(c) Auditing around the computer
This term means that the ‘internal’ software of the computer is not documented or audited by the auditor, but that the inputs to the computer are agreed to the expected outputs from the computer.
This method of auditing increases udit risk because:
– The actual computer files and programs are not tested; the auditor has no direct evidence that the programs are working as documented.
– Where errors are found in reconciling inputs to outputs, it may be difficult or even impossible to determine why those errors occurred. Constructive amendments to clients’ systems cannot be made and there is an increased likelihood of audit qualifications.
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