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Unit 6: Computers - Coggle Diagram

- - - - Review & follow up of exception reports
      - Recons& balancing
      - Physical checking for accuracy by users
      - Scrutiny by users of processed info for accuracy
      - Edit checks
      - Checking postings by users
      - Controls over hardware
      - Supervision & review
      - Operator manuals and instructions
    - - Sequential testing by the computer:
      - Processing logs:
      - Reconciliations of balances and accounts:
      - Breakpoint re-runs:
      - Control totals:
      - Adequate back up procedures:
    - - Manual intervention:
      - Matching by the computer
      - overrides
      - Manual logs
      - Files labels and version numbers:
      - supervision and review
      - Librarian function:
      - Segregation of duties:
      - Access controls
  - - - Edit checks
      - Staff training
      - Review by users or senior staff
      - control over documents
      - Matching by the computer:
      - control over screens
    - - Sequential testing by the computer:
      - Review of output reports by users
      - Matching by the computer
      - Examining of processing logs:
      - Stationary controls:
      - Control totals
    - - Authorization
      - Overrides of system generated information:
      - Segregation of Duties
      - Changes in Data
      - Access controls
  - - - Recon
      - Review of outputs
    - - Recon
      - Sequence checks:
      - Reports
      - Reviews of reports
    - - Distribution register:
      - Output logs:
      - Distribution schedule:
      - Online output:
      - Distribution list:
      - Terminal located in secure area
      - Distribution should be controlled:
      - Access controls
  - - - • Authorisation of changes in writing by senior management on a master file amendment
      - form;
      - • All the master file amendments forms should be captured in a register;
      - • Checking the changes of the master file to the logs of changes; and
      - • Follow up of unauthorised changes
    - - Sequential numbered audit trail of master file changes; and
      - Recon of master file amendment forms with changes register
    - - • Encryption
      - • Library function
      - • Record counts
      - • Reconciliations
      - • Regular senior review of master fil
- - - - This type of CAAT therefore reduces the risk of corrupting the client’s information
      - The major disadvantage of this technique is that fictitious transactions may be muddled in with the client’s data if not correctly coded or r if the dummy unit is not separated out before reports are sent to users.
    - - This type of CAAT involves running the client’s transaction data and master file information through a “trusted” system set up by the auditor, as well as through the client’s normal system.
      - The results of the two processing runs are then compared and any discrepancies are followed up.
      - These results can provide evidence relating to controls
    - - o Controls, such as input validation, online password and data access controls; and
      - o The processing of data by the computer system.
    - - the auditor arranges to have an audit module inserted into the client’s application programme
      - The module is designed to either identify transactions which might be of particular interest to the auditor, or to re-perform certain validation controls and report thereon, while the client is actually running the normal application programmes
  - - - Utility programmes
        can be used to manipulate and analyse data and test whether programmes function correctly
      - Report writing programmes
        enable users, including the auditor, to design and extract various
        reports, which may be particularly useful in performing substantive tests.
    - - 2.Perform investigations and analyses:
      - select samples
      - Re-perform calculations
      - 4.Extract summaries:
      - Perform comparisons:
    - - These are programmes that are used to extract/analyse/reformat data extracted from client
        systems
- - - - Ensure there is supervision over system design;
      - Ensure that appropriate control-related programmed procedures are built in;
      - Ensure system interacts properly with existing systems and system software;
      - Ensure the system complies with predetermined standards;
      - It should always be done on a program library and not live data.
    - - System testing:
      - 3. Live testing:
        a) Parallel testing
        b)Pilot running
      - Program testing:
    - - Prototype systems:
      - Traditional method:
    - - Update system documentation:
      - Testing
      - Backup of new system
      - Post-implementation review.
      - Control over conversion of data by data control group:
      - Planning and preparation:
    - - A project team will do the following:
        
        The day to day management of the project;
        
        Ensure the project is developed in stages;
        
        Prepare timetables for each stage of the development
      - There should be involvement from the following departments during development:
        
        User department:
        
        Data processing department:
        
        Quality control department:
  - - - i. Package must meet user requirements:
      - ii. Prepare statement of requirements;
      - iii. Measure available packages against requirements.
      - iv. Keep in mind:
      - v. Minimum changes should be made to package;
      - vi. If modifications is necessary, use normal rules w.r.t. system development;
      - vii. Possibility of future amendments (e.g. tax updates);
      - viii. Quality of maintenance service from supplier.
    - - i. Less implementation time (immediate implementation);
      - ii. Lower cost and cost is predetermined;
      - iii. Tested thoroughly – thus very reliable.
    - - i. Testing:
      - ii. Independent testing;
      - iii. Review of experiences of other users.
      - iv. Implementation:
    - - i. Dependent on vendors for maintenance;
      - ii. Too general /inflexible to cater for needs;
      - iii. Change maintenance difficult/impossible;
      - iv. Written overseas (Vat and Tax differs).
    - - i. Discussions with other users;
      - ii. Observing operation of package;
      - iii. Questioning other users of package:
      - iv. Facilities offered by program;
      - v. Freedom from program errors;
      - vi. Speed and efficiency;
      - vii. Ease of use;
      - viii. Quality of support