If ABC Co. utilizes an outside company to process their payroll then the auditor may need to coordinate audit procedures with the auditors of the payroll company.
True
False
True
Batch processing means that all transactions of a given day are processed together.
True
False
False
A parity check ensures that the coding of data in the computer does not change when it is moved from one external storage location to another.
True
False
False
The "garbage in, garbage out" philosophy follows the theory that it is more cost effective to prevent misstatements than to detect and correct them once in the system.
True
False
True
Master file changes are an example of an output control procedure.
True
False
True
application description:
(in computer system documentation) system flowcharts, description of all inputs and outputs, record formats, lists of computer codes and control features.
auditing around the computer:
auditors' attempt to isolate the computer and to find audit assurance by vouching data from output to source documents and by tracing from source documents to output.
auditing through the computer:
auditors' actual evaluation of the hardware and software to determine the reliability of operations that cannot be viewed by the human eye.
auditing with the computer:
audit techniques such as the use of the client's computer hardware and software to process real or simulated transactions or the use of specialized audit software to perform other audit tasks.
auditing without the computer:
using visible evidence such as the input source data, the machine-produced error listings, the visible control points and the detailed printed output.
backup:
a retention system for files, programs and documentation so that master files can be reconstructed in case of accidental loss and processing can continue at another site if the computer centre is lost to fire or flood.
batch processing:
all records to be processed are collected in groups (batches) of like transactions before computer processing. (also serial or sequential processing)
echo check:
a magnetic read after each magnetic write, "echoing" back to the sending location and comparing results.
event driven:
computer data processing system that is started with each transaction event; individual transactions trigger the processing activity and all relevant files are updated. (also transaction driven)
generalized audit software (GAS):
set of software functions that may be utilized to read, compute and operate on machine-readable records.
parity check:
electronic function that ensures the coding of data internal to the computer does not change when it is moved from one internal storage location to another.
program driven:
computer data processing system that is started when a specific program is loaded into the computer to process all transactions that fit that program and its related files; characterized by batch processing.
systems development and documentation standards manual:
computer documentation containing standards that ensure (1) proper user involvement in the systems design and modification process, (2) review of the specifications of the system, (3) approval by user management and data processing management, and (4) controls and auditability.
