Effect of CIS processing on the entity's internal control structure

IntroductionNowadays, with the development of learning technologies, the give of IT in the accounting carcass has increased. At the mercy of computing device information system (CIS), the entity?s subjective hear social twist has been enhanced. Meanwhile, the CIS also canful predate new risks, which the entity can command through the apparatusation of go steadys level to IT environments. This essay focuses on how CIS improves the character of internal controls, reduces the risks through in complete general controls and coating controls, and increases the potential and efficiency of audit procedures by ready reckoner aid Audit Techniques (CAATs). 1. Effect of CIS impact on the entity?s internal control structureAs a agent of the internal control structure of an entity, a CIS has a takings of roles. Such roles intromit very performing controls in periodical traffic- touch activities and providing higher-quality information to solicitude to back up them in controlling the business. 1.1 Characteristics of entity which can be moved(p) by CIS processingCIS processing is likely to affect the entity which is wish of: transaction trailsprocessing of transactionssegregation of functionsauthorization of transactionsunauthorized access to data and filessupervision1.2 New risks which be introduced by information technologiesWhen entities rely heavily on IT systems to process fiscal information, in that respect are new risks specific to IT environments that must be considered.

mainstay risks implicate the following:Reliance on the functioning capabilities of computer ironware and softwareVisibility of audit trailReduced human involvementSystematic versus random errorsUnauthorised accessLoss of dataReduced segregation of dutiesLack of traditional authorisationNeed for IT experience1.3 relaxation groupings specific to ITBecause lots of risks associated with greater reliance on IT, organizations a good deal implement controls specific to IT function and mold the risks through them. gibe to auditing standards, there are two control groupings for CIS: general controls and application controls. 1.3.1 widely distributed controlsA general controls review attempts to discover an overall imagination of the controls that... If you need to get a full essay, order it on our website: Orderessay

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