding author: Dr.Anas Ali Al-Qudah,

Assistant Professor, Departments of Finance, Jadara University, Irbid, Jordan.
E-Mail: D_Anas_AlQudah@yahoo.com
423
The Impact of IT on the Auditing Profession
sophisticated but interest in it has increased over
the past two decades.
DEFINITION OF INFORMATION
TECHNOLOGY
The term of Information Technology means the
use of modern technologies in manage and treat of
the vast amount of data on the political, economic,
scientific and social life. And the meaning of the
information is the facts resulting from the
processing of data. Hence, there is a difference
between information and data. The Information is
data has been processed and give its owner the
opportunity to take the right decision at the right
time. Thus, the information society is a society that
deals with information continuously, sophisticated
and effective. It has become known to our present
era of information technology. When we talk about
information then we mean talking about
information technology.
The term of Technology mean is the computer and
related communications equipment and computer
software enable to deal in an independent
framework or networking with other devices. The
information technology is the use of modern
technology tools and one of them by the computer
in data collection and processing. Here Informatics
mean that there are three basic elements: physical
entity like a computer of and related equipment
and devices, and software that run on computer
operation and do different tasks, and of
knowledge resources (Conference at Al-Najah
University in Palestine)
THE AUDIT USING INFORMATION
TECHNOLOGY
The auditor reviewed the electronic systems by
electronic audit programs and these programs are
designed for the implementation the review
process might be general which mean can be used
in any review process, or especially, which are
tailored to the specific review process. These
programs are several tasks to implement the
review process, including the following (Ali
Thunaibat, 2003):
Research Paper
i. Selection of statistical samples of different
processes and tests their validity from the
moment of registration until the balance.
ii. Test the consistency in the implementation
of accounting principles and its methods.
iii. Test the consistency in the application of
accounting principles and methods.
iv. Make schedule ages of Accounts receivable
and estimated bad debts reserve.
v. Select a sample of Accounts receivable and
processing of confirmations to be sent to
them with an indication of the type of
authentication (positive or negative).
vi. Make comparisons and extraction the
accounting ratios for different predictions.
Insert Figure 1: The review process
The Figure No:1 shows the review process by
electronic audit programs and these programs are
designed for the implementation the review
process might be general which mean can be used
in any review process. (From the preparation of
Researchers)
THE CAPACITY OF COMPUTER SYSTEMS IN
THE REVIEW PROCESS
parallel with the development of computer uses of
two important changes causing them the
complexity of the process of collecting evidence, is
the first in the recording of accounting data on
punched cards or magnetic discs or tapes can only
be read by computers, while the second involves a
steady increase in the amount of data required
inspection and audited. In light of these problems
the auditor should choose between three
alternatives for the collection of audit evidence,
namely (Alameh Ameen, 1986):
i. Review with the computer where made the
tests on a sample of the original documents
and recalculates the value of some elements
of the financial statements under audit to
verify the proof of financial operations
accounting records.
ii. Assessment of the methods of control
contained in the computer software used
424
Manag. Adm. Sci. Rev.
ISSN: 2308-1368
Volume: 2, Issue: 5, Pages: 423-430
by the client in the processing of
accounting data.
iii. Use the computer after completion the
evaluation of the internal control system to
read the selection and processing of data
stored sample by the machine language on
computer records.
THE AUDIT OBJECTIVES USING IT
Auditing aims by using information technology to
achieve a set of objectives which accomplish the
purpose of review, as follow (William Thomas et
al, 2000):
I. The role of the auditor on the diversity and
size of the process in the Corporation and
accuracy may be available in their
operations.
II. The status of auditor in organization and
the scope of their work.
III. The Technical Knowledge of Auditors.
IV. The Internal auditing and to avoid cheating
and falsification.
V. The relationship between internal audit
and Oversight delegate.
VI. The Auditing effectiveness.
Insert Figure 2: The Audit objective
By return to the figure No:2, we can see that shows
the main objectives which accomplish the purpose
of review using the IT, beginning from the role of
Auditor down to Auditing effectiveness. (From the
preparation of Researchers)
The Impact of IT on Accounting Systems and
Internal Control Systems
Information technology developed considerably
during past twenty years, has also increased the
number of organizations that rely heavily on
computer systems operating in the electronic data.
And when start using computers to run the
accounting data, the number of organizations that
use those computers minimal Most of the
computers is characterized by sizeable size and
there were most of those organizations
management called "Computer Manager" is based
workers by collecting appropriate data in hand
other sections then they convert it to another
picture be understood by computers. (Abdel Fattah
Naji, 1998)
It can clarify the developments that have occurred
in information technology are as follows:
i. The 1ststage: a large increase in the capacity
of computers to run and save the data
ii. The 2ndstage: the expansion of computer
networks, allowing direct communication
between computers to each other, and
allowing the exchange of input and output
through the network.
iii. The 3rdstage: : Methods of test processes
electronically, Test method aims processes
electronically to test the validity of client
programs and determine its ability to
detect errors and correct to distinguish
between processes is correct. This is that
