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Sir there is something called “real time system” in the lecture videos. Is it relevant for the syllabus as it isn’t mentioned anywhere in BPP study text.
The only learning outcomes specific to computer systems relate to controls (Chapter 14) and CAATs (Chapter 15). If you were to see specific mention of a real-time system (I cannot recollect anything in recent years), the main thing to bear in mind is that controls over input (system access and completeness and accuracy) need to be strong and that the idea of batch (total) controls is irrelevant (because you can only have that when transactions are collected for processing in batches). A good example of a real-time transaction processing systems is an airline booking system.
Sir another thing. In receivables circularisation does the audior ask the client to write a letter to the debtors asking them to confirm what they owe or do the auditors themselves write it to the debtors?
And is it the same with Payables circularisation as well?Please remember to write new Qs on new topics to new threads with a new subject line (for the benefit of other students reviewing posts for answers to questions), rather than existing posts.
See page 79 of the notes, the client must give permission, but the request for confirmation (and receiving responses) must be strictly controlled by the auditor.
For a payables circularisation, the auditor generally asks for the supplier to send a statement directly to the auditor to confirm what the client owes. If the client receives monthly statements and reconciles them, the auditor may consider making a separate request to be unnecessary.
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