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.