Friday, January 28, 2011

Understand Information Systems Relevant to the Audit

• The manner in which transactions are initiated

• The nature and type of records and source documents

• The processing involved from the initiation of transactions to their final processing, including the nature of computer files and the manner in which they are accessed, updated, and deleted

• For financial audits, the process used to prepare the entity's financial statements and budget information, including significant accounting estimates, disclosures, and computerized processing.

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