1. Explain how client internal controls can be improved through the proper installation of IT. 2. Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error. 3. Explain what is meant by auditing around the computer, and describe what must be present for this approach to be effective in the audit of a client that uses IT to process accounting information. 4. An audit client is in the process of creating an online Web-based sales ordering system for customers to purchase products using personal credit cards for payment. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk. 00000000000
1. Explain how client internal controls can be improved through the proper installation of IT. 2. Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error. 3. Explain what is meant by auditing around the computer, and describe what must be present for this approach to be effective in the audit of a client that uses IT to process accounting information. 4. An audit client is in the process of creating an online Web-based sales ordering system for customers to purchase products using personal credit cards for payment. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk. 00000000000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Explain how client internal controls can be improved through the proper installation of IT. 2.
Distinguish between random error resulting from manual processing and systematic error resulting from
IT processing and give an example of each category of error. 3. Explain what is meant by auditing around
the computer, and describe what must be present for this approach to be effective in the audit of a client
that uses IT to process accounting information. 4. An audit client is in the process of creating an online
Web-based sales ordering system for customers to purchase products using personal credit cards for
payment. Identify three risks related to an online sales system that management should consider. For
each risk, identify an internal control that could be implemented to reduce that risk. 00000000000
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