- 30 Marks
AAA – Nov 2018 – L3 – Q1 – Audit of IT Systems and Data Analytics
Training audit personnel on issues and controls for online businesses audit
Question
You are the audit partner of Rolami Adiatu & Company, a firm of Chartered Accountants. In the process of planning an audit, you have identified the need to train audit personnel involved in the audit of clients engaged in online businesses.
You have concluded arrangements with your human resources department to organize training for the firm’s audit team, which includes trainees, supervisors, and managers. You are preparing notes that will assist you in training the team to appreciate the problems that may arise in the audit of online businesses and how they could be minimized.
Required:
a. Prepare briefing notes explaining online systems and the operational advantages they offer to entities that use them. (6 Marks)
b. Identify the general and application controls needed to tackle the audit problems created by online systems. (9 Marks)
c. i. Discuss Electronic Data Interchange (EDI). ii. Explain four possible problems EDI may create for the auditor. iii. Explain four relevant controls to minimize the audit risk inherent in EDI systems. (15 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Application Controls, Audit Risk, EDI Systems, General controls, IT Systems, Online Audit
- Level: Level 3