1. CHAPTER 15
AUDITING EDP SYSTEMS

2. EFFECT OF EDP ON ORGANIZATION
ORGANIZATION CHANGE
FACLITIES
STAFFING
CENTRALIZATION OF DATA AND SEGREGATION OF DUTIES
METHODS OF AUTHORIZATION
VISIBILITY
INPUT DATA
PROCESSING
TRANSACTION TRAIL

3. POTENTIAL FOR MISSTATEMENT
REDUCED HUMAN INVOLVEMENT
UNIFORMITY OF PROCESSING
UNAUTHORIZED ACCESS
LOSS OF DATA
POTENTIAL FOR IMPROVED CONTROL

4. EDP CONTROLS GENERAL CONTROLS APPLICATION CONTROLS
PLAN OF ORGANIZATION
PROCEDURES FOR DOCUMENTING, APPROVING SYSTEMS AND PROGRAMS
HARDWARE CONTROLS
ACCESS CONTROLS
APPLICATION CONTROLS
INPUT CONTROLS
PROCESSING CONTROLS
OUTPUT CONTROLS

5. UNDERSTANDING INTERNAL CONTROLS
OBTAIN UNDERSTANDING
FLOWCHARTS
EDP QUESTIONNAIRES
ERROR LISTINGS
DOCUMENT UNDERSTANDING
ASSESS CONTROL RISK

6. TESTING CONTROLS AUDIT AROUND COMPUTER AUDIT USING COMPUTER
TREAT COMPUTER AS CLERK
TEST SOURCE DOCUMENTS FOR EVIDENCE OF CONTROL
AUDIT USING COMPUTER
TEST DATA APPROACH
INCLUDE ALL RELEVANT CONDITIOND
CLIENT PROGRAM
PARALLEL SIMULATION
AUDITOR PROGRAM REPLICATES CLIENTS
CLIENT DATA PROCESSED

7. GENERALIZED AUDIT SOFTWARE
AUDIT TOOL
PERFORMS VARIOUS DATA MANIPULATION FUNCTIONS
USING SOFTWARE
OBJECTIVE SETTING
APPLICATION DESIGN
CODING
KEY ENTRY
PROCESSING

8. USES OF GENERALIZED AUDIT SOFTWARE
VERIFY EXTENSIONS
EXAMINE RECORDS FOR CORRECTNESS
COMPARE DATA ON SEPARATE FILES
SUMMARIZE OR REORDER DATA
COMPARE AUDIT EVIDENCE WITH COMPANY DATA
SELECT AUDIT SAMPLES
PRINT CONFIRMATIONS

9. MICROCOMPUTERS IN AUDITING
USES OF MICROCOMPUTERS
PREPARE TRIAL BALANCES AND LEAD SCHEDULES
PREPARE WORKING PAPERS
CALCULATE ANALYTICAL PROCEDURES
PREPARE AUDIT PROGRAMS
UNDERSTAND INTERNAL CONTROLS
PERFORM AUDIT SAMPLING
MANAGE ENGAGEMENTS