- 15 Marks
AAA – Nov 2021 – L3 – Q6 – Audit of IT Systems and Data Analytics
Outline application controls for computerised systems and develop an audit strategy following ISA 300 for large, computerised clients.
Question
The firm you work for has considered the growing development in some sectors of the economy and the opportunities this development portends.
Your firm is a sole practitioner, and though the partner has the skills and professional competences necessary to undertake big jobs, applications for big jobs have always been turned down.
To get involved and secure some of these big jobs, your partner has dialogued with some other sole practitioners who share the same view. They have agreed to operate a merged firm starting in the year 2022. Appropriate registration of the new practice name with the Corporate Affairs Commission and application for a license in the new name from the Institute are being processed. To prepare for securing and executing some of these big jobs, preparations are set to commence once the registrations are approved. Some of the target jobs involve computerised entities, so your partner has assigned you some preparatory tasks, as he is the lead partner.
Required:
a. Prepare a document showing the application controls that will be focused on in the computerised systems of the entities. (7 Marks)
b. Develop an appropriate audit strategy in accordance with ISA 300, “Planning an audit of financial statements.” (8 Marks)
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