When auditing a computer accounting system, the independent auditor should understand how the use of computers affects
Question:
When auditing a computer accounting system, the independent auditor should understand how the use of computers affects the various characteristics of internal control. The indepen dent auditor should be aware of those control procedures that are commonly referred to as "general" controls and those that are commonly referred to as "application" controls. General controls relate to all computer activities, and application controls relate to specific accounting tasks.
Required:
a. What are the general controls that should exist in computer-based accounting systems?
b. What are the purposes of each of the following categories of application controls?
(1) Input controls.
(2) Processing controls.
(3) Output controls.
Step by Step Answer:
a General controls that should exist in computerbased accounting systems include Access Controls These controls ensure that only authorized individuals have access to the system and its data This includes user authentication such as passwords or biometrics and access restrictions based on roles and responsibilities Physical Controls These controls safeguard physical access to the hardware and infrastructure supporting the computerbased accounting system including servers data centers and networking equipment Change Management Controls These controls govern changes to the system including software updates patches and configuration changes to prevent unauthorized alterations that could compromise data integrity or system security Backup and Recovery Controls These controls ensure that data is regularly backed up and that procedures are in place to restore data in the event of a system failure data loss or disaster Segregation of Duties Similar to traditional accounting systems segregation of duties in computerbased systems ensures that no single individual ...View the full answer
Auditing Concepts And Methods A Guide To Current Auditing Theory And Practice
ISBN: 9780070099999
5th Edition
Authors: Mcgraw-Hill
