Advantages and disadvantages of auditing through the computer

1. What is auditing through the computer?
2. What are the effects of computer on auditing?
3. What are the disadvantages of computerized system?
4. What is auditing explain advantages of auditing?
5. Which is not advantage of audit?
6. What do you mean by auditing discuss its advantages?
7. When should you audit a computer?
8. Can audit be done by computer?
9. What is the need of control and audit of computer?
10. What are the difference between manual and computerized auditing?
11. Does computerization of data processing affect the objective of financial statement audit?

What is auditing through the computer?

Auditing through the computer describes the various steps taken by auditors to evaluate client's software and hardware to determine the reliability of operations that is hard for human eyes to view and also test the operating effectiveness of related computer controls, e.g., access control.

What are the effects of computer on auditing?

In general, the benefits of using computer audit techniques are as follows: it is possible to improve the audit quality and time. auditors access to the knowledge of modern technologies. automated controls can eliminate repetitive operations of audit process.

What are the disadvantages of computerized system?

Disadvantage: System Crash

One of the biggest problems with any computerized system is the potential for a system crash. A corrupt hard drive, power outages and other technical issues can result in the loss of needed data. At the least, businesses are interrupted when they are unable to access data they need.

What is auditing explain advantages of auditing?

An audit provides independent verification that the financial statements are a true and fair representation of the entity's current situation. This provides invaluable credibility and confidence to your organisation's customers/clients, stakeholders, investors or lenders and even potential buyers.

Which is not advantage of audit?

(I) It provides satisfaction for owner. (II) It detects errors and frauds. (III) It helps in getting loans.

What do you mean by auditing discuss its advantages?

Auditing is the process of inspecting and scrutinizing the books of accounts of an entity to authenticate its accuracy and reliability. ... Auditing is very advantageous as it offers assurance to all the stakeholders. Auditing helps prevent fraud and errors and minimize the risks of fraud in the books of accounts.

When should you audit a computer?

Audit around the computer approach is used in situations when auditor is of the opinion that computer system is reliable and often comparison of inputs i.e. source documents to outputs i.e. financial reports is done which in auditor's judgement is enough.

Can audit be done by computer?

Computer Assisted Audit Techniques (CAATs)

The nature of computer-based accounting systems is such that auditors may use the audit client company's computer, or their own, as an audit tool, to assist them in their audit procedures.

What is the need of control and audit of computer?

However, they need to ensure that their IT systems are reliable, secure and not vulnerable to computer attacks. 6. IT audit is important because it gives assurance that the IT systems are adequately protected, provide reliable information to users and properly managed to achieve their intended benefits.

What are the difference between manual and computerized auditing?

Manual Accounting refers to the accounting method in which physical registers for journal and ledger, vouchers and account books are used to keep a record of the financial transactions. ... Conversely, in computerized accounting, the transactions are recorded in the form of data, in the customised database.

Does computerization of data processing affect the objective of financial statement audit?

12 The auditor's specific audit objectives do not change whether ac- counting data is processed manually or by computer. However, the methods of applying audit procedures to gather evidence may be influ- enced by the method of data processing.