Information Technology Auditing and Assurance

Name: Information Technology Auditing and Assurance
Availability: OutOfStock
ISBN: 9780324191981

ISBN-10: 0324191987

ISBN-13: 9780324191981

Edition: 2nd 2005 (Revised)

Authors: James A. Hall, Tommie Singleton

List price: $192.95

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Understand how audits take place in the real world with INFORMATION TECHNOLOGY AUDITING AND ASSURANCE and its accompanying ACL software! With coverage of traditional auditing as well as auditing of information systems, this accounting text provides you with the background you need to succeed in the real world. ACL Fraud and Auditing Cases, ACL Tutorials, Computer Aided Audit Tools and Techniques, and Chapter-Ending Projects are just a few of the tools that will prepare you for success in your future career.

Book details

List price: $192.95
Edition: 2nd
Copyright year: 2005
Publisher: Cengage South-Western
Publication date: 7/27/2004
Binding: Paperback
Pages: 592
Size: 10.00" wide x 8.00" long x 1.50" tall
Weight: 2.552
Language: English

James A. Hall is Associate Professor of Accounting and Information Systems at Lehigh University in Bethlehem, Pennsylvania. After his discharge from the U.S. Army, he received a BSBA and an MBA from the University of Tulsa. He earned his PhD from Oklahoma State University. Dr. Hall has worked extensively in the field of systems analysis and computer auditing and has served as a professional consultant to numerous organizations. Dr. Hall has published articles in the Journal of Accounting, Auditing and Finance, Management Accounting, the Journal of Computer Information Systems, the Journal of Accounting Education, the Review of Accounting Information Systems, and other professional journals.

Tommie Singleton is the Marshall IS Scholar and assistant professor of information systems at the University of Alabama at Birmingham. After his discharge from the U.S. Navy, he completed his BS in Accounting in 1977, and an MBA in 1979, both at the University of North Alabama. Professor Singleton received his doctorate from the University of Mississippi in 1995, after spending 11 years as president of a small software company. His career is a mix of accounting and information systems (IS) and includes consulting and providing continuing education to professionals regarding auditing and IS. He earned certifications as CPA, CMA, CISA, and CITP. In 1999, the Alabama Society of CPAs awarded…




Auditing, Assurance, and Internal Control


Different Types of Audits


Internal Audits


Information Technology Audits


Fraud Audits


External/Financial Audits


External versus Internal Audits


What Is a Financial Audit?


Attest Services versus Assurance Services


Auditing Standards


A Systematic Process


Management Assertions and Audit Objectives


Obtaining Evidence


Ascertaining the Degree of Correspondence with Established Criteria


Communicating Results


Audit Risk


Audit Risk Components


Audit Risk Formula/Model


The Relationship Between Tests of Controls and Substantive Tests


What Is the Role of the Audit Committee?


What Is an IT Audit?


The IT Environment


The Structure of an IT Audit


Internal Control


Brief History of Internal Control


Modifying Assumptions


Exposures and Risk


The PDC Model


Statement on Auditing Standards No. 78


The Importance of the Internal Controls


General Framework for Viewing IT Risks and Controls


Summary



Computer Operations


Structuring the Information Technology Function


Centralized Data Processing


Segregation of Incompatible IT Functions


The Distributed Model


Controlling the DDP Environment


The Computer Center


Computer Center Controls


Disaster Recovery Planning


Fault Tolerance Controls


Operating Systems and System-Wide Controls


Operating System Security


Threats to Operating System Integrity


System-Wide Controls


Controlling Access Privileges


Password Controls


Controlling Against Malicious Objects and E-Mail Risks


Controlling Electronic Audit Trails


Personal Computer Systems


PC Operating Systems


PC Systems Risks and Controls


Summary



Data Management Systems


Data Management Approaches


The Flat-File Approach


The Database Approach


Centralized Database Systems


Database Management System


Users


The Database Administrator


The Physical Database


Three DBMS Models


Databases in a Distributed Environment


Centralized Databases


Distributed Databases


Concurrency Control


Controlling and Auditing Data Management Systems


Access Controls


Backup Controls


Summary



Systems Development and Maintenance Activities


Participants in Systems Development


Why Are Accountants and Auditors Involved with SDLC?


How Are Accountants Involved in the SDLC?


