THE IMPACT OFINFORMATION TECHNOLOGY ON THE AUDIT PROCESS JUST BECAUSE THE COMPUTER DID THE WORK DOESN’ T MEAN I? S RIGHT Arens, Loebbecke; Auditing, @2000 Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. THE IMPACT OF INFORMATION TECHNOLOGY ON THE AUDIT PROCESS JUST BECAUSE THE COMPUTER DID THE WORK DOESN’T MEAN IT’S RIGHT 11
How Information Technologies Enhance Internal control Computer controls replace manual controls Higher-quality information is available nS, Loebbecke; Auditing, @2000 Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. How Information Technologies Enhance Internal Control Computer controls replace manual controls Higher-quality information is available
Assessing Risks of 加m?n7 ethnology Visibility of audit trail Reduced human involvement nS, Loebbecke; Auditing, @2000 Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. • Visibility of audit trail • Reduced human involvement
Systematic versus random errors Reduced segregation of duties Lack of traditional authorization · Unauthorized access Need for IT experience · Loss of data Arens, Loebbecke; Auditing, @2000 Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. • Systematic versus random errors • Unauthorized access • Loss of data • Reduced segregation of duties • Lack of traditional authorization • Need for IT experience
General controls Application Controls nS, Loebbecke; Auditing, @2000 Prentice Hall. Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. General Controls Application Controls