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An electronic data processing audit is an evaluation of the accuracy and proper function of an organization's data processing. Organizations mainly audit the accounting department. Other areas like project management, quality management and energy conservation are also audited. Auditing ensures compliance and checks on fraud of the company's resources.
Organizations have the challenge of dealing with employees' honesty and trustworthiness. Auditing is used to circumvent any question of integrity. An electronic data processing audit is an evaluation of the accuracy and proper function of an organization's data processing. Organizations mainly audit the accounting department. Other areas like project management, quality management and energy conservation are also audited. Auditing ensures compliance and checks on fraud of the company's resources.
Get Electronic DataTo commence the auditing process, auditors must first retrieve the data stored in the computer. Documents such as sales receipts and supplies invoices are used to verify the data entered into the computer. This ensures that correct information was input into the computer.
Data ConversionOrganizations use different types of software to store their data. This data should be converted from the stored software to the auditing software. This is done using special software programs known as package and utility programs. This ensures that there is no inconsistency when auditing data stored in different software.
Compliance TestAuditors need to verify that procedures followed when entering data into the data processing system are being applied as prescribed. These procedures act as the underlying evidence of whether the accounting data is correctly fed into the processing system. Obtaining this evidence involves reviewing the accounting journals, ledgers and worksheets.
Substantive TestAuditors obtain evidence to verify the completeness, validity and accuracy of a client's records. This evidence is an important factor in determining the auditor's opinion on the records. Substantive tests in a merchandising firm would include examining inventory at the end of the period to verify that the levels of such inventory are as indicated in the records
ReportingThe main aim of an audit is to report to the client
Agreed with the answer Mir Mujtaba Ali