As one of several senior auditors at your firm of Certified Public Accountants and Registered Auditors you are competing for promotion to the position of Audit Manager.

Because many of the firm's clients rely on Information Technology (IT) to record and process business transactions, the firm's partner in charge wishes to ensure that the successful candidate has a good understanding of the impact of IT on the audit process.

All candidates have therefore been requested to submit a memorandum to the partner in charge which demonstrates an understanding of the following matters:

(i) The major objectives of computer applications in general terms.

(ii) The typical uses of computer audit software and the problems associated with such use.

(iii) The differences between monitoring controls and application controls.

Requirement:

(a) Outline the major objectives of computer applications in general terms.

(b) Evaluate, using examples, the typical uses of computer audit software and discuss the main problems associated with their use.

(c) Distinguish between monitoring controls and application controls, giving examples of each.