AUDITING COMPUTER PROCESSING:

USER-CONTROLLED SYSTEM

REPORTER : NOMER A. OABEL JR

 LEARNING OBJECTIVES
• TO DETERMINE THE CONTROL AND AUDIT PROBLEMS ASSOCIATED WITH THE UNIQUE HARDWARE,
SOFTWARE, PROCEDURES, AND PERSONNEL CHARACTERISTICS OF USER-CONTROLLED SYSTEMS.
• TO IDENTIFY THE DISTINGUISHING CHARACTERISTICS OF THE GENERAL CONTROLS ENVIRONMENT
FOR USER-CONTROLLED SYSTEMS.
• TO IDENTIFY THE DISTINGUISHING CHARACTERISTICS OF THE APPLICATIONS CONTROLS
ENVIRONMENT FOR USER-CONTROLLED SYSTEMS.
• TO DISCOVER WHAT IS UNIQUE ABOUT THE PERFORMANCE OF TEST OF CONTROLS WITH USER-
CONTROLLED SYSTEMS.
• TO DISCOVER WHAT IS UNIQUE ABOUT THE PERFORMANCE OF SUBSTANTIVE TESTS WITH USER-
CONTROLLED SYSTEMS
 USER-CONTROLLED SYSTEMS

• CAN BE DEFINED AS THOSE WHERE AN INFORMATION USER CONTROLS THE HARDWARE,

SOFTWARE, AND OPERATING PROCEDURES
• THESE SYSTEMS ARE TYPICALLY SMALL SYSTEMS
DIFFERENT CHARACTERISTICS IN A
USER-CONTROLLED SYSTEM
CONTROL AND AUDIT PROBLEMS
 1. HARDWARE

• REFERS TO THE PHYSICAL PARTS OF A COMPUTER AND RELATED DEVICES.

• IT IS DIVIDED IN TWO PARTS: INTERNAL AND EXTERNAL HARDWARE
• INTERNAL HARDWARE INCLUDE: MOTHERBOARD, HARD DRIVES, RAM, ETC.
• EXTERNAL HARDWARE INCLUDE: KEYBOARD, MOUSE, PRINTERS, SCANNERS,
MONITOR, SYSTEM UNIT, ETC.
 HARDWARE: CONTROL AND AUDIT PROBLEMS

• THE SIZE AND ACCESSIBILITY OF THE HARDWARE

EASILY TRANSPORTABLE
COMPONENTS MAY ALSO BE SWITCHED PRIOR TO AUDITOR’S TESTING
OF THE SYSTEM
 2. SOFTWARE

• IS A PART OF A COMPUTER SYSTEM THAT CONSISTS OF DATA OR

COMPUTER INSTRUCTIONS, IN CONTRAST TO THE PHYSICAL
HARDWARE FROM WHICH THE SYSTEM IS BUILT.
SOFTWARE: OPERATING SYSTEMS AND APPLICATION
PROGRAMS CONTROL AND AUDIT PROBLEMS

• THE USER USE INTERPRETERS INSTEAD OF COMPILERS

INTERPRETERS CAUSE CHANGE IN PROGRAMS WITHOUT DETECTION
COMPILERS MAKE IT DIFFICULT TO CHANGE THE PROGRAM
 3. PROCEDURES: CONTROL AND AUDIT PROBLEMS
• CONCENTRATION OF DUTIES IN THE HANDS OF ONE PERSON
THEN, HE OR SHE MAY
INITIATE OR AUTHORIZE TRANSACTION
PREPARE BATCH CONTROL TOTALS
ENTER TRANSACTION INTO THE COMPUTER
VERIFY THAT THE TRANSACTION TOTAL IS THE SAME WITH MANUALLY PREPARED BATCH
CONTROL TOTALS
CORRECT ERRORS
• USAGE OF ON-LINE DATA ENTRY
 4. PERSONNEL: CONTROL AND AUDIT PROBLEM

• PERSONNEL USING USER-CONTROLLED SYSTEM CAN MAKE ALL IMPORTANT

DECISIONS REGARDING WHICH CONTROLS TO ESTABLISH OR ENFORCE
CHARACTERISTICS OF GENERAL
CONTROLS ENVIRONMENT
FOR USER-CONTROLLED SYSTEMS
 GENERAL CONTROLS

• CONTROLS OVER:
• DATA CENTER AND NETWORK OPERATIONS
• SYSTEM SOFTWARE ACQUISITION, CHANGE AND MAINTENANCE
• PROGRAM CHANGE
• ACCESS SECURITY
• APPLICATION SYSTEM ACQUISITION, DEVELOPMENT AND MAINTENANCE (ISA 315 –
REDRAFTED)
 CONT. GENERAL CONTROLS

• ORGANIZATION CONTROLS
• ACCESS TO THE COMPUTERS
• PERSONNEL PRACTICES
• STANDARD OPERATING PROCEDURES
• FILE BACK UP AND
• SYSTEM DEVELOPMENT AND RECONSTRUCTION
DOCUMENTATION CONTROLS
• HARDWARE AND SYSTEM SOFTWARE • ADMINISTRATIVE CONTROLS
CONTROLS
• SYSTEM SECURITY CONTROLS • IMPLEMENTATION CONTROLS
• ACCESS TO PROGRAMS AND FILES
 THANK YOU!
THE NEXT TOPICS WILL BE DISCUSSED BY ANGELO B. MANZANO