...2012 Yasin Dadabhoy Introduction Computers are an essential tool for a lot of jobs. Auditors rely on computer technology to execute many job roles, use the benefits of software tools, and use methods to become more well-organized and successful. Computer-assisted audit tools, known as CAATs, and audit productivity tools are two types of software tools. CAATs assist the auditors with the evaluation of application controls. CAATs also choose and examine data for significant audit evaluations. Audit productivity tools assist auditors in reducing the number of valuable time spent on administrative duties by computerizing the audit role and incorporating information assembled from the audit process. This brief will describe how CAAT will be used to validate data and system integrity within the system, explain the functions of audit productivity software, and explain how audit productivity software might be used in the systems designed. Validating Data and System Integrity CAAT consists of the usage of software, applications, extracted and analyzed data, trends within data, identifying with the expectations and detention of potential fraud within data (Gray, et. al., 1989, Pag.109). CAAT makes available information that allows certain aspects to simply be acquired. With the utilization of CAAT, the audit records and practices can be improved with excellence and swiftness. The information systems auditor will control and monitor CAAT. The information systems auditor should execute...
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...and dirty, and some rather casual. We discuss evaluation first, in the generic sense, and then discuss a very specific and often formal type of evaluation known as the project audit. Following this we discuss termination of the project. 8.1 EVALUATION The term “evaluate” means to set the value of or appraise. A project evaluation appraises the progress and performance relative to the project’s initial or revised plan. The evaluation also appraises the project against the goals and objectives set for it during the selection process—amended, of course, by any changes in the goals and objectives made during the project’s life. In addition, evaluations are sometimes made relative to other similar projects. The project evaluation, however, should not be limited simply to an afterthe-fact analysis. Rather, it is useful to conduct an evaluation at a number of crucial points during the project life cycle. Because the primary purpose of a project evaluation is to give feedback to senior management for decision and control purposes, it is important for the evaluation to have credibility in the eyes of both senior management and the project team. The control purpose of evaluation is meant to improve the process of carrying out projects. The decision purpose is intended to improve the selection process. Thus an evaluation should be as carefully planned and executed as the project itself. The use of post project evaluation to help the organization improve its project-management...
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...Audit Proposal Audits are a critical and an important part of every company whether performed internally or externally. With the expansion of Kudler Fine Foods and update of their information system, the company must ensure system processes are functioning properly. Conducting an audit will identify any problems with the newly implemented computer system. There are several types of audits that can be performed for each process. The most important factor is choosing the appropriate type of audit that best fits the process. Most audits are conducted similarly and should always be completed in an efficient and effective manner. Furthermore, there are events that could prevent the reliance of an audit through the computer in which management must be made aware of and evaluate accordingly. Types of Audits There are various types of audits that will give credence to the accounting records, accounting policies, and financial statements of a business organization. For example, an internal audit can be conducted of the accounting department to examine company policies and procedures as well as development and evaluations of internal controls. Internal audits will provide management with insight and recommendations based on analysis and assessment of data and business processes. An external audit will assess the computer-based accounting system and provide judgment on the accuracy and fairness of financial statements. “The fairness evaluation is conducted in the context of generally...
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... | | |ACC/542 Version 2 | | |Accounting Information Systems | Copyright © 2009, 2007 by University of Phoenix. All rights reserved. Course Description In this course, students examine the fundamentals of accounting systems design. Topics include business information systems, business processes and data flows, database concepts and tools, internal control and risks, auditing the information system, and using the information system to perform audit functions. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Bagranoff, N. A., Simkin, M. G., & Strand Norman, C. (2008). Core concepts of accounting...
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...Ashley Richardson 11/15/2013 Western Governors University AUO1 – Auditing and Information Systems Additional Study Questions/ Study Guide 1. Accounting Information Systems Competency 302.1.1: Nature and Purpose The student understands the nature and purpose of information systems. * What is the difference between transaction processing systems, management information systems, and decision support systems? 2. Transaction processing systems - document financial activities 3. Management information systems - used to collect qualitative as well as quantitative information for decision making within organizations 4. Decision support systems - help the developers of an AIS identify what information they need for their planning, decision making, and control functions * How is a flowchart used? 5. A document flowchart traces the physical flow of documents through an organization—that is, the flow of documents from the departments, groups, or individuals who first created them to their final destinations. * How is the accounting information system documented? 6. An accounting information system is a collection of data and processing procedures that creates needed information for its users. An information system's components: Data or information is input, processed, and output as information for planning, decision-making, and control purposes. 1. Data flow diagrams provide both a physical and a logical view of a system...
