Shannon Bracken, CPA, is considering internal control for the Rumford Company, a December 31 year end company. Rumford's purchasing, billing, receivables, payables, and job-order cost accounting systems are fully computerized.

Required: 

Respond to each of the following:

1. Provide an overview of an auditor's consideration of internal control in a computerized system.

2. From the facts in the case, is Bracken more likely to audit around or through the Rumford Company's computer system? Why?

3. What is the purpose of an auditor's preliminary review of a computer system?

4. What is the purpose of tests of prescribed computer controls, and what specific questions are addressed by tests of controls?