Date: 16 JAN 2018 07:42:35 +0000 From: Arnold Anderson Subject: Apollo Shoes and Computers Darlene mentioned your

Date: 16 JAN 2018 07:42:35 +0000
From: "Arnold Anderson" <AA@aow.cpa>
Subject: Apollo Shoes and Computers

Darlene mentioned your inquiry earlier this week, and yes, Anderson, Olds, and Watershed (AOW) was aware of Apollo’s mid-year information systems department reorganization. In fact, the planned conversion was discussed and AOW was advised of the conversion process by the director of internal audit. I haven’t thought about it much, so I appreciate you bringing it to my attention. The more I think about it, the more I am concerned about how the changed IT processing of the last two quarters’ transactions will affect our audit this year.

Prepare a memo in the General and Administrative section of the current year audit documentation (GA series) to document how planning might be affected by the change in IT systems at Apollo. I am unsure of the extent to which the company followed the recommended procedures in the Systems Development Life Cycle. I suggest you consider which areas of the audit may be affected most by this change, and discuss the data considerations that we will need to make. I would recommend addressing such things as the extent of IT processing in various accounting cycles, the complexity of the IT processing, the organization structure of the IT department, availability of data, computer-assisted audit techniques including the use of software such as IDEA or Tableau, and the need for specialized skills. You may want to reference an Auditing and Information Technology module in your old auditing textbook.

Answer rating: 100% (QA)

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