Disadvantages of auditing around the computer

  • What are the advantages of auditing around the computer?

    A.
    Increased accuracy in recording transactions.B.
    Reduced storage problems.C.
    Improved legibility of records.D.
    Enhanced flexibility in audit programs..

  • What are the advantages of auditing around the computer?

    Auditing through the computer is the process of reviewing and evaluating the internal controls in an electronic data processing system..

  • What are the disadvantages of auditing?

    Disadvantages of Audit

    Expensive: This process puts a heavy monetary cost on a firm for execution. Not Suitable for Small Businesses: Chances of Uncertainty in the Report: Lack of Certainty in Standards: Lack of Participation: Ignorance of Technology: Less Guaranteed:.

  • What are the disadvantages of auditing?

    Auditing around the computer increase the audit risk because actual computer files and programs are not tested therefore auditor has no direct evidence that the programs are working as expected..

  • What are the problems of computer audit?

    Complexity of the computer systems.
    Non-existence of visible evidence.
    Possibility of systematic errors.
    Non retention of files and data..

  • What is the disadvantage of computerized audit?

    Disadvantage: Potential Fraud
    There is also the risk of someone within the business accessing the information, perhaps pilfering money from daily deposits and altering the data in the program..

  • What is the risk of auditing around the computer?

    A.
    Increased accuracy in recording transactions.B.
    Reduced storage problems.C.
    Improved legibility of records.D.
    Enhanced flexibility in audit programs..

  • Disadvantages of Audit

    Expensive: This process puts a heavy monetary cost on a firm for execution. Not Suitable for Small Businesses: Chances of Uncertainty in the Report: Lack of Certainty in Standards: Lack of Participation: Ignorance of Technology: Less Guaranteed:
  • Chances of fraud: Audit may lead to errors and frauds in a business.
    Audit staff may perform their task carelessly and present an inaccurate audit report.
    Also, there may be chances where staff auditing accounts may be harassed within the organization and may be forced to manipulate the figures.
  • There can be several challenges when conducting a computer audit.
    One challenge may be gaining physical access to the computers in question.
    If the organization stores its computers in a secured location, auditors may need to obtain permission to enter the area and then follow any security procedures that are in place.
Disadvantages:
  • Input data goes through many changes and true comparisons are limited.
    ADVERTISEMENTS:
  • It is tedious and time consuming.
  • Auditors does not use computer as a tool to help in auditing.
,Rating 5.0 (12) A disadvantage of auditing around the computer is that it a.Permits no direct assessment of actual processing.
b.Requires highly skilled auditors.
c.

How does a computer code affect audit risk?

Codes don't actually exist, e

,g,customer, supplier and employee; Meaning the auditor does not audit how the computer works, but rather checks that the inputs generate the expected outputs from the system This increases audit risk as the auditor cannot tell with certainty whether the internal processes of the system are working correctly

What are the disadvantages of a software audit?

Several disadvantages in this setup include that the auditor experiences extra overhead in using extra programs to install into the company's software

The auditor must note when an unusual transaction happens, which may be difficult if not understanding the normal types of business transactions


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