Authorization of transactions is considered an important accounting control. The movement to computerized and paperless accounting systems
Question:
Authorization of transactions is considered an important accounting control. The movement to computerized and paperless accounting systems poses new problems for management in implementing authorization techniques as well as for the auditor in evaluating the authorization controls.
Required:
a. Why is authorization control so important to the auditor? What is the implication to the audit if important transactions do not meet the organization’s criteria for authorization?
b. Whatshould the auditor do upon discovering important unauthorized transactions?
c. How can authorization controls be incorporated into computerized, paperless accounting systems?
Step by Step Answer:
Auditing Concepts For A Changing Environment With IDEA Software
ISBN: 9780324180237
4th Edition
Authors: Larry E. Rittenberg, Bradley J. Schwieger