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Auditing in a computerised system

Unit: Audit & Assurance

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August 2024

 1 Questions
Question 2a
​​The future of auditing in an evolving landscape is being shaped by emerging technologies and changing business practices. Auditors are therefore expected to understand how technology can better their audit processes. 

 Required: 

 (i) Describe FOUR challenges associated with auditing a computerised information system.

(ii) Explain the concept of “auditing around the computer”. 

(iii) Discuss TWO reasons why auditing around the computer increases audit risk for the auditor.


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April 2024

 1 Questions
Question 2c
​​Explain FIVE challenges that an auditor could face when performing an audit in a computerised information systems environment.


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August 2023

 2 Questions
Question 5a
​​Kenneth Muli, an auditor at P and M Associates is in charge of auditing Mali Traders. Kenneth Muli is planning the audit with his team. The team is unsure on whether to use computer assisted audit techniques (CAATs) or manual techniques. 

 Required: 

 Advise Kenneth Muli on FIVE factors to consider when choosing between the two techniques in an audit engagement.


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Question 5b
​​Enumerate SEVEN benefits of data analytics in audit.


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April 2023

 1 Questions
Question 2a
​​Explain the following terms as used in computerised audit environment: 

(i) Cloud computing. 

(ii) Encryption. 

(iii) Embedded audit module.


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April 2022

 1 Questions
Question 2c
​​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


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January 2022

 2 Questions
Question 3
​​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.

(b). Explain four potential problems of using audit software indicating how each may be resolved.

(c). Explain the concept of "auditing around the computer" and why it increases audit risk.

(d). The directors of XYZ Enterprises Ltd. have prepared a cash flow forecast for submission to the bank. They have asked you as the auditor to provide a negative assurance report on this forecast.

Required:
(i) Discuss two differences between "positive" and "negative" assurance.

(ii) Explain two advantages to the directors of providing a negative assurance report on their cash flow forecast.


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Question 5b
​​With reference to the e-commerce environment, discuss three controls that an entity needs to put in place to safeguard the accuracy, completeness and integrity of financial information.


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December 2021

 1 Questions
Question 1b
​​Examine four matters which an audit practice might consider when deciding whether to use computer audit software.


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November 2020

 1 Questions
Question 3c
​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.


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November 2019

 1 Questions
Question 3b
​​In relation to auditing in a computerised environment: 

(i) Explain the term "test data".

(ii) Analyse two uses of test data when auditing a computerised environment.


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November 2018

 1 Questions
Question 5b
​​With respect to information technology (IT) audits, explain the following terms:

(i) Social media risk assessment.

(ii) Software licence review.

(iii) IT governance audit.

(iv) IT risk assessment audit.


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May 2018

 1 Questions
Question 2a
​​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.


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November 2017

 1 Questions
Question 3a
​​Explain six benefits an auditor might derive from using computerised audit software.


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November 2016

 1 Questions
Question 3b
​​Discuss five input validity checks you would expect to find in a computerised financial system.


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May 2016

 2 Questions
Question 4a
​​Describe the following Computer Assisted Audit Techniques (CAATs):

(i) Embedded audit facilities.

(ii) Integrated test facilities. 


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Question 4b
​​List four audit procedures that could be carried out using computer assisted audit techniques


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Pilot September 2015

 1 Questions
Question 4c
​​Knowledge of the business is crucial in determining the most effective and efficient audit strategy of an entity using the internet for electronic commerce. Any auditor needs to have an indepth understanding of the related risks and the measures to minimise them. 

Required: 
Discuss the impact of e-commerce on the audit process.


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