Automated tools and Techniques

Question 1

What are automated tools techniques?

Answer 1

Applications of auditing procedures using the computer as an audit tool

Question 2

How can computers be used to perform?

Answer 2

Either substantive procedures or tests of control

Question 3

Advantage of automated tools and techniques (test program controls)

Answer 3

Auditors can test program controls as well as general internal controls associated with computers

Question 4

Advantage of automated tools and techniques (greater number of items)

Answer 4

Auditors can test a greater number of items more quickly and accurately than would be the case otherwise

Question 5

Advantage of automated tools and techniques (test transaction)

Answer 5

Auditors can test transactions rather than paper records of transactions that could be incorrect

Question 6

Advantage of automated tools and techniques (cost effective)

Answer 6

Automated tools and techniques are cost effective in long term if client does not change its systems

Question 7

Disadvantage of automated tools and techniques (setting up software)

Answer 7

Setting up software needed for automated tools and techniques can be time consuming and expensive

Question 8

Disadvantage of automated tools and techniques (audit staff)

Answer 8

Audit staff need to be trained so they have a sufficient level of IT knowledge to apply automated tools and techniques

Question 9

Disadvantage of automated tools and techniques (client systems)

Answer 9

Not all client systems will be compatible with software used with automated tools and techniques

Question 10

Disadvantage of automated tools and techniques (client data)

Answer 10

Risk that client data is corrupted and lost during the use of automated tools and techniques