CPAs may audit around or through computers in the audit of the financial statements of clients who use IT to process accounting data.
a. Describe the auditing approach referred to as “auditing around the computer.”
b. Under what conditions do CPAs decide to audit through the computer instead of around the computer?
c. In auditing through the computer, CPAs may use test data.
(1) What are test data?
(2) Why do CPAs use test data?
d. How can the CPAs be satisfied that the computer programs presented to them for testing are actually those used by the client for processing accounting data?