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COMPUTERISED AUDIT SYSTEM: ISSUES, PROBLEMS AND PROSPECTS


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COMPUTERISED AUDIT SYSTEM: ISSUES, PROBLEMS AND PROSPECTS

PROJECT TOPICS AND MATERIALS ON COMPUTERISED AUDIT SYSTEM: ISSUES, PROBLEMS AND PROSPECTS


Computerized Auditing System: A computer is an electronic device, which works faster than the ordinary human brain. Although a computer has no brain of its own to reason like a human being, it has in-built memories that enable it perform complex mathematical problems as fast as possible, faster than the human brain. The background of computing aids can be traced to China where merchants first made use of ABACUS, while the history of modern day computers is traced to French where Pascal in 1642 invented the First Machine for doing the four fundamental operations of arithmetic in money. This was improved upon by Hervrith in 1671 and recommended for use in the large volume of astronomical calculations required at that time. The first analoque computer was derived from Kelvin Tidal analysis for producing tides.

Since the first office computer LED Ilyans end co-electronic Office was introduced in 1953, machine have increased on speed, reliability and new used in wide range of application without any change in the fundamental principles. The introduction of computer has made accounting such as auditing easier and quicker to perform. The computer is capable of performing a months transaction of auditing work of an organization in a few hours thus reducing the job of the Auditor.

This auditor need to learn about computer programming or at least should be able to follow the transaction trail up to the paint where they are keyed into the computer in form of input since there is usually a Loss of Visible Evidence (LOVE) during operation. The Auditor should be able to relate the input to output. It is also advisable for an Auditor to take a course in computer programming in output data in course of his audit trail.

The fast developing of technology, paper transactions are fast disappearing, consequently, source documents are less available. The introduction and adoption of computer to the Auditor business has led to revolution in data processing methods. They have served as a catalyst to auditing world in the area of efficient, effectiveness, timely and accurate operation of business. From the foregoing, computerized audit as a way of checking the efficiency and accuracy of data procedures present a fascinating study.

An audit is an independent or objective examination of the financial statement of an entity and the expression of an opinion. It could be inferred that the primary reason of conducting an audit is to enable the Auditor make a report to the effect that the financial statement as prepared by officers of an establishment gives a true and fair view, otherwise to what extent they disagree with the report.

The auditor along side help to ascertain compliance of the organization to operational policies and prescribed standard. This is aimed at increasing the acceptability, dependability and usefulness of financial statement.

STATEMENT OF THE PROBLEM

The research will be concerned with the problems faced by auditors and will offer solution to them. Those problems are:

  • Complexity of the computer systems
  • Non-existence of visible evidence
  • Possibility of systematic errors
  • Non retention of files and data
  • Lack of audit trail. The tracing of individual transaction through the system from source to completion.

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Computerized Auditing System: A computer is an electronic device, which works faster than the ordinary human brain. Although a computer has no brain of its own to reason like a human being, it has in-built memories that enable it perform complex mathematical problems as fast as possible, faster than the human brain. The background of computing aids can be traced to China where merchants first made use of ABACUS, while the history of modern day computers is traced to French where Pascal in 1642 invented the First Machine for doing the four fundamental operations of arithmetic in money. This was improved upon by Hervrith in 1671 and recommended for use in the large volume of astronomical calculations required at that time. The first analoque computer was derived from Kelvin Tidal analysis for producing tides... accounting project topics

COMPUTERISED AUDIT SYSTEM: ISSUES, PROBLEMS AND PROSPECTS

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