1. Computer-Based Processing: Developing an Audit Assessment Approach
Chapter 6
Computer-Based Processing:
Developing an Audit Assessment Approach

2. Introduction Overview of computerized accounting systems
Client/server systems
Mass storage
Mass communication
Software

3. Client/Server Systems
Client portion of the system
Risks that come with the client portion of the system

4. Mass Storage
Paperless information systems
Risks
Advantages

5. Mass Communication
Communications
Technology
Global
Networks

6. Software Telecommunications Operating systems Application programs
Access control software
Database management system
Financial reporting on the Web

7. The Virtual Private Network
Demands of the “new economy”
Firewalls
Web server and back-office computing structures

8. Risks with VPN Unauthorized penetration Loss of messages
Interception and either destruction, modification, or copying
Denial-of-service attacks
Loss of processing

9. General & Application Controls
Pervasive
computer
controls
General
controls
Application
controls

10. General Control Concepts
Planning and controlling data processing
Controlling applications development
Controlling access
Maintaining hardware
Controlling electronic communications

11. Risk Analysis @ General Control Level
Unauthorized users.
Wrong programs.
Telecommunication systems.
Processing of wrong data.
Unauthorized personnel.
Securing of physical computer environment.
User errors.

12. Planning & Controlling the Data Processing Function
Segregation of duties within data Processing.
Adequate Documentation--A Key Control.

13. Controlling Applications Development & Program Changes

14. Controlling Access to Equipment, Data, & Programs
Access controls
Authentication
Security and Backup
Hardware controls
Telecommunication controls
Data transmission

15. Application Control Procedures
Approaches to Processing Transactions
Batch processing applications
Online processing
Database Management Systems

16. Application Control Procedures
Audit trail provisions
Input control procedures
Input & validation control procedures
Batch control procedures
Self-checking digits
Stored data references
On-screen input verification

17. Control Risk Assessment Process
Understanding the control structure
Testing the effectiveness of procedures
documenting evidence of controls
monitoring controls
testing controls

18. Electronic Data Interchange and Electronic Commerce
EDI
•Value-added network (VAN)
•Economic interdependence
•Total systems dependence
•Risks and control considerations
•Application controls