Andrea Farell, a local CPA, has been approached by Whitely Corporation concerning audited financial statements for the year ended September 30, 1999. Whitely, a relatively new company, processes accounting data by computer Not having been exposed to computers previously, Farell enrolls in professional development courses designed to provide participants with an understanding of:

a. A language identical to the one used by Whitely in dedicated software.

b. How data is processed.

c. How to test controls typically used in computers and how to use the computer to achieve compliance with generally accepted auditing standards.

d. Auditing problems peculiar to computers.

e. The types of system documentation typically available for computers.

Farell completes the rather extensive course and is pleased with both the quality of instruction and the depth and extent of coverage.

Required:

1. The first general standard of GAAS requires that an auditor have adequate technical training and proficiency. Has Farell complied with the standard? Discuss.

2. Why is training in computers necessary before Farell can accept the Whitely engagement?

Discuss.