Mendoza, Jhomar G.

BSA-3A

There will be no doubt that standard computer audit program will be in general use in the near
future, since our technology grows rapidly and continuously. Computerization of audit on the
auditing and assurance industry has a positive and negative impact. Computerization of Audit
has the impact on Examination of Data that will be more rapid and accurate also relatively cheap
to use once set up costs have been incurred. Computerization of audit has a greater accuracy or
the chances of having the errors on computing will reduced to minimum. There is what we called
“Systems Generated Transactions” that you are not going to compute it manually, you are just
computing with a formula so that you will do the thing easier and faster. Computerization of
audit makes the process neat and clean that is prepared by the machine and work can be done
with minimum staff at a minimum cost. But, Computerization of Audit has many risks such as
“Loss of Audit trails” that with the use of computers it will led to the disappearance of physical
documents that will hard for us to track the audit trail. Also, Difficult to detect the fraud by the
computer as the huge amount of information stored in the computer system, as well as
unforeseen tracks of the accounting process. Computerization of Audit has a possibility of
modification in the accounting data without leaving a material a material effect. There are
Disadvantage and Advantage of Computerization of Audit. First on the Advantage is the
Consistency of Performance, which is you are consistently performing the exactly on what is
programmed. Second on the Advantage is the Concentration of Duties, which there is a proper
segregation of duties since it is program, errors from recording will be minimized. Last on the
Advantage is the Systems Generated Transactions is that the transactions maybe initiated by the
Computerized Information Systems itself without the need for an input document. The
Disadvantage of Computerization of Audit is also the Consistency of Performance, Since it is
consistently performing what is exactly programmed there are the disadvantage on it, If you’re
performance is not doing good or great it would be the disadvantage on the Computerization of
Audit, Since, the performance has an error you don’t need to do it consistently you need to have
the changes on it, to be able to make the performance good. Second on the Disadvantage is the
Vulnerability of data and program storage media, Since all of the information and the system on
the computer flows on the Storage media, when the hackers find out where the storage media all
the information or the data will be loss. The Third Disadvantage is the Ease of access to data and
computer programs is that the data and computer programs may be accessed and altered by
unauthorized persons leaving no visible evidence. The last Disadvantage is the Lack of audit
trails, like what I’ve said above, it has many risks such as fraud, cheating and so on. since, there
is no physical documents it will hard for us to track the audit trail.