The challenge of EDP auditing

Article Abstract:

The purpose of auditing electronic data processing systems (EDP) is to confirm that they are performing according to corporate objectives and internal accounting procedures. There are five basic techniques for auditing EDP. The test data method involves running computer tests with test data. The integrated test facility method is similar to the test data method but uses production versions of application programs. Parallel simulation uses a program to simulate live applications. The audit subsystem is like the integrated test facility method, but creates a system control audit review file in which records are entered into a master file as each transaction is processed. Snapshots, mapping, and tracing techniques analyze computer codes as programs are executed. These methods may be combined, but management, EDP, and auditors must first define common goals.

Software, Accounting and auditing, Data processing, Electronic data processing

---

Improved internal controls can cut audit costs

Article Abstract:

The relationship between internal control ratings, the amount of interim testing and total audit hours was studied. The results showed a positive relationship between controls, testing, and total audit hours, which means that audit hours (and audit costs) can be reduced by improving internal operating controls over costs. 19 accounting firms were surveyed for information about the size of audit clients, the number of hours required to perform audits, assessments of the audit clients' systems of internal control, and the use of interim testing by the audit client. The data showed although sales volume is a starting point for predicting total audit hours, the average audit hours per million dollars in sales is determined by the presence or absence of internal controls.

Finance, Statistics, Auditors

---

How to cut travel costs

Article Abstract:

Companies can lower their travel costs by following the example of a Chicago-based Fortune 500 company. The company was able to lower its costs after an analysis was made of the total amount the firm spent on travel. This analysis can be accomplished through the use of one travel agency, which makes it easier to track expenses. An analysis of expense reports and credit card reports is useful as well. Companies can negotiate with travel services if they have a large volume of business travelers, or they can use a consortium of travel agencies to obtain the best rates. Companies with a travel policy will help their employees understand the need for cost control. One of the most important things a company can do to lower travel costs is to hire a travel manager.

Control, Travel costs

Similar abstracts:

• Abstracts: The coaching challenge. Reflective learning: what is it exactly?. We learn like we eat
• Abstracts: The role of the accounting rate of return in financial statement analysis. Investment decisions and the equity accounting standard
• Abstracts: Not-for-profit accounting and auditing in the early eighteenth century: some archival evidence. Client control environments: an examination of auditors' perceptions
• Abstracts: Evidence on the nature of audit planning problem representations: an examination of auditor free recalls. A decision-support system for audit-staff scheduling with precedence constraints and due dates
• Abstracts: Are the classical management functions useful in describing managerial work? Empirical science: new frontier in operations management research

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.