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...Contents: Question 1A------------------------- Page 3 Question 1B----------------------- Page 5 What is Quality Audit? The principles of Quality Audit, in the sense we mean it here, are based on the style of quality standards used in several formal national and international standards such as the ISO-900x international quality standards. These standards do not in themselves create quality. The logic is as follows. Every organization should define comprehensive procedures by which their products or services can be delivered consistently to the desired level of quality. As was discussed in the section on Quality Management, maximum quality is rarely the desired objective since it can cost too much and take too long. The average product or service provides a sensible compromise between quality and cost. There is also a legitimate market for products that are low cost and low quality. Standards authorities do not seek to make that business judgment and enforce it upon businesses, except where certain minimum standards must be met (eg all cars must have seat belts that meet minimum safety standards, but there is no attempt to define how elegant or comfortable they are). The principle is that each organization should create thorough, controlled procedures for each of its processes. Those procedures should deliver the quality that is sought. The Quality Audit, therefore, only needs to ensure that procedures have been defined, controlled, communicated and used. Processes will...
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...Havel Abstract Kudler seeks to improve their audit process by allowing changes implemented to their audit documentation process. It is important to implement changes reflected by computer assisted auditing techniques (CAATs). These changes will offer a variety of benefits to Kudler as well as the auditor. The use of CAATs will allow auditors to use the software for improved analysis and application of security. Auditors will also be able to extract and analyze data to foresee any potential threats, trends, fraud issues, or foresee expectations. The use of validation tools will also allow Kudler greater success in their audit. Using test decks, integrated test facilities (ITF), and parallel simulations will allow auditors to verify and test data quickly and effectively. The functions of this software will improve greatly not only the speed of the audit, but also accuracy as well. Auditors will be able to analyze a vast amount of data and verify balances, again information, and verify any duplicate information. Kudler should choose a custom audit software suitable to their organizational needs. More specifically, they should focus on accuracy, reliability, and compliance as their key goals for the audit. The distinct audit software should be in connection with their AIS and will offer numerous benefits. Kudler and the auditor will be able to manage current or past transactions, history, reporting, and foresee audit trails to analyze any issues or errors. System...
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...AUO1 – Auditing and Information Systems Additional Study Questions Accounting Information Systems Competency 302.1.1: Nature and Purpose The student understands the nature and purpose of information systems. * What is the difference between transaction processing systems, management information systems, and decision support systems? Transaction processing systems - document financial activities Management information systems - used to collect qualitative as well as quantitative information for decision making within organizations Decision support systems - help the developers of an AIS identify what information they need for their planning, decision making, and control functions * How is a flowchart used? A document flowchart traces the physical flow of documents through an organization—that is, the flow of documents from the departments, groups, or individuals who first created them to their final destinations. * How is the accounting information system documented? An accounting information system is a collection of data and processing procedures that creates needed information for its users. An information system's components: Data or information is input, processed, and output as information for planning, decision-making, and control purposes. Nine reasons to document an AIS are (1) to explain how the system works, (2) to train others, (3) to help developers design new systems, (4) to control system development and maintenance costs, (5) to standardize...
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...Club IT Final Project Final Project: Club IT, Part 3 Tim Deddeh XBIS/219 John Brooks Final Project: Club IT, Part 3 After an extensive amount of research, I have developed an assessment for Ruben and Lisa on their Club IT. They are looking to see improvement capabilities with an option to someday soon expand to a second nightclub. Being at this internship for a few months I was able to see firsthand what was working and what was lacking. My assessment includes a detailed technology plan of what they will need to reach their goals. The club belongs to Lisa Tejada and Ruben Keys. Recently completing the remodel of this facility, they have become very satisfied and have been trying to be the new niche in downtown nightlife one may need in order to relax, eat, and even have a little fun on the dance floor with their friends. This facility offers a square footage of 6,000 feet which is enough room to have fun with a positive energy, a variety of music being played every night. Live band perform every Friday and Saturday and every Monday through Thursday the DJ’s come in to show off their skills. Club IT’s objective is to provide a safe and relaxing environment in which individuals can gather and interact. The target population for our clientele will be individuals’ ages 21 to 30. There will be alcoholic beverages served, so 21 will be the cutoff age for legal reasons. Club IT caters to all ages, sexes, and any type of group that wants to have a great time with food, dancing...
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...States Government Accountability Office GAO February 2009 GAO-09-232G FEDERAL INFORMATION SYSTEM CONTROLS AUDIT MANUAL (FISCAM) This is a work of the U.S. government and is not subject to copyright protection in the United States. The published product may be reproduced and distributed in its entirety without further permission from GAO. However, because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. United States Government Accountability Office Washington, DC 20548 February 2009 TO AUDIT OFFICIALS, CIOS, AND OTHERS INTERESTED IN FEDERAL AND OTHER GOVERNMENTAL INFORMATION SYSTEM CONTROLS AUDITING AND REPORTING This letter transmits the revised Government Accountability Office (GAO) Federal Information System Controls Audit Manual (FISCAM). The FISCAM presents a methodology for performing information system (IS) control 1 audits of federal and other governmental entities in accordance with professional standards, and was originally issued in January 1999. We have updated the FISCAM for significant changes affecting IS audits. This revised FISCAM reflects consideration of public comments received from professional accounting and auditing organizations, independent public accounting firms, state and local audit organizations, and interested individuals on the FISCAM Exposure Draft issued on July 31, 2008 (GAO-08-1029G). GAO...
