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    Testing Application Control Activities: Auditing With - Module 6

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    Hazem El Sayed
    The document discusses testing application control activities. It notes that if general controls are operating effectively, reliance can be placed on application control activities. Input and output controls can be tested through observation, while processing controls can be tested in various ways, such as examining documentation of program changes. Computer assisted audit techniques like test data, controlled programs, and integrated test facilities allow auditors to evaluate how effectively a company's software processes data. Program analysis techniques use software to generate flowcharts that auditors can examine to evaluate client programs.

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    Testing Application Control Activities: Auditing With - Module 6

    Uploaded by

    Hazem El Sayed
    14 views1 page
    The document discusses testing application control activities. It notes that if general controls are operating effectively, reliance can be placed on application control activities. Input and output controls can be tested through observation, while processing controls can be tested in various ways, such as examining documentation of program changes. Computer assisted audit techniques like test data, controlled programs, and integrated test facilities allow auditors to evaluate how effectively a company's software processes data. Program analysis techniques use software to generate flowcharts that auditors can examine to evaluate client programs.

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    The document discusses testing application control activities. It notes that if general controls are operating effectively, reliance can be placed on application control activities. Input and output controls can be tested through observation, while processing controls can be tested in various ways, such as examining documentation of program changes. Computer assisted audit techniques like test data, controlled programs, and integrated test facilities allow auditors to evaluate how effectively a company's software processes data. Program analysis techniques use software to generate flowcharts that auditors can examine to evaluate client programs.

    Copyright:

    © All Rights Reserved
    Download as RTF, PDF, TXT or read online from Scribd
    Download as rtf, pdf, or txt
    14 views1 page

    Testing Application Control Activities: Auditing With - Module 6

    Uploaded by

    Hazem El Sayed
    The document discusses testing application control activities. It notes that if general controls are operating effectively, reliance can be placed on application control activities. Input and output controls can be tested through observation, while processing controls can be tested in various ways, such as examining documentation of program changes. Computer assisted audit techniques like test data, controlled programs, and integrated test facilities allow auditors to evaluate how effectively a company's software processes data. Program analysis techniques use software to generate flowcharts that auditors can examine to evaluate client programs.

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    © All Rights Reserved
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    1

    Testing Application Control Activities

    If .ge~eral controls ~~~ in place and operating effectively, reliance may also be placed on ap-
    pll~atlon control.actlvltles. The auditor can test input and output controls largely through obser-
    vation. Processinq controls, on the other hand, may be tested in a variety of ways.
    In t~sting.controls over the development of, and changes to, programs and systems design the
    auditor rniqht '
     Make inquiries of personnel
    Review minutes of meetings of computer staff and users
    Insp.ect documentation of testing performed before programs were put into use
    ::vlew documentation of program changes and compare them to management approv-

    Inspect manuals being used by operators and other users

    Focus on
    Auditing with - Module 6 264

    Testing Application Control Activities (continued)


    Computer assisted audit techniques, or CAATs, are used to test the operation of software.
    These include test data, controlled programs, integrated test facilities, program analysis, tagging
    and tracing, and generalized audit software programs.

    Test data includes one example of each type of exception and is run through the company's
    computer programs. The auditor compares results to expected results to evaluate the process-
    ing of the data and handling of exceptions.

    Controlled programs are copies of the client's programs that are under the control of the audi-
    tor. The auditor processes the client's data using these programs and compares the results to
    those of the client to evaluate the client's processing of the data.

    Using an integrated test facility, fictitious and real transactions are processed simultaneously
    using the client's system. The auditor can review the client's processing of the data to evaluate
    the effectiveness of the programs.

    Program analysis techniques involve the use of software that will allow the computer to gen-
    erate flowcharts of other programs. The auditor can examine the flowcharts to evaluate the ef-
    fectiveness of the client's programs.

    Focus on
    Auditing with Technology - Module 6 265

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