AUD 3 Audit and Information Technologies

 Maintains database
 Restricts access
 Responsible for IT internal control

 Recommends changes or upgrades
 Liaison between IT and users

o Responsible for disc storage
o Holds system documentation

o Uses computer speed to quickly sort data and
files, which leads to a more efficient audit
o Compatible with different client IT systems
o Extracts evidence from client databases
o Tests data without auditor needing to spend time
learning the IT system in detail
o Client-tailored or commercially produced

o Relational database
 Group of related spreadsheets
 Retrieves information through Queries

o Auditor processes data with client’s computer
o Fake transactions are used to test program control
procedures
o Each control needs to only be tested once
o Problem
 Fake data could combine with real data

o Client data is processed using Generalized Audit
Software (GAS)
o Sample size can be expanded without significantly
increasing the audit cost
o GAS output compared to client output

1. Independent of client's program and personnel
2. Less computer expertise is needing compared to writing original programs
3. It can run on a variety of systems

1. May only process only sequential files
2. Modifications may be necessary for specific audit
3. Audit software cannot examine items not in machine-readable from
4. It has limited application in an online, real time system

Auditor creates dummy record within client's actual system
Advantage - Actual program in operations
Disadvantage - Coordination and purge dummy transaction

Integral part of application system that is designed to identify & report actual transactions & other info that meet criteria having significance
Advantage - Permits continuous monitoring of online; realtime
Disadvantage - Audit hooks must be programmed