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...internal control Qver Financial Reporting CASES INCLUDED iN THIS SECTiON 1. Simply Steam, Co. 155 Evaluation of Internal Control Environment 2. Easy Clean, Co. 155 Evaluation of Internal Control Environment 3. Red Bluff Inn & Café 165 Establishing Effective Internal Control in a Small Business 4. St. James Clothiers 169 Evaluation of Manual and IT-Based Sales Accounting System Risks 5. Collins Harp Enterprises 177 Recommending IT Systems Development Controls 6. Sarbox Scooter, Inc. 185 Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 7. Société Générale 195 How a Low-Risk Trading Area Caused a $7.2 Billion Loss case5.!-2 Easy Clean/Simply Steam, Co. Evaluation of Internal Control Environment Mark S. Beasley • Frank A. Buckless • Steven M. Glover • Douglas F. Prawitt INSTRUCTIONAL OBJECTIVES 1] To reinforce aspects relevant to the internal control environment. 2] To illustrate the degree of judgment involved in making internal control environment evaluations. 3] To provide students experience in making subjective evaluative judgments. 4] To provide a forum to discuss inquiry techniques as well as inquiry as a form of audit evidence. 5] To provide students direct experience with, and discovery of, issues surrounding the control environment, making inquiries, and the framing (e.g., positive or negative) of information provided by management. 6] To illustrate...
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...Information Systems Audit Information Systems Audit An information system audit examines and evaluates an organization’s information systems, practices, and operations. The audit is designed to confirm that the information system is safeguarding the organization’s assets, ensuring data integrity, and performing in an efficient way so as to meet the organization’s goals. Information system audit plans seek to evaluate the robustness of the organization’s information system. Is the system available at all times when needed by the organization? What are the security mechanisms in place to ensure confidentiality and security of data? Is the information provided by the systems accurate? Audits of information systems may be initiated to address these individual specific issues within the overall IS environment. Information Systems Audit Program The elements of an information systems audit will address the effectiveness of controls in the following general areas: * Physical and environment review that includes physical property security, power supply, air conditioning, etc. * System administration review encompassing operating systems, databases, and system administration policies and procedures. * Application software review which is an encompassing examination of the applications being used by the organization as well as the access controls, authorizations, process flows, error and exception handling, and similar activities that effect software applications including...
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... In order to save space in this template we only developed the WBS examples down to the third level. In your project you will want to develop them down to a much more detailed level using the 8 to 80 rule (where the WBS is broken down to where a work package contains between 8 and 80 hours of work to complete). The Work Breakdown Structure presented here represents all the work required to complete this project. OUTLINE VIEW The outline view presents an easy to view and understand layout for the WBS. It is also a good layout to use when developing the WBS because you can easily make changes, especially since the Microsoft Word auto numbering feature updates the WBS Code automatically. Widget Management System Initiation Evaluation & Recommendations Develop Project Charter Deliverable: Submit Project Charter Project Sponsor Reviews Project Charter Project Charter Signed/Approved Planning Create...
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...Question No. 2 a. Out of the 22 records 8 people or 17 records yielded result where 1 person is issued 1 software and 1 hardware with the exception of Mok,C where he was issued 2 software and 1 HW 1 person (2 records) show 2 software issued to him; 1 record (1 person) shows only a software was issued to him; and lastly there is 1double entry for Lower, P – same invoice # and same type (software). b. c. Conduct a software and hardware inventory Collect software usage data and be able to tru-up savings in un used SW. Gather software licensing data an establish and communicate software policies Question No. 3. a. Out of the 18 records, 13 pertains to salaries deposited to same account but different employee numbers; 2 records show double deposit (2x deposited to same employee b. Question No. 4 MEMORANDUM Date : November 13, 2013 To : From : Fraser, Leung, and Gill Re : Audit of Production As requested at our meeting last Wednesday, I have identified key areas to be reviewed, general audit criteria, and a general audit approach for this audit. Once you have reviewed these points, I will prepare a formal audit program. Key areas to be reviewed In reviewing the production activities, the audit should assess the adequacy of systems and practices used for the following activities: • Strategic positioning and evaluation Assessing overall production strategy on the importance of production in terms of total product costs and...
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...D determined that industry specific software is useful in comparison to customized software. Four main modules such as payroll, account payable, accounts receivable, and inventory were developed as well as enhancement of each flowchart based on the appropriate system. Team D examined the database completeness at Kudler’s intranet and developed a pivot table; therefore, making the decision-making process easy. External and internal risks were analyzed and internal control points were developed by incorporating both risks and controls into a flowchart. Team D also showed why findings and recommendations are more useful to the company in comparison to SAS70 and SAS94 audits. The team identified events that will lessen the dependence on auditing through computer and showed a brief description how the audit should be conducted. System Integrity and Validation Kudler Finer Foods has looked for recommendations regarding the company, to include computer information system, automated process of an accounting information system, data table analysis, internal control and risk evaluation, and auditing procedures. The most recent visit was necessary because of apprehension of the company’s system integrity and validation. The accounting firm will inform Kudler on the selected auditing techniques the accounting firm will use to validate data and system integrity. The firm will provide details information on functions of the audit productivity software and...
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