the auditor prepares a certain number of
sham operations, similar to the actual
operations of the client, and then operated
using the client software and electronic
organs.
CONTROL SOFTWARE (as a way for review)
Used as a complementary or alternative test
method processes electronically and is done by the
references using special programs similar to client
programs dubbed the "control programs" to restart
the actual operations ongoing project under
review, then revise, and then compares the output
control software outputs client programs The
following figure (3) shows the flow control
philosophy from the standpoint of Department of
art Studies and research - Office of Financial
Supervision - Jordan.
Insert Figure 3: The Control Software
The Figure No: 3 show the flow control philosophy
from the standpoint of Department of art Studies
and research as it as we took it from the Office of
Financial Supervision in our country, and it
includes three main sections: the Management
control & Accounting control & internal control. .
(From the preparation of Researchers)
Al-Qudah et al.
The Impact of IT on the Auditing Profession
Develop Audit procedures accompanied with
Information Technology
a) The importance of developing the audit
procedures in the use of the computer:
i. Similarity of automated auditing standards:
The Auditor has to be affected by the
presence of specific criteria in the
automated system such as a chart of
accounts, having the appropriate financial
reporting in the accounting system, and
documentary courses.
ii. Similarity the mechanism of internal
control.
iii. Internal control with no manual
bookkeeping and with the computer only
computer exists.
iv. Control structure for the auditor.
b) the impact of cultural, regulatory and
competition factors on the operation of
information technology:
"The competition is one of the key elements
affecting in the use of information
technology and thus is one of the key
variables that must be taken into
consideration when study the possibility of
the application of information technology
in all activities"(Hassam El Din Khaddash,
2003).
There is a strong needed for the use of
information technology in the review
process that means they facilitate the
review process and reduce the cost needed
to make, and use of information technology
to help small enterprises to the
development and growth too.
The efficiency and effectiveness of the Audit
process
The review process consists of two basic functions
relate to evidence review, the first function relates
to the collection of evidence, and the second relates
to the design of the evidence that has been
collected, has added some other function key is
preparation of the report, but was seen by some
Research Paper
preparation of the report the most important
function of the audit has focused standards
international audit the importance of collecting
adequate and appropriate evidence and credible so
that references be appropriately opinion about the
fairness of the financial statements.
As the resources available to the limited references
in all cases, the auditor in charge of directing
limited resources better guidance to gather
evidence that would enable it to exit the
appropriate result. Although the international
auditing standards developed some guidelines for
the appointment of the Auditor to assess the
adequacy and appropriate and credible evidence,
but the referee professional references is very
important in this area.
What gives him the references of weight relative to
the evidence in terms of its appropriateness and
adequacy and the extent of the reliability of the
new methodology in the review and expansion of
the introduction of information technology in the
review process, which means that if you were
given weight relative amount small for manual
review of certain property adequacy and
appropriate, this means The new methodology and
new technology used in the process of gathering
evidence and evaluation will lead to improved
efficiency and effectiveness of the review process,
but some considered the use of modern
technologies in the review process, which
including the use of information technology leads
to overcome some of the shortcomings of the
human in the case of the exercise of judgment of a
professional, Thus it can improve the efficiency
and effectiveness of the audit process.(Kamal
Khalifa, 1998)
The use of information technology in the review
process leading to reduce the time spent on
operations clerical tasks calculations for many
things such as: audit risk and sample sizes audit,
and thus lead to reduce the time and costs and
improve the quality of the review process, and
provide the foundations of a better exercise
professional judgment by auditors. As references
can be used computer programs that can
Conversation client programs, this process is
426
Manag. Adm. Sci. Rev.
ISSN: 2308-1368
Volume: 2, Issue: 5, Pages: 423-430
useful in the field of rapid implementation of the
audit and accuracy, as well as the use of references
for programs to store and retrieve information and
programs analytical review using a computer can
be references from making comparisons and
analyzes between the actual figures and planned,
has References used special programs assist in the
testing process and in the process of opinion
formation which uses a degree of professional
judgment which helps to support the decision-
making process carried out by the Auditor and
these programs are called the so-called expert
systems.
Many people look at that the work of the auditors
became confined to routine procedures, so the
offices and audit firms may seem unable to achieve
the aspirations of the different groups that depend
on auditor's report, and therefore the use of
information technology in the review process is a
qualitative addition that should be added to the
review of regulations calculated and help in
improving the image of the auditors and the
profession as well as to improve the efficiency and
effectiveness of the actual audit process.
The Characteristics of Computerized System in
Operating Process
We can summarize the most important
characteristics associated with the mail system to
run data as follows: (Hardware and
Microcomputer, 1995)
a) Package documentary and records associated
