A practical approach to auditing computer-based accounting system / Salina Yaacob

This project paper is written with the intention of providing a guideline on how to audit a computer­ based accounting system. Since most organisations have partly or wholly computerised their daily operations, there is a need for auditors to equip themselves with knowledge of Electronic Data Processing (EDP) and the various procedures of computer auditing. The data collected for this project paper is of secondary in nature. The method used is through library research and personal readings. The audit approach of a computerised accounting system does not differ much from the conventional audit of a manual system. The objectives, rules and regulations must still be complied with. Basically, there are two methods of auditing a computer-based accounting system. They are auditing around the computer and auditing through the computer. The first method requires the printout of output and audit work is done on the hard copies. The latter method requires the employment of computer assisted audit techniques (CAATs) which use the client's computer in evaluating the client's software and controls existing in the system. Sometimes both methods are combined depending on the client's system and the results of preliminary investigation on the system's internal controls.