1- Online Auditing Techniques

Question 1

Online Audit Techniques

Answer 1

Integrated Test Facility
System Control Audit Review File
Snapshot Technique
Audit Hook
Continuous and Intermittent Simulation

Question 2

Integrated Test Facility (ITF)

Answer 2

A fictitious entity is created in a live environment . The auditor can enter dummy or test transactions to verify the processing and results of these transactions for correctness

Question 3

System Control Audit Review File (SCARF)

Answer 3

An embedded (inbuilt) audit module is used to continuously monitor transactions. 
The technique is used to collect data for special audit purpose.

Question 4

SCARF files

Answer 4

records only those transactions which are of special audit significance

Question 5

Snapshot Technique

Answer 5

In this technique, snaps (pictures) are taken of the transactions as transaction moves through various stages in the application system

In this technique, three important considerations are (i) location where snaps to be taken (ii )time of capturing snaps and (iii) reporting of snapshot data captured.

Question 6

Audit Hook

Answer 6

These are audit software that captures suspicious transactions. Criteria for suspicious transactions are designed by auditors as per their requirement.

Question 7

When is audit hook useful

Answer 7

Audit hook is useful when early detection of error or fraud is required

Question 8

Continuous and Intermittent Simulation (CIS)

Answer 8

This technique can be used whenever the application system uses the database management system (DBMS

DBMS reads the transaction which is passed to CIS. If the transaction is as per selected criteria, then CIS examines the transaction for correctness