You are an audit supervisor at Tisa & Sham public accounting rm, and currently initiating the audit plans and programmes for the yearend audit of your new client, SOA-Rich Berhad. In a meeting with your audit manager, the following matters were discussed: Technological and System Failure at SOA-Rich Berhad A technological failure occurred at SOA-Rich Berhad last year. A new computer system which was designed to control SOARich's complicated operatioaal facility, broke down shortly after it was installed. This meant that the company was unable to carry out its operational processes normally for several days. The cause of the failure was later found to have been a system specication error made by Che Yan, the Operations director. She had miscalculated the capacity needed for the new system and had ordered a computer system which was unt for the purpose. This had cost a large amount of money to repair and upgrade the system to be able to cope with the actual demands placed upon it. Brief Junior Auditors on Computerised Audit To improve audit efciency, Tisa & Sham is considering to introduce the use of new Computer Assisted Audit Techniques (CAATs) for some audits. You have been asked to brief and update junior auditor about-the auditing in the Computerized Information System (CIS) environment and CAATS. REQUIRED: (a) Distinguish between \"auditing around the computer" and \"auditing through the computer". (3 Marks) (b) Explain TWO (2) factors which might influence an auditor when choosing between the two audit approaches in (a) above. (4 Marks) (0) Dene the term 'technological risk'. (2 Marks) (d) Describe THREE (3) problems which led to the technological failure at SOARich. (6 Marks) (e) Dene the following terms and give ONE (1) example for each. (i) Test data. (ii) Audit software. (4 Marks) (f) Explain the objective of each of the following application controls in a C18 environment: (i) Input controls. (ii) Processing controls (iii) Output controls. (6 Marks)