Chapter 7 - Auditing information technology-based processes. This chapter presents the following content: An introduction to auditing it processes, the various types of audits and auditors, information risk and it-enhanced internal control, authoritative literature used in auditing, management assertions used in the auditing process and the related audit objectives, | Chapter 7 Auditing Information Technology-Based Processes Chapter 7 An introduction to auditing IT processes The various types of audits and auditors Information risk and IT-enhanced internal control Authoritative literature used in auditing Management assertions used in the auditing process and the related audit objectives The phases of an IT audit The use of computers in audits Tests of controls Tests of transactions and tests of balances Audit completion/reporting Other audit considerations Ethical issues related to auditing Study Objectives 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) SO 1 An introduction to auditing IT processes Accounting services that improve the quality of information are called assurance services. An audit is the most common type of assurance service. Introduction to Auditing IT Processes SO 2 The various types of audits and auditors Main purpose of the audit is to assure users of financial information about the accuracy and completeness of the information. Three primary types of audits include compliance audits, operational audits, and financial statement audits. Types of Audits and Auditors SO 2 The various types of audits and auditors Audits are typically conducted by accountants. Certified public accountants (CPAs) Internal auditor IT auditors Government auditors Types of Audits and Auditors SO 2 The various types of audits and auditors Real World Ford Motor Co. Only auto manufacturer to not use government assistance in the 2008-2010 recession Focus on financial processes and controls Change to meet . | Chapter 7 Auditing Information Technology-Based Processes Chapter 7 An introduction to auditing IT processes The various types of audits and auditors Information risk and IT-enhanced internal control Authoritative literature used in auditing Management assertions used in the auditing process and the related audit objectives The phases of an IT audit The use of computers in audits Tests of controls Tests of transactions and tests of balances Audit completion/reporting Other audit considerations Ethical issues related to auditing Study Objectives 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness .
