Abstract
M.Com. (Accounting & Auditing)
External and Internal auditors have to deal with computer systems which
are becoming increasingly complex. An auditor's interest in such an
environment is primarily an understanding of the controls over the
computer system and the risk of error and fraud. When dealing with
controls two issues are important. The first deals with the ability to
control a complex computer system. Unless the control issues are
understood and the impact of various alternatives appreciated it would be
impossible to control a computer system. Under such circumstances there
is a high risk of error and fraud and the information present in a
business could be very unreliable.
Secondly the auditor needs to evaluate controls for purposes of his
audit. Usually the objective is to assure himself that they adequately
safeguard the business assets and prevent or detect errors present in the
accounting records of the concern...