GEO - SHEREHE AIS Assignment 7 - Auditing Information Technology-Based Processes Question 1 An entity's system of internal control contains both manual elements and automated elements The characteristics of manual or automated elements are relevant to the auditor's risk assessment and further audit procedures based thereon. To identify and assess the riskes of material misstatement at the financial statement and assertion levels, it is therefore necessary for an auditor to obtain understanding of the entity's business operation and its environment, including the internal control. Required: (a) How do computerised systems enhance internal control? cx S: (b) Describe FOUR characteristics of computerised system with respect to risks and internal control