Thesis Abstract

Abstract
Auditors play a critical role in ensuring the accuracy and integrity of financial information within computerized accounting systems. As organizations increasingly rely on technology for their accounting processes, auditors must adapt their skills and techniques to effectively evaluate these automated systems. This research project aims to explore the multifaceted role of auditors in computerized accounting systems, focusing on their responsibilities, challenges, and opportunities in this evolving landscape. The study will investigate the specific tasks auditors perform when auditing computerized accounting systems, including assessing internal controls, identifying risks, and testing the accuracy of financial data. By understanding the unique characteristics of computerized systems, auditors can tailor their audit approach to address potential vulnerabilities and ensure compliance with relevant regulations and standards. Furthermore, the research will examine the challenges that auditors face when auditing computerized accounting systems, such as the complexity of technology, the need for specialized IT knowledge, and the risk of cyber threats. Auditors must possess a solid understanding of both accounting principles and information technology to effectively navigate these challenges and provide valuable insights to stakeholders. In addition, the study will explore the opportunities for auditors to enhance their role in computerized accounting systems by leveraging data analytics, automation tools, and artificial intelligence. These technologies can streamline audit procedures, improve analytical capabilities, and facilitate more timely and accurate reporting. Auditors who embrace these advancements can deliver greater value to organizations and stakeholders by providing deeper insights and more efficient audits. Overall, this research project will contribute to the existing body of knowledge on the role of auditors in computerized accounting systems by providing in-depth insights into their responsibilities, challenges, and opportunities. By shedding light on the evolving nature of auditing in the digital age, this study aims to help auditors and organizations effectively navigate the complexities of computerized accounting systems and ensure the reliability and trustworthiness of financial information.

Thesis Overview

1.1 INTRODUCTION

Computer is an electric device, which accept and process data by following a set of instruction (programmers) to produce an accurate and efficient result (information). It is very systematic and computer and operates within a system theory. It has input, control processing units, output and the backing storage.

A computer may be analog; digit and hybrid computers. It can also be mainframe, mini and micro computer.

Computer has passed many generation. We are now in the fifth generation of computer known as the micro age. Computer of this generation uses artificial intelligent. It is important that the auditor, auditing in computer environment, like companies to be aware of the nature of computer accounting system uses in such companies. A computerized accounting system is a system which the electronic data processing (EDP) is used in recording, processing, retrieving and up dating the accounting records. The use of EDP in accounting system keeps a very wide rang accounting information, such a pay role, purchases and creditor ledger, sales and debtors ledger, cash book inventories, fixed assets as well as financial analysis of profit projection or forecasting cash flow and statement budgeting, capital investment and many others.

The use of computer in the accounting system ensure more efficient and reliability in processing of information since computer hardly make mistake. Unless mistake resulting from faulty data input.

In auditing organization with computerized system, the auditor responsibilities and duties do not change rather it is the means and form of processing financial that changes.

The auditor still owns the duty of skill and care in carrying out his assignment or engagement. It becomes indispensable that the auditor should acquaint himself with the particular management information system, especially the computer installation concerned.

It is also advisable that the auditor should acquire the organization chart and data flow chart of the computer installation at an early stage of the audit. This will help him to have the overall picture of the system in operated. He should concentrate on the system of internal control and internal check, and also, ensure adequate and efficient operation of the internal control