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Project Topic:

THE ROLE OF AUDITORS IN COMPUTERIZED ACCOUNTING SYSTEMS

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 73 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   2,466 people found this useful

Project Department:

ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

1.1       INTRODUCTION

Computer is an electric device, which accept and process

data by following a set of instruction (programmers) to produce an accurate and efficient result (information).  It is very systematic and computer and operates within a system theory.  It has input, control processing units, output and the backing storage.

A computer may be analog; digit and hybrid computers.  It can also be mainframe, mini and micro computer.

        Computer has passed many generation.  We are now in the fifth generation of computer known as the micro age.  Computer of this generation uses artificial intelligent.  It is important that the auditor, auditing in computer environment, like companies to be aware of the nature of computer accounting system uses in such companies.  A computerized accounting system is a system which the electronic data processing (EDP) is used in recording, processing, retrieving and up dating the accounting records.  The use of EDP in accounting system keeps a very wide rang accounting information, such a pay role, purchases and creditor ledger, sales and debtors ledger, cash book inventories, fixed assets as well as financial analysis of profit projection or forecasting cash flow and statement budgeting, capital investment and many others.

The use of computer in the accounting system ensure more efficient and reliability in processing of information since computer hardly make mistake. Unless mistake resulting from faulty data input.

In auditing organization with computerized system, the auditor responsibilities and duties do not change rather it is the means and form of processing financial that changes.

The auditor still owns the duty of skill and care in carrying out his assignment or engagement.  It becomes indispensable that the auditor should acquaint himself with the particular management information system, especially the computer installation concerned.

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