AUDIT SYSTEM: ISSUES, PROBLEMS AND PROSPECTS
CASE STUDY OF AKINTOLA WILLIAMS DELOITTE, ABUJA)
of contents viii
Background of the
Statement of the
Objective of the
Scope of the study 6
Significance of the
Definition of Terms 8
Developed programs 15
around the computer 16
Impact of computer
audit on auditors 18
computer use 19
and tasks for audit 20
Issues involved in
computer audit 23
Implication of the
audit procedure 29
with computer 30
Methods of data
Research Assumptions 39
Data analysis 40
Schedule for testing
of hull hypothesis 56
for testing null hypothesis 58
Decision rule 60
Conclusion and Recommendation
OF THE STUDY
Computerized Auditing System: A computer is an
electronic device, which works faster than the ordinary human brain. Although a
computer has no brain of its own to reason like a human being, it has in-built
memories that enable it perform complex mathematical problems as fast as
possible, faster than the human brain. The background of computing aids can be
traced to China
where merchants first made use of ABACUS, while the history of modern day
computers is traced to French where Pascal in 1642 invented the First Machine
for doing the four fundamental operations of arithmetic in money. This was
improved upon by Hervrith in 1671 and recommended for use in the large volume
of astronomical calculations required at that time. The first analoque computer
was derived from Kelvin Tidal analysis for producing tides.
Since the first office computer LED Ilyans end
co-electronic Office was introduced in 1953, machine have increased on speed,
reliability and new used in wide range of application without any change in the
fundamental principles. The introduction of computer has made accounting such
as auditing easier and quicker to perform. The computer is capable of
performing a months transaction of auditing work of an organization in a few
hours thus reducing the job of the Auditor.
This auditor need to learn about computer
programming or at least should be able to follow the transaction trail up to
the paint where they are keyed into the computer in form of input since there
is usually a Loss of Visible Evidence (LOVE) during operation. The Auditor
should be able to relate the input to output. It is also advisable for an
Auditor to take a course in computer programming in output data in course of
his audit trail.
The fast developing of technology, paper
transactions are fast disappearing, consequently, source documents are less
available. The introduction and adoption of computer to the Auditor business
has led to revolution in data processing methods. They have served as a
catalyst to auditing world in the area of efficient, effectiveness, timely and
accurate operation of business.
From the foregoing, computerized audit as a way
of checking the efficiency and accuracy of data procedures present a
An audit is an independent or objective
examination of the financial statement of an entity and the expression of an
opinion. It could be inferred that the primary reason of conducting an audit is
to enable the Auditor make a report to the effect that the financial statement
as prepared by officers of an establishment gives a true and fair view,
otherwise to what extent they disagree with the report.
The auditor along side help to ascertain compliance
of the organization to operational policies and prescribed standard. This is
aimed at increasing the acceptability, dependability and usefulness of
OF THE PROBLEM
The research will be concerned with the problems
faced by auditors and will offer solution to them. Those problems are:
Complexity of the
Non retention of
files and data
Lack of audit trail.
The tracing of individual transaction through the system from source to
computerized accounting has a significant influence on the auditor
Ho: A computerized accounting system has no
significant influence on the auditor.
In line with the above purpose of the study some
questions are design to enable the research address the issue. These questions
What are the causes
of the problem in computerized system of auditing?
How will the auditor
carry out his auditing functions in a computerized system?
What are the impacts
of computerized system and the Auditor function
Is there any need
for Auditors in a computerized system
Would it be easy for
Auditors to detect computer fraud using computerized system?
How would the
computer system influence opinion of Auditors?
function affected by the use of computers?
OF THE STUDY
The purpose of the research is as follows:
To examine the
advantages of audit
To examine the
To examine the
responsibilities of Auditors in a computerized environment.
To access the
computerized procedure in Akintola Williams Deloitte and see how they combat
fraud and errors.
OF THE STUDY
This research work is conducted with computerized
audit approach as it is obtained at Akintola Williams Deloitte. It also
emphasizes on the assessment of computerized procedure in achieving
effectiveness and efficiency in audit operations. Included is the analysis of
the problems associated with the new computerized system of auditing firms in
relation to its effects in the operation of the firms.
OF THE STUDY
The significance of the study is derived from the
impact of computerized auditing system and also the value ascribed to it by the
The study has a significant impact on auditors.
It will consider computerized auditing system,
records auditing system, records and accurate way of applying computer in
keeping records in Akintola Williams Deloitte Abuja.
The decision makers will also immensely from the
appropriate information would be available for decision making and planning.
The researcher will also find the significance of
the project in their quest for knowledge and also as a useful contribution to
their field of study.
In the past, auditing of public and private
organization have been carried out by the conversational method making it time
consuming and problems encountered led to the development of computerized
audit, thus helping to overcome the shortcomings of the conventional method.
The computerized auditing system however, created its own problems which
hinders the Auditor from discharging his responsibilities. The research will
try to address these problems. The research may not provide absolute solution
for these problems but will try to reduce some likely errors which may be
created or affect the Auditor during audit work in a computerized environment.
The delimiting factors affecting the full
coverage of this are:
Data collection for
research is not easy
include financial handicap because research work demand more funds than one
Lack of relevant
books on the topic and other periodical materials.
Nevertheless, much will be done
on the work despite these constraints.
1.8 DEFINITION OF TERMS
To accomplish the objective and aim of this work,
it is therefore necessary th