Computers - New Tests of Control for the Auditor
Article Abstract:
The dependency of the auditor, and of business as a whole, on the data processing operations is ever increasing and becoming more complex. The computer systems now have decision-making capabilities as well as recording financial data. To do an efficient job, the auditor must improve his computer skills in auditing computer programs and evaluating audit software. The auditor must not minimize assessment of controls within the data processing environment. In order to do this effectively, the auditor needs to survey the client's system each year. This involves checking security of stored data and the programs used. Good controls need to be judged to assess the amount of risk the auditor is assuming in relying on data from computerized systems. Smaller systems need to be tested more thoroughly. Management should be advised concerning improvements in control. This should be used in the planning stage particularly.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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Ignore history at your peril
Article Abstract:
The history of accounting in Great Britain can provide valuable information on current accounting practices and laws. Accounting history can be used as: a recreational pursuit; an explanation for why particular practices have been adopted; as a predictor for future accounting trends; and as a technique for solving present day problems. Some of the persistent problems in accounting history include the form and content of published accounts, and the failure to publish group accounts. One of the more recent and pressing problems is the Companies Act of 1981 and and its increased legalization of accounting rules. By increasing the legal requirements of accounts, the Act has changed the emphasis from one of presenting 'the true and fair view' for investors to one of manipulating the books as much as possible as long as they remain within the law.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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Ignore Program Procedures at Your Peril
Article Abstract:
The programmed procedures are important to an auditor. He must either establish to his satisfaction that data has been processed properly regardless of the way the programs have operated, or he has to carry out tests designed to satisfy himself that the programs have continued to operate properly throughout the period under review. The technique includes: manual reperformance, direct simulation, test data, program code analysis, and audit software. In addition to the above techniques, he should undertake an initial planning survey of computer systems.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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