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11-29 (Auditing around versus through the computer)

11-29 (Auditing around versus through the computer)
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Solution Guide / Answer Key:

ACCOUNTING

ACC/490 (ACC490)
AUDITING
University of Phoenix (UoP)

Boynton, W. C., & Johnson, R. N. (2006)
Modern Auditing: Assurance Services and the Integrity of Financial Reporting (8th ed.)
Hoboken, NJ: John Wiley & Sons.

11-29 (Auditing around versus through the computer) CPAs may audit “around” or “through” computers in examining financial statements of clients who use computers to process accounting data.

Required
a. Describe the auditing approach referred to as auditing around the computer.
b. Under what conditions does the CPA decide to audit through the computer instead of around the computer?
c. In auditing through the computer, the CPA may use test data.
1. What are test data?
2. Why does the CPA use test data?
d. How can the CPA become satisfied that the computer program tapes presented by the client are actually being used to process its accounting data?
AICPA

 

FILE: MS WORD

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