There are fundamental differences between manual systems and computerized systems. The manual systems are likely to physical controls as opposed to the computerized systems whereby the controls may be both physical controls and system in – built. The fundamental differences are:
1. Computerized systems are complex as compared to manual systems. The auditor is likely to spend a few hours to understand a manual system but a computerized system may take a lot of time to understand besides requiring expert skill and technical know – how.
2. A separation between computer and user personnel that may be physical but is also likely to psychological and due to use of technical jargon and language in speech communication. The natural physical check for errors and fraud may not be in place.
3. There is lack of visible and physical evidence in computerized systems as opposed to manual systems. The information contained in soft records is not easily examined.
4. The data in soft copies may be stored for a short period of time as opposed to manual system where data can be stored for a long periods of time
5. Computerized systems can have automatic control to check as programmed. Manual systems lack this capability.
6. It is easy to access data and output in computerized systems as opposed to manual systems where data must be accessed manually.
7. Lack of audit trail in computerized systems as opposed to manual systems where one trace a transaction through the system from initialization up to the end
8. A single input in a computerized system update all the necessary file as opposed to manual system where the update must be done to each and every file
