Auditing in a computerised system – Questions and Answers

Subject Title: Auditing and Assurance Revision Kit

Topic: Auditing in a computerised system

QUESTION 1
April 2022 Question Two C
Your organisation is in the process of computerising the internal audit function. The management has proposed installation of a Generalised Audit Software (GAS) to replace the manual procedures.

Required:
Evaluate five functionalities that are supported by a Generalised Audit Software.
(5 marks)
QUESTION 2
January 2022 Question Three A B and C
When auditing a computer accounting system, the independent auditor should understand how the use of computers affects the various characteristics of internal control. The independent auditor should be aware of those control procedures that are commonly referred to as “general” controls and those that are commonly referred to as “application” controls. General controls relate to all computer activities and application controls relate to specific accounting tasks.

Required:
(a) Describe three general controls that should exist in computer-based accounting systems. (6 marks)
(b) Explain four potential problems of using audit software indicating how each may be resolved. (4 marks)
(c) Explain the concept of “auditing around the computer” and why it increases audit risk.
(2 marks)
QUESTION 3
December 2021 Question One B
Examine four matters which an audit practice might consider when deciding whether to use computer audit software. (4 marks)

QUESTION 4
December 2021 Pilot Papers Question One C
State four general controls that should exist to prevent unauthorised access to a company’s computer system from the remote terminals. (8 marks)

QUESTION 5
November 2020 Question Three C
Your audit firm is currently engaged in the audit of Zed Ltd. for the financial year ending 30 November 2020. You are considering whether to perform certain tests manually or with the assistance of computer assisted audit techniques (CAATS).

Required:
Discuss three factors that could influence your decision on whether to perform the tests manually or with CAATs. (6 marks)

QUESTION 6
November 2019 Question Three B
In relation to auditing in a computerized environment
i) Explain the term “test data” (2 marks)
ii) Analyze two uses of test data when auditing a computerized environment (2 marks)

QUESTION 7
May 2018 Question Two A
You are considering deploying an audit software to undertake substantive testing of data files in the sales and inventory system.

Required:
Discuss five challenges you might encounter while using the audit software. (10 marks)\

QUESTION 8
November 2017 Question Three A
Explain six benefits an auditor might derive from using computerised audit software.
(6 marks)
QUESTION 9
November 2017 Question Three C
International Standard on Auditing (ISA) 620 “Using the work of an expert” contains guidance to an auditor on using the work of an expert to provide knowledge relevant to the audit which the audit firm does not possess.

Evaluate four procedures that an audit firm might apply before relying on such an expert.
(8 marks)
QUESTION 10
November 2016 Question Three B
Discuss five input validity checks you would expect to find in a computerised financial system. (10 marks)

QUESTION 11
May 2016 Question Four A
Describe the following Computer Assisted Audit Techniques (CAATs):
(i) Embedded audit facilities. (2 marks)
(ii) Integrated test facilities. (2 marks)

QUESTION 12
May 2016 Question Four B
List four audit procedures that could be carried out using computer assisted audit techniques. (4 marks)

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