You are employed as an audit senior at ABC Auditors. ABC Auditors is a medium-sized audit and

Fantastic news! We've Found the answer you've been seeking!

Question:

You are employed as an audit senior at ABC Auditors. ABC Auditors is a medium-sized audit and accounting firm. Upon completion of your CA (SA) qualification, you furthered your studies with a certificate in computer science.

You have been assigned to the Compute (Pty) Ltd 2022 audit engagement, specifically to assist with all IT-related matters.

You had a meeting with the Financial Director and the Chief Information Officer (CIO), Mr. Brad Curran, of Compute (Pty) Ltd, and made the following notes:

• Compute (Pty) Ltd decided to computerize their debtors and creditors system, where previously they used a manual system.

• The conversion and implementation of the system were approved by all interested stakeholders.

• Compute (Pty) Ltd purchased two additional personal computers to perform the conversion of the system. These two computers were specifically bought to install the accounting system.

• A software consultant was appointed to write and implement the software programme to Compute (Pty) Ltd’s specific needs and standards.

• There are three computer terminals in the Information System (IS) department that are linked online to the mainframe computer in the office of the CIO, Mr. Brad Curran.

• Some of the staff members and top management formed a project team to manage this project. Each member received their specific responsibilities and tasks.

Mr. Curran requested that all parties be involved at the testing stage and that, when the data conversion is completed, proper tests be performed to identify any errors. The following must be used, for example:

➢ Calculated balancing control total on the old and new system’s data;

➢ Investigate the exception reports and unusual items; and

➢ Approval from the user departments, for whom the data conversion was performed, must be obtained.

• He also requested that thorough project management principles be implemented in order to prevent unnecessary errors or delays.

Required:

Provide Compute (Pty) Ltd with controls on disaster recovery that they should implement/have in place to protect their program and data in the event of a fire.