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The term auditing around computer means that internal software of computer is not audited but that the inputs to the computer are agreed to the expected outputs from the computer
Which of the following is valid explanation why audit risk increases when auditing around computer
a) The actual computer files and programs are not tested therefore auditor has no direct evidence that the programs are working ad expected
b) Where errors are found in reconciling inputs to outputs it may be difficult or even impossible to determine why those errors occured
Sir both statements are true but please can you explain me why
(b) is obvious. You simply have no information about the computer processing.
(a) is less obvious. You will have picked a sample of input and output. Those might be ok, but we have no direct evidence about all the records or calculations. For example, you would not know if the software would reject internet orders that were over a credit limit. If rejected there would probably not be any input or output.
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