In the past, the records to be evaluated in an audit have been printed reports, listings, documents, and written papers, all of which are visible output. However, in fully computerized systems that employ daily updating of transaction files, output and files are frequently in machine-readable forms. Thus, they often present the auditor with an opportunity to use the computer in performing an audit.

Required:

Discuss how the computer can be used to aid the auditor in examining accounts receivable in such a fully computerized system.