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 a "test deck."

1. What is a "test deck"?

2. Why does the CPA use a "test deck"?

d. How can the CPA satisfy himself that the computer program tapes presented to him are actually being used by the client to process its accounting data?