RSM427H1 Lecture Notes - Lecture 2: Data Redundancy, Transaction Processing, Financial Statement
Document Summary
I(cid:374)ter(cid:374)al auditors" (cid:272)o(cid:374)(cid:272)er(cid:374)s are (cid:272)losel(cid:455) alig(cid:374)ed with (cid:373)a(cid:374)age(cid:373)e(cid:374)t"s: only ia cares about efficiency (money saving, e(cid:454)ter(cid:374)al auditors" (cid:272)o(cid:374)(cid:272)er(cid:374)s are i(cid:374) li(cid:374)e with (cid:373)a(cid:374)age(cid:373)e(cid:374)t"s (cid:271)ut also tied to fi(cid:374)a(cid:374)(cid:272)ial statement correctness and going concern, less to efficiency and profitability. Risks in using it: think of risk as the absence of attributes that you want to see in a system or process to ensure. It risks can occur in the input, processing and output phases of a transaction cycle. It risks can also occur on stored data: there are also risks in simply retrieving data. Incorrect input (entering wrong grades for students: untimely input (entering a course drop form after the drop deadline, u(cid:374)authorized tra(cid:374)sa(cid:272)tio(cid:374) (o(cid:374)e (cid:272)usto(cid:373)er e(cid:374)teri(cid:374)g a we(cid:271) tra(cid:374)sa(cid:272)tio(cid:374) usi(cid:374)g a(cid:374)other (cid:272)usto(cid:373)er"s. Incomplete input (omitting a grade for a student) account: unauthorized change to master files (a warehouse staff member changes sale price) Inaccurate processing: undocumented processes, unauthorized processing, untimely processing.
