CMS 313 UNSTRUCTURED QUESTIONS PAPER 2

QUESTION ONE

a) Describe how AIS adds value to an organization by providing accurate and timely
information. (5 marks)
b) You are considering usage of audit software to undertake the substantive testing of data
files in the computerized sales and inventory systems .Discuss the challenges you might
encounter in the usage of audit software (5 marks)
c) Explain how you will apply the CAATS in the detection of frauds where employees
create non - existent suppliers and divert the payments to themselves (5 marks)
d) Describe the factors that the auditor should consider when planning the audit in
computerized systems (5 marks)

QUESTION TWO

a) Explain the stages followed by the auditors in the system based audit (6 marks)
b) Explain the types of feasibility studies undertaken by the auditors in the system
development life cycle of new Accounting systems (4 marks)
c) Explain the factors considered by the auditors in the application of CAATs when the
auditors carrying out audit (5 marks)