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The BPP text on top of page 107 states that it is not possible to obtain sufficient appropriate audit evidence from substantive procedures alone IN AN EXTENSIVE IT SYSTEM due to lack of documentation of transactions.
Why is this so?
For example, can’t one vouch the sales revenue figure back to the initial entries within the electronic sales account in the GL or is it that one can only vouch back to paper trails for the vouching procedure to have any kind of assurance?From my understanding, it’s like in a supermarket which uses EPOS, the sales is automatically recorded when the item is sold (using the bar code scanner). The sales will electronically go into the GL and finally the final sales revenue figure. You can’t vouch nothing since you don’t have any invoice or whatsoever. So we will test the control to make sure that the sales figure electronically run through the system is correct.
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