Information Technology & Auditing Flashcards
What are risks of using an IT system?
Inaccurate data processing
Unauthorized data access
Excessive access privileges
Unauthorized data modification
Failure to update systems
Inappropriate manual intervention
Data loss or inaccessibility
What are benefits of using an IT system?
Consistent application of business rules
Enhanced information timeliness and accuracy
Advanced data analysis
Enhanced performance monitoring
Reduced risk of control circumvention
Effective segregation of duties
What is auditing through the computer?
Auditing through the computer is where auditors utilize various methods to test the integrity and functionality of a client’s application programs directly.
What are two types of auditing through the computer?
Auditing with actual client program
Auditing with test data
What are the types of auditing with actual client program?
Transaction tagging
Embedded audit modules
Controlled re-processing
What is transaction tagging?
It is auditing with actual client program. Client data in client software.
Auditors electronically mark specific transactions and follow them through the client’s system.
What is embedded audit modules?
It is auditing with actual client program. Client data in client software.
Auditors participate in the system design and embed sections in the application program code that collect transaction data for audit procedures.
What is controlled re-processing?
It is auditing with actual client program. Client data in client software.
Auditors use a verified version of the client’s program to re-process transactions and compare the results with the original outputs.
What are the types of auditing with test data?
Test data approach
Integrated test facility
What is the test data approach?
It is auditing with test data. Auditor’s data in client software.
Auditors introduce a dataset where they already know the expected output, allowing them to assess whether the system is processing data accurately.
What is an integrated test facility?
It is auditing with test data. Auditor’s data in client software.
Similar to the test data approach, but in ITF, hypothetical data is processed alongside live data within the client’s system.
What is auditing around the computer?
Auditors do not directly interact with the client’s application programs. Instead, they focus on verifying the input and output data without considered the internal workings of the application programs.
What is parallel simulation?
(Client’s data in auditor software)
Auditor re-processes the client’s live data using software owned or purchased by the auditor, and then compares the results with the client’s output.
What is computer assisted audit techniques (CAATs)?
CAATs refers to the use of computerized tools and methods by auditors to perform audit tests of both controls and substantive data.
What are advantages of using CAATs?
Large data analysis
Audit trail navigation
Extended audit procedures
