Auditing Tests
Content:
Computer information systems - internal control
1. Audit Evidence
2. Test of controls
3. Substantive procedures
4. Substantive procedures – CAATs
, Revision Question 1: Test of controls
Orders for books are placed electronically by Books Ltd buying clerks on sequenced
pre-numbered purchase orders. Orders may only be placed with a supplier that
appears on the approved supplier’s list. When capturing the electronic purchase
orders, the buying clerks choose the applicable supplier from a drop down menu
before capturing the required quantities of books, book titles and ISBN numbers.
An error message appears on the computer screen if all of the required fields are
not captured. The computer automatically completes the prices for the ordered
books on the purchase order. The prices are extracted from the electronic supplier
price list which is updated and approved by the CFO on an annual basis. The
acquisitions manager approves all purchase orders electronically by entering a
unique username and password. Passwords consist of at least eight characters with
a variation of alphabetic characters, numerical digits and symbols.
Required:
Describe the test of controls you would perform to obtain audit evidence about the
validity and accuracy of orders placed. (8 marks)
1. Inspect a sample of purchase orders to confirm whether the forms are issued in
sequence and test the sequencing in order to identify duplicate order numbers. (1)
2. Inspect a sample of purchase orders and compare the supplier on the purchase
order with the suppliers that appear on the list of approved suppliers. (1)
3. Attempt to override the selection of the supplier by not using the drop down
menu function and confirm that this is rejected. (1)
4. Attempt to capture a purchase order but leave out one of the required fields
(quantity, book titles or ISBN number) and inspect that an error message appears
on the computer screen. (1)
5. When completing the fields on the purchase order, attempt to, for example (½
marks each):
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