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