What are the important features of distinction between computer-based system of according and those of a Conventional nature?

Auditing and Assurance Revision Questions and Answers

The important features of distinction between computer-based system of accounting from that of a conventional nature are as follows:

1. Absence of input documents: In computerized environment, during online data entry data entry is done live. In such circumstances input documents are not used.

2. Design: It is more difficult and time consuming to design and install a computer-based system of accounting than a conventional one.

3. Complexity & Reliability: Computer system is often more complex than a conventional system (e.g. the combination if traditionally separate accounting operations within one computer application); computerized system are generally very reliable.

4. Organization Structure: A large part of the whole system of processing becomes concentrated in the computer department (i.e. that part of the EDP installation becomes responsible to the EDP manager);

5. Lack of Visible Audit Trail: The steps in computer processing and the records hell on magnetic files are not visible unless printed out. There is lack of a visible audit trail in a computer-based system.

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