Isys 414 - Ch 9. Auditing Information Systems

Front 1

auditing

Back 1

Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.

Front 2

financial audit

Back 2

examines the reliability and integrity of accounting records (both financial and operating information) and correlates with the first of the five scope standards.

Front 3

information systems audit

Back 3

reviews the controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets.

Front 4

operational audit

Back 4

concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives.

Front 5

inherent risk

Back 5

the susceptibility to material risk in the absence of controls.

Front 6

control risk

Back 6

the risk that a material misstatement will get through the internal control structure and into the financial statements.

Front 7

detection risk

Back 7

the risk that auditors and their audit procedures will not detect a material error or misstatement

Front 8

materiality

Back 8

what is and is not important in a given set of circumstances

Front 9

parallel simulation

Back 9

similar to reprocessing except that the auditor writes a program instead of saving a verified copy of the source code.

Front 10

test data generator program

Back 10

automatically prepares test data based on program specifications

Front 11

concurrent audit techniques

Back 11

continually monitor the system and collect audit evidence while live data are processed during regular operating hours.

Front 12

embedded audit modules

Back 12

segments of program code that perform audit functions

Front 13

integrated test facility (ITF)

Back 13

places a small set of fictitious records in the master files.

Front 14

snapshot technique

Back 14

examines the way transactions are processed

Front 15

System control audit review file (SCARF)

Back 15

uses embedded audit modules to continuously monitor transaction activity and collect data on transactions with special audit significance.

Front 16

audit hooks

Back 16

audit routines that flag suspicious transactions

Front 17

real-time notification

Back 17

informed of questionable transactions as they occur.

Front 18

Continuous and intermittent simulation (CIS)

Back 18

embeds an audit module in a database management system.

Front 19

scanning routines

Back 19

search a program for occurances of a specified variable name

Front 20

automated flowcharting programs

Back 20

interpret program source code and generate a corresponding program flowchart

Front 21

automated decision table programs

Back 21

generate a decision table representing the program logic

Front 22

mapping programs

Back 22

identify unexecuted program code

Front 23

program tracing

Back 23

sequentially prints all application program steps executed during a program run

Front 24

input controls matrix

Back 24

document the review of source data controls

Front 25

computer audit software (CAS)

Back 25

generates programs that perform the audit functions

Front 26

systems review

Back 26

reviewing system documentation and interviewing appropriate personnel to determine if the necessary procedures are in place

Front 27

tests of controls

Back 27

observing system operations, inspecting documents, records, and reports

Front 28

compensating controls

Back 28

procedures that compensate for the deficiency.

Front 29

reasonable assurance

Back 29

auditor must be willing to accept some risk that the audit conclusion is incorrect