Information Systems Acquisition


In-House Development


Commercial Systems


The Systems Development Life Cycle


Systems Planning--Phase I


Systems Analysis--Phase II


Conceptual Systems Design--Phase III


System Evaluation and Selection--Phase IV


Detailed Design--Phase V


System Programming and Testing--Phase VI


System Implementation--Phase VII


Systems Maintenance--Phase VIII


Controlling and Auditing the SDLC


Controlling New Systems Development


Controlling Systems Maintenance


Summary



Networks, Internet, and E-Commerce


Networks


Types


Network Topologies


Architectures


Protocols


Components


Internet


Internet Types/Applications


Components


EDI


Electronic Commerce


Types


Components


Risks


Controlling Internet/E-Commerce


Controls


Audit Objectives


Audit Procedures


Summary



Issues of Increasing Importance to the Accounting Profession


Seals of Assurance


Privacy Violation


Audit Implications of XBRL


Continuous Auditing


Electronic Audit Trails


Confidentiality of Data


Authentication


Nonrepudiation


Certification Authority Licensing


Data Integrity


A Changing Legal Environment



Enterprise Resource Planning Systems


What Is an ERP?


ERP Core Applications


Online Analytical Processing


ERP System Configurations


OLTP versus OLAP Servers


Database Configuration


Bolt-On Software


Data Warehousing


Modeling Data for the Data Warehouse


Extracting Data from Operational Databases


Cleansing Extracted Data


Transforming Data into the Warehouse Model


Loading the Data into the Data Warehouse Database


Decisions Supported by the Data Warehouse


Supporting Supply Chain Decisions from the Data Warehouse


Risks Associated with ERP Implementation


Big Bang versus Phased-In Implementation


Opposition to Changes to the Business Culture


Choosing the Wrong ERP


Choosing the Wrong Consultant


High Cost and Cost Overruns


Disruptions to Operations


Implications for Internal Control and Auditing


Transaction Authorization


Segregation of Duties


Supervision


Accounting Records


Access Controls


Auditing the Data Warehouse


Summary



Leading ERP Products


SAP


J.D. Edwards


Oracle


PeopleSoft


BAAN



Computer-Assisted Audit Tools and Techniques


Application Controls


Input Controls


Processing Controls


Output Controls


Testing Computer Application Controls


Black-Box Approach


White-Box Approach


Computer-Aided Audit Tools and Techniques for Testing Controls


Test Data Method


The Integrated Test Facility


Parallel Simulation


Summary



CAATTs for Data Extraction and Analysis


Data Structures


Flat-File Structures


Hierarchical and Network Database Structures


Relational Database Structures


Embedded Audit Module


Disadvantages of EAMS


Generalized Audit Software


Using GAS to Access Simple Structures


Using GAS to Access Complex Structures


Audit Issues Pertaining to the Creation of Flat Files


ACL Software


Input File Definition


Customizing a View


Filtering Data


Stratifying Data


Statistical Analysis


Summary



Auditing the Revenue Cycle


Overview of Revenue Cycle Technologies


Batch Processing Using Sequential Files--Manual Procedures


Batch Processing Using Sequential Files--Automated Procedures


Batch Cash Receipts System with Direct Access Files


Real-Time Sales Order Entry and Cash Receipts


Revenue Cycle Audit Objectives, Controls, and Tests of Controls


Input Controls


Process Controls


Output Controls


Substantive Tests of Revenue Cycle Accounts


Revenue Cycle Risks and Audit Concerns


Understanding Data


Testing the Accuracy and Completeness Assertions


Testing the Existence Assertion


Testing the Valuation/Allocation Assertion


Summary



Auditing the Expenditure Cycle


Overview of Expenditure Cycle Technologies


Purchases and Cash Disbursement Procedures Using Batch Processing Technology


Reengineering the Purchases/Cash Disbursement System


Overview of Payroll Procedures


Expenditure Cycle Audit Objectives, Controls, and Tests of Controls


Input Controls


Process Controls


Output Controls


Substantive Tests of Expenditure Cycle Accounts


Expenditure Cycle Risks and Audit Concerns


Understanding Data


Testing the Accuracy and Completeness Assertions


Review Disbursement Vouchers for Unusual Trends and Exceptions


Testing the Completeness, Existence, and Rights and Obligations Assertions


Summary



Introduction to Business Ethics and Fraud


Ethics


What Is Business Ethics?


How Some Firms Address Ethical Issues


What Is Computer Ethics?


Fraud and Accountants


Factors that Contribute to Fraud


Financial Losses from Fraud


The Perpetrators of Fraud


The Underlying Problems


Sarbanes-Oxley Act


Anit-Fraud Profession


Summary



Fraud Schemes and Fraud Detection


Fraud Schemes


Fraudulent Statements


Corruption


Asset Misappropriation


Auditor's Responsibility for Detecting Fraud


Fraudulent Financial Reporting


Misappropriation of Assets


Auditor's Response to Risk Assessment


Response to Detected Misstatements Due to Fraud


Documentation Requirements


Fraud Detection Techniques


Payments to Fictitious Vendors


Payroll Fraud


Lapping Accounts Receivable


Summary


Glossary


Index