The challenge of EDP auditing
Article Abstract:
The purpose of auditing electronic data processing systems (EDP) is to confirm that they are performing according to corporate objectives and internal accounting procedures. There are five basic techniques for auditing EDP. The test data method involves running computer tests with test data. The integrated test facility method is similar to the test data method but uses production versions of application programs. Parallel simulation uses a program to simulate live applications. The audit subsystem is like the integrated test facility method, but creates a system control audit review file in which records are entered into a master file as each transaction is processed. Snapshots, mapping, and tracing techniques analyze computer codes as programs are executed. These methods may be combined, but management, EDP, and auditors must first define common goals.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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Improved internal controls can cut audit costs
Article Abstract:
The relationship between internal control ratings, the amount of interim testing and total audit hours was studied. The results showed a positive relationship between controls, testing, and total audit hours, which means that audit hours (and audit costs) can be reduced by improving internal operating controls over costs. 19 accounting firms were surveyed for information about the size of audit clients, the number of hours required to perform audits, assessments of the audit clients' systems of internal control, and the use of interim testing by the audit client. The data showed although sales volume is a starting point for predicting total audit hours, the average audit hours per million dollars in sales is determined by the presence or absence of internal controls.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
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How to cut travel costs
Article Abstract:
Companies can lower their travel costs by following the example of a Chicago-based Fortune 500 company. The company was able to lower its costs after an analysis was made of the total amount the firm spent on travel. This analysis can be accomplished through the use of one travel agency, which makes it easier to track expenses. An analysis of expense reports and credit card reports is useful as well. Companies can negotiate with travel services if they have a large volume of business travelers, or they can use a consortium of travel agencies to obtain the best rates. Companies with a travel policy will help their employees understand the need for cost control. One of the most important things a company can do to lower travel costs is to hire a travel manager.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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