Bing Properties plc is a large property developer in the north of England. It has two divisions, industrial and domestic. The industrial division builds factories and offices for various clients and also contracts on major construction projects such as schools and hospitals as one of several contractors. Its domestic division builds houses. Bing has a substantial land bank acquired over many years but also specializes in converting 'brownfield' sites, former factory sites, into housing developments.
It has recently purchased a new computer system. All incoming documents, letters, invoices, advice notes, etc. are sent to the central processing office where they are scanned into the computer. They are then sent to a warehouse for storage. As they are scanned in, they are identified by type by the operator and the computer then allocates the document a unique number which is used to track its progress through the system. Staff are able to call up images of the documents on screen.
A purchase invoice from a supplier, for example, is batched with several others and then the batch is scanned into the computer. The supplier's name is read electronically, and the operator enters the invoice details such as amount, VAT, etc. and a nominal code. The transactions are then processed by the computer.
If the invoice is queried its image can be held in a special file in the computer. Copies can be printed as required. Sales invoices and requests for payment are generated on screen and only printed to be sent to the customer. There are no copies, but an image of the invoice can be created on screen as required. Only cash and bank transactions are dealt with in a conventional way.

Discussion
- What approach could be taken by the auditors?
- How will this type of system affect conventional audit approaches?