Question

When the computerised information system is significant,the auditor should obtain an understanding of the environment and whether it may influence the various risks involved. Required:

(a) Explain five(5)internal control characteristic in a computerised environment

(b) Discuss any five(5) problems encountered by an auditor in computerised environment

(c) Identify an two(2) audit objectives in a computerised system

Answer 1

Answer a

Five internal control characteristic in a computerised environment:

• Proper transaction authorization.
• Input control needs to be instituted like input data needs to be verified for accuracy and completeness by a person different from the one who is keying in the data;
• There should be processing and output controls to ensure integrity of the transaction data is intact;
• No unauthorized access to computer files, data, etc. All kept under lock and key and proper log is maintain;
• Maker and checker concept are mandatory

Answer b)

Problems encountered by auditor:

• Complexity of the computer systems
• Non-existence of visible evidence
• Possibility of systematic errors
• Non retention of files and data
• Lack of audit trail. The tracing of individual transaction through the system from source to completion.

Answer c)

Audit objectives in computerised system:

• Has to ensure that the security aspects are properly maintained. Have to ensure that only authorised personnel are accessing the critical data of the organisation
• Source data that are inaccurate are properly identified and handled by the management effectively.