Salt and Pepper Enterprise (SPE) Ltd is a small manufacturing company with approximately twenty employees and uses manual accounting system. Due to business expansion, SPE install an advanced IT-based accounting system to replace its manual system

a) Explain how the various components of SPEs internal control on the accounting system have been affected by the adoption of an IT-based accounting system.

b) State how the use of the computer by SPE affects the work of the auditor in respect of internal controls and audit evidence.