In accounting, the financial transactions are recorded, processed and presented to generate financial statements that is useful to the readers, in making decisions. It is often said that both manual and computerized accounting systems are based on the same principles, conventions and concept of accounting and auditing. However, they differ in their mechanism (devices, instruments and tools used). The manual auditor uses pen and paper, to record and document transactions. Whereas computerized auditing makes use of computers and internet, to document transactions electronically.
Auditors should adequately document the audit evidence in working papers, including the basis and extent of the planning, work performed and the findings of the audit. Documentation includes a record of:
1. The planning and preparation of the audit scope and objectives
2. The audit programme
3. The evidence collected on the basis of which conclusions are arrived at.
4. All work papers including general file pertaining to the organization and system
5. Points discussed in interviews clearly stating the topic of discussion, person interviewed, position and designation, time and place.
6. Observations as the auditor watched the performance of work. The observations may include the place and time, the reason for observation and the people involved.
7. Reports and data obtained from the system directly by the auditor or provided by the audited staff. The auditor should ensure that these reports carry the source of the report, the date and time and the conditions covered.
8. At various points in the documentation the auditor may add his comments and clarifications on the concerns, doubts and need for additional information.
The auditor should come back to these comments later and add remarks and references on how and where these were resolved.
Required
It is the practice that the report should be timely, complete, accurate, objective, convincing, and as clear and concise as the subject permits. Briefly explain what the following headings entails with relevant examples how an IT Audit report can be broadly structured under the following headings:
i. IT Audit Report.
ii. Introduction.
iii. Objectives.
iv. Scope and Methodology.
v. Audit Results.
vi. Findings.
vii. Conclusions.
viii. Recommendations.
ix. Noteworthy Management Accomplishments.
x. Limitations that were faced.
