ACTIVITY CHAPTER 6-PROFE04

1. What is CIS environment?

- A CIS environment exists when a computer of any type or size, whether run by
the entity or by a third party, is engaged in the processing by the entity of financial
information relevant to the audit. The CIS environment aids in the development of audit
procedures that minimize audit risk. To acquire adequate evidence material, the auditor
can employ manual audit procedures, computer-assisted audit techniques, or a
combination of both.

2. What is the importance of CIS application controls?

- The importance of CIS application controls is to establish specified control
processes for application systems to offer reasonable assurance that all transactions
are approved, documented, and processed completely, accurately, and on time. Relate
to each CIS's transactions and status information. Accounting records are checked for
completeness, validity, and accuracy using computer information systems.

3. What is network environment?

- A network environment is a communication system that allows computer users
to share hardware, software, data, and audio and video communications. For example,
if we using network connected peripheral devices like printers, scanners and copiers, or
sharing software between multiple users, saves money. Sharing a single internet
connection, it is cost efficient and can help protect your systems if you properly secure
the network.

4. Discuss one example of computerized audit tools?

AUDIT SOFTWARE
- Computer applications that process audit-relevant data from the client's
accounting system. Audit software is a sort of computer application that can be used to
execute a variety of audit management tasks. Database sampling and the creation of
confirmation letters for clients and vendors are two of the most prevalent functions.

5. What is Electronic Data Interchange (EDI)?

- Electronic Data Interchange (EDI) is a technique that allows one firm to transfer
information to another company electronically rather than on paper. Trading partners
are business entities that conduct business electronically. Through an electronic
communications network, transactions are exchanged electronically from one entity's
computer to another entity's computer. Electronic transactions, for example, have
replaced checks as a method of payment in electronic fund transfer (EFT) systems.