Auditing through the computer
A) Is a required approach under generally accepted auditing standards.
B) Requires the audit team to evaluate the operating effectiveness of important computer controls.
C) Is normally utilized when the client has not implemented significant computer controls.
D) Focuses on reconciling the input data to the results generated by the client's computerized processing system.

Question

Quizplus · Accepted Answer

Auditing through the computer involves using computerized tools and techniques to gather and analyze audit evidence. This approach is not required under generally accepted auditing standards, but it can be very effective in improving audit efficiency and effectiveness. To conduct an audit through the computer, the audit team must evaluate the operating effectiveness of important computer controls, such as access controls, backup and recovery procedures, and segregation of duties. This approach is particularly useful when the client has implemented significant computer controls that can be leveraged to improve audit quality. Auditing through the computer also focuses on reconciling the output data produced by the client's computerized processing system to the input data that was initially provided. This helps ensure that the processing is accurate and reliable.

Auditing Through the Computer