Melinda Robinson, the director of internal auditing at Sachem Manufacturing Company, believes the company should purchase software to assist in the financial and procedural audits her department conducts. Robinson is considering the following software packages:

• A GAS package to assist in basic audit work, such as the retrieval of live data from large computer files. The department would review this information using conventional audit investigation techniques. The department could perform criteria selection, sampling, basic computations for quantitative analysis, record handling, graphical analysis, and print output (i.e., confirmations).

• An ITF package that uses, monitors, and controls dummy test data processed by existing programs. It also checks the existence and adequacy of data entry and processing controls.

• A flowcharting package that graphically presents the flow of information through a system and pinpoints control strengths and weaknesses.

• A parallel simulation and modeling package that uses actual data to conduct the same tests using a logic program developed by the auditor. The package can also be used to seek answers to difficult audit problems (involving many comparisons)

within statistically acceptable confidence limits.

REQUIRED

a. Without regard to any specific computer audit software, identify the general advantages of using computer audit software.

b. Describe the audit purpose facilitated and the procedural steps followed when using the following:

• GAS

• ITF

• Flowcharting

• Parallel simulation and modeling (CMA Examination, adapted)