with the process:
They represent a series of processes and tools of
evidence linking the balance accounting or
summary of the results for certain operations
originally associated or calculations for them, and
in some systems accounting using the computer,
the original set of documents, the process may
appear for a limited period only, or data appears
on the computer screen to read only.
b) Consolidated operating operations:
All operations are subject to similar accounting
standard operating conditions, and if developed
computer programs properly and correctly will
lead to the exclusion of all regular clerical errors
associated with manual operation.
c) Separation of functions:
It may be for the use of electronic computer
significant impact on the concept of separation of
duties, as a lot of routine accounting control
procedures that are usually performed by running
sections can be performed even to some degree, by
the operating section of electronic data.
d) Methods public control over the information
processing and segregation of duties
automatically:
The users Microcomputer devices are usually able
to do the completion of two or more of the
following functions in the accounting system:
i. Commencement of operations and the
adoption of the source documents.
ii. Enter the information and data in the
system.
iii. Restart your computer.
iv. Change programs and information files.
v. The use or distribution of information and
data emerging.
vi. Modify the operating systems.
These functions are usually separated in computer
environments by means of appropriate public
control over the information processing
automatically, if the lack of separation of functions
in environment Microcomputer may result in the
following:
i. Allowing errors to enter the system
without detection.
ii. Allowing the occurrence of fraud and hide.
The existence and use of monitoring and control
access to systems, programs and data files must be
associated with controlling and monitoring the
operations of the input and processing operations
and the operations of the output information, and
if the audit among administrative policies and the
Al-Qudah et al.
The Impact of IT on the Auditing Profession
means mentioned above is to compensate for
weakness in the means of control and public
oversight of information processing automatically
in micro devices, and control and effective control
include the following:
a) Registry system of transactions and
balanced of groups.
b) Direct supervision.
c) Work adjustments to the total number of
records or actually total.
Although, control can be created by an
independent function of the device and that the
business and the following tasks:
a) Receive all the information and data for
processing.
b) Make sure that all the information certified
and registered.
c) Review all the errors that have been
discovered during treatment and make
sure to correct them.
d) Confirm the validity of the output
distribution process.
e) Identify and restrict physical access to
application programs and data files as well.
SUMMARY AND CONCLUSION
According with reconnaissance and discuss the
role of information technology in the audit notes
that the role of information technology in the
process of improving the efficiency of audit has a
negative effect on the quality of the review
process.
But the benefits which derived from the use of
methodologies recent review in the field of actual
efficiency mainly linked to the disposal of the
methods and procedures ancient methodologies
own ancient than with methods and procedures
for the same modern methodologies.
It also we provide get to another result that the use
of information technology in various fields of
auditing will help to improve the efficiency and
effectiveness of the review process, despite the
existence problems that impede embarking to
make serious decisions in order to exploit
information technology leads to improved
efficiency and effectiveness.
Research Paper
REFERENCES
Levin Arens,, James laubuka, translation:
Mohamed Mohamed Abdel Qader, Ahmad
Hamid pilgrims, an integrated audit entrance,
Dar Mars, 2002.
Abdel Fattah Mohamed saucer, Kamal Khalifa
Abu Zeid, the audit note and deed, a young
university institution.
Khalid Amin Abdullah, aware of the audit,
Serenity House, 2000.
Abdel Fattah Mohamed saucer, Naji
Mahmoud Darwish, revision between theory and
practice, Al Bait University, 1998.
William Thomas St., Emerson Htki,
translation: Ahmad Hamid pilgrims, Kamal al-
Din Said, audit between theory and practice, Dar
Mars, 2002.
Hossam El Din Khaddash, William fasting,
how to accept the auditors for the use of
information technology in the audit,
Management Science Studies, Volume 30, Issue
2, 2003, p 279: 285.
Thunaibat, the extent and effectiveness of the
use of information technology in the audit
process, the College of Administrative Sciences,
Volume 30, Issue, 2003, p 253: 258.
Hussein Faraj Shaban, the development of
accounting and auditing in the use of the
computer, the Arab chartered accountant, Issue
XXXIII, 1987, p 22: 28.
Secretary of the mark, the objectives and
advantages of audit programs on informatics,
Arabian chartered accountant, Issue VI, 1986, p
24: 31.
Peter Gillette, fraud, and the auditor's
information, the Arab chartered accountant, Issue
VI, 1986, p 73: 68.
Independent Microcomputer bodies, the Arab
chartered accountant, No. 92, 1995, p 31: 35.
428
Manag. Adm. Sci. Rev.
ISSN: 2308-1368
Volume: 2, Issue: 5, Pages: 423-430

APPENDIX

Figures

Figure 1: The review process

Statistical
Samples

Reservetions The Audit using Test the

consistency in
& Information the
Estimations Technology Accounting

Comparisons
and Extraction
the Accounting
Ratios

Al-Qudah et al.
The Impact of IT on the Auditing Profession Research Paper

Figure 2: The Audit Objectives

Avoid Cheating
Technical and Falsification
Knowledge of
Auditors Internal Audit
and Oversight
The Role of the
Delegate
Auditor

The Status of The Auditing

Auditor Effectiveness.

Figure 3: The Control Software

The Control software

Management Accounting
Internal Control
Control Controls

Raise Provide Asset protection

production accuracy in data from theft and
efficiency and reliability embezzlement

Safety of the Terms of

Budgets and
accounting reference
standard costs
system separation

430