After determining that computer controls are valid, Hastings is reviewing the sales system of Rosco Corporation to determine how a computer-assisted audit program may be used to assist in performing tests of Rosco's sales records.

Rosco sells crude oil from one central location. All orders are received by mail and indicate the preassigned customer identification number, desired quantity, proposed delivery date, method of payment, and shipping terms. Since price fluctuates daily, orders do not indicate a price. Price sheets are printed daily, and details are stored in a disk file. The details of orders are also maintained on a disk file.

Each morning the shipping clerk receives a computer printout that indicates details of customers' orders to be shipped that day. After the orders have been shipped, the shipping details are entered into the computer, which simultaneously updates the sales journal, perpetual inventory records, accounts receivable, and sales accounts.

The details of all transactions, as well as daily updates, are maintained on disks that are available for Hastings' use in the performance of the audit.

Required:

a. How may Hastings use a computer-assisted audit program to perform substantive tests of Rosco's sales records in their machine-readable form? Do not discuss accounts receivable and inventory.

b. After having performed these tests with the assistance of the computer, what other auditing procedures should Hastings perform to complete the audit of Rosco's sales records?