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IMPACT OF IT ON AUDIT PROCESS - Coggle Diagram
IMPACT OF IT ON AUDIT PROCESS
What is CIS Environment
exists when a computer of any type of size involve in processing by the entity of financial information
exist when the computer is operated by the entity of third party
Characteristics of CIS Environment
potential for errors and irregularities
initiation or execution of transactions
uniform processing
dependence of other controls over computer processing
lack of segregation of duties
potential for increased management supervision
lack of transaction trails
potential for the use of computer - Assisted Audit Technique
Example of CIS Environment
electronic funds transfer
invoices
contracts or relevant information that available in electronic forms
Impact of CIS Environment
auditor evaluation of inherent risk and control risk
auditor's design and performance of test of control and substantive procedures
procedures followed by auditor
Effects of CIS Environment
Potential benefits
enhancement of the timeliness, availability and accuracy information
enhancement of the ability to monitor the company's performance
reduction in the risk that control will be circumvented
enhancement of the ability to achieve effective segregation of duties
Potential risks
unauthorized changes to system or programmes
potential loss of data
unauthorized changes to data in master file
inappropriate manual intervention