Importance of auditing in a computerized environment

1. What is the importance of auditing in a computerized environment?
2. What is the purpose of audit applications on computer systems?
3. What is computerized auditing?
4. What is auditing in IT environment?
5. What is auditing in EDP environment?
6. What are the advantages of Computerised system?
7. What is one benefit of using Computerised systems to maintain financial records?
8. What is the objective of auditing?
9. What is the purpose and benefit of doing it audit?
10. What are the benefits of auditing in EDP environment?
11. What are the auditing problems in EDP environment?

What is the importance of auditing in a computerized environment?

Audit test data is used to test the existence and effectiveness of controls built into an application program used by an audit client. As such, dummy transactions are processed through the client's computerised system.

What is the purpose of audit applications on computer systems?

In an Information Systems (IS) environment, an audit is an examination of information systems, their inputs, outputs, and processing. The primary functions of an IT audit are to evaluate the systems that are in place to guard an organization's information.

What is computerized auditing?

Computer auditing is a systematic and logical process that follows a risk based approach to determine whether the information systems of an entity, including its detailed information technology processes, controls and activities, will achieve its IT objectives and will thereby ultimately enable the organisation to ...

What is auditing in IT environment?

An IT audit is the examination and evaluation of an organization's information technology infrastructure, policies and operations. ... Evaluate the systems and processes in place that secure company data. Determine risks to a company's information assets, and help identify methods to minimize those risks.

What is auditing in EDP environment?

An EDP audit is a check and balance to this dynamic system. An EDP audit could discover any number of tasks that are being duplicated by different employees or departments. This process could help reveal opportunities for consolidation on a large or small scale.

What are the advantages of Computerised system?

Advantages of computerized information systems are:-

Data standardization and accuracy. Improved analytical capabilities. Analyses not manually practical, can be easily done by a computer Graphs and Charts also available. Cost savings by increasing employee productivity, decreasing manpower etc.

What is one benefit of using Computerised systems to maintain financial records?

The advantages of a computerized system include faster and more efficient record-keeping, access to real-time financial data, automated invoicing and cost savings. For example, most programs used in accounting can automatically issue invoices, receipts and credit notes.

What is the objective of auditing?

Objectives of Auditing

Main Objective: The main objective of the auditing is to find reliability of financial position and profit and loss statements. The objective is to ensure that the accounts reveal a true and fair view of the business and its transactions.

What is the purpose and benefit of doing it audit?

An IT auditing instills the confidentiality, availability, and integrity of the data. It ensures the safety of the sensitive data from any kinds of threat. An IT audit will not only access risks but also identify and evaluate controls. Ineffective or inadequately laid out controls can be restructured or reinforced.

What are the benefits of auditing in EDP environment?

Uses or Benefit of Computerized Audit

Greater accuracy : the chances of arithmetical errors and human errors are reduced to minimum. Greater economy: under the mechanized accounting system, work can be done with minimum staff, with minimum cost. Better records: records prepared by machines are neat and clean.

What are the auditing problems in EDP environment?

Auditors should test the integrity of computer data before assuming that the output is accurate. The mistakes made by auditors include the failure to realize the difference between user controls and EDP controls, and the failure to test computer controls because they seem to be unnecessary.