The auditors of Update Company were considering the use of a computer-assisted audit program to gather and document evidence from their client's computerized files. Most of the transactions, including accounts receivable and inventory, were processed by Update Company's computer system.

One of the auditors, Ms. Current, suggested that as much information as possible be taken from Update Company's computerized system by the use of a computer-assisted audit program. She made a list of each financial statement account on which information could be taken from computerized files with the use of a computer-assisted audit program. She also made a list of the information for each account that could be taken from the computer files in this manner. The other auditor, Mr. Leave, agreed that much information could be obtained from Update Company's computer files in an efficient way by using the computerassisted audit program. He contended, however, that the information itself was not an audit procedure and that audit procedures would have to be performed on each item of information taken from the computer files. He wondered whether it would be more efficient simply to obtain printouts of the computer files and select the information they needed from these printouts to conduct the necessary audit procedures.

Required:

a. List the accounts and the information for each account that Ms. Current probably had in mind. (Hint: Consider each account on which computer files are probably maintained and list the information the auditor would probably need.)

b. List the audit procedures that Mr. Leave probably has in mind that will be conducted with the use of the information taken (at Ms. Current's suggestion) from Update Company's computer files.

c. What potential problems could the auditor have if no computer-assisted audit program is used?