This module identify how the use of an automated transaction processing system impacts the audit examination, provide examples of general controls and understand how these controls relate to transaction processing in an accounting information system, provide examples of automated application controls and understand how these controls relate to transaction processing in an accounting information system. | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Module H Auditing in a Computerized Environment "To err is human, but to really foul things up you need a computer.“ Paul Ehrlich, Technology commentator Mod H- Impact of Computerized Processing Issues introduced in a computerized environment Input errors Systematic vs. random processing errors Lack of an audit trail Inappropriate access to computer files and programs Reduced human involvement in processing transactions Consider controls over computerized processing in understanding, assessment, and testing phases of evaluation of internal control Mod H- Types of Computer Controls General Controls Relate to all applications of a computerized processing system (pervasive) Deficiencies will affect processing of various types of transactions Automated Application Controls Relate to specific business activities Directly address management assertions Mod H- Categories of General Controls Hardware controls Data not altered or modified as transmitted through system Program development controls Program acquisition and development properly authorized Programs tested and validated before being placed in use Mod H- Categories of General Controls (continued) Program change controls Program changes are properly authorized and conducted consistent with entity policies Programs have appropriate documentation Computer operations controls Relate to processing of transactions and backup and recovery of data Includes separation of duties of analysts, programmers, and operators Mod H- Categories of General Controls (continued) Access to programs and data controls Relate to restricting use of programs and data to authorized users Examples include passwords, automatic terminal logoff, and reviewing access rights and comparing to usage Mod H- Types of Automated Application Controls Input controls Processing controls Output controls Mod H- Input Controls Provide . | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Module H Auditing in a Computerized Environment "To err is human, but to really foul things up you need a computer.“ Paul Ehrlich, Technology commentator Mod H- Impact of Computerized Processing Issues introduced in a computerized environment Input errors Systematic vs. random processing errors Lack of an audit trail Inappropriate access to computer files and programs Reduced human involvement in processing transactions Consider controls over computerized processing in understanding, assessment, and testing phases of evaluation of internal control Mod H- Types of Computer Controls General Controls Relate to all applications of a computerized processing system (pervasive) Deficiencies will affect processing of various types of transactions Automated Application Controls Relate to specific business activities Directly address management assertions Mod H- Categories of General .
