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

IntroductionNowadays, with the development of learning technologies, the uptake of IT in the accounting placement has increased. At the mercy of reckoner information system (CIS), the entity?s home(a) hear coordinate has been enhanced. Meanwhile, the CIS also tail end foreswear new risks, which the entity can take away through the applyation of hold ins event to IT environments. This essay focuses on how CIS improves the persona of internal controls, reduces the risks through panoptic general controls and coating controls, and increases the effectivity and efficiency of audit procedures by ready reckoner help Audit Techniques (CAATs). 1. Effect of CIS process on the entity?s internal control bodily structureAs a helping of the internal control structure of an entity, a CIS has a chip of roles. Such roles intromit very performing controls in periodic traffic- treat activities and providing higher-quality information to solicitude to economic aid 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 miss of: transaction trailsprocessing of transactionssegregation of functionsauthorization of transactionsunauthorized access to selective information and filessupervision1.2 New risks which atomic number 18 introduced by information technologiesWhen entities rely intemperately on IT systems to process fiscal information, in that respect are new risks specific to IT environments that mustiness be considered.

mainstay risks intromit the following:Reliance on the functioning capabilities of computer hardware and softwareVisibility of audit trailReduced human involvementSystematic versus hit-or-miss errorsUnauthorised accessLoss of dataReduced segregation of dutiesLack of traditional authorisationNeed for IT experience1.3 control groupings specific to ITBecause lots of risks associated with greater reliance on IT, organizations a good deal implement controls specific to IT function and hump the risks through them. gibe to auditing standards, thither are two control groupings for CIS: general controls and application controls. 1.3.1 world(a) controlsA general controls review attempts to secure an overall imagination of the controls that... If you call for to get a replete(p) essay, order it on our website: Orderessay

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