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CMA Intermediate · Corporate Accounting and Auditing · Application of Technology in Audit and Audit Trail

In an audit conducted in a computerised information system (CIS) environment, which statement best describes the effect of computerisation on the auditor's overall objective?

The objective of the audit stays the same in a CIS environment, namely forming an opinion on the financial statements. Only the procedures change, because controls and evidence are electronic. Auditors must still evaluate internal control and obtain sufficient appropriate evidence regardless of the software's source.

  1. AThe overall objective of the audit changes because data is stored electronically
  2. BThe overall objective of the audit remains the same, but the audit procedures may need to be adaptedCorrect
  3. CThe auditor is relieved from obtaining sufficient appropriate audit evidence
  4. DThe auditor need not evaluate internal control if the software is purchased from a reputed vendor

Explanation

The scope and objective of an audit do not change merely because data is processed by computers. What changes is the manner in which controls are evaluated and evidence is gathered. Reliance on a reputed vendor does not remove the duty to assess controls and obtain sufficient appropriate evidence.

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