ADMS 4552 : Chapter 18 notes - audit of system conversion.docx

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When an organization changes an entire system or set of system, 3 issues. New system of internal controls needs to be documented and evaluated: may require new procedures. Auditor will need to audit the actual data conversion process: requires a risk assessment process. If implementation process is properly planned, conducted and supervised, you can rely on controls more . If controls over that are poor, auditor must conduct tests of details of balances. Auditor will need to determine whether accounting policies have been changed: for example lifo to fifo gather sufficient evidence that there is adequate disclosure for this change. 2 audit objectives are not included - classification (accuracy and agreement between two systems ensures classification is satisfied, and posting and summarization) Conversion audit - comprises the audit procedures required when an organization changes its system to a different one emphasis is on accuracy and cut-off. Only authorized vendors are established with balances for g/s actually received (existence)

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