Auditing in a Computerized Information Systems (CIS) Environment

1. Explain the sentence "The overall objective and scope of an audit does not change in a CIS environment. However, the use of a computer changes the processing, storage and communication of financial information and may affect the accounting and internal control systems employed by the entity."

2. Explain why the auditor should have sufficient knowledge of the CIS to plan, direct, supervise and review the work performed.

3. Differentiate the process of planning the audit in a manual system and a computerized system.

4. Identify the risks of using a computerized system in the process of audit.

5. Explain the sentence "The auditor's specific audit objectives do not change whether accounting data is processed manually or by computer. However, the methods of applying audit procedures to gather evidence may be influenced by the methods of computer processing.