Day: March 20, 2022

There may be need for manual controls to for instance, a check to reveal that all purchase orders have been appropriately authorized before a transaction is submitted for processing. Processing controls. These controls seek to ensure that transactions are processed Read More …

To mitigate the risks occasioned by the features of a computerized information system, the management should design internal controls over the system. These controls are mainly classified into general controls and application controls. 1. General controls. These relate to the Read More …

The actual approach adopted by the auditor will depend on: The auditor‘s experience with the client. The control environment. The complexity of the computerized information system. The risk profile of the client. The risk of misstatements in the financial statements. Read More …

These are equivalent of books and records in a manual system and are described as either transaction files or master files. 1. Transaction files. These are equivalent of journal such as sales journal, the purchases journal or the cash book. Read More …

Programs are the instructions telling the computer how each type of transaction is to be processed. These instructions include routines of checking and controlling data, matching data with master files and performing mathematical operations on data. E.g. for sales transactions, Read More …

Unqualified opinion. Disclaimer opinion Qualified opinion Adverse opinion 1. Unqualified opinion. This is issued when the auditor is satisfied in all material aspects that enable him express the required opinion on financial statements without any reservation. This is sometimes called Read More …