(a) Auditing information systems a company‘s internal auditing staff or external auditors is aimed partly at evaluating whether proper and adequate security measures and management policies have been developed.
(i) Define the term ‗electronic audit trail‘
(ii) Differentiate between auditing around the computer and auditing through the computer and explain the approach which uses electronic audit trial.
(iii) State four skills required of information systems auditors.
(b) Explain the factors that have led to the decentralization of information systems functions.
Electronic audit trail – A record provided some business and financial software of all the transactions that have taken place during previous amendments to data in order that subsequent checking may take place.
(ii)Audit around the computer
Audit around the computer refers to the approach of first reviewing input
data and then directly reviewing outputs from the computer, which circumvents direct usage of the computer. By adopting such an approach, auditor‘s do not review computer Processing or application controls but judge the correctness of the processing examining inputs and outputs.
Audit through the computer
By audit through the computer, auditors examine documents and procedures in the Computerized accounting systems and then further review results of accounting.
– Distributed processing
– Database Technology
– Decentralised organization structures.