An auditor is likely to encounter clients who have implemented all of their accounting on a personal computer system.

Required:

a. Write a brief internal control questionnaire to assist the auditor in evaluating the general controls over a personal computer when a client uses a networked personal computer for accounting processing.

b. One of your clients develops its estimate of warranty expense using a spreadsheet. Identify three alternative computerized audit approaches that the auditor might use to test the logic incorporated into the spreadsheet, as well as the validity of the assumptions included in the spreadsheet.

c. Identify four ways in which the auditor might effectively use personal computers in performing an audit.