Question

One of the greatest difficulties in auditing a computerized accounting system is:

A) Data can be erased from the computer with no visible evidence.
B) Because of the lack of an audit trail, computer systems have weaker controls and more substantive testing is required.
C) Because of the uniform nature of transaction processing, computer systems have strong controls and less substantive testing is required.
D) The large dissemination of entry points into the computer system leads to weak overall reliance on information generated by a computer.

Answer 1

The greatest difficulty in auditing computerized accounting systems is that data can be erased with no visible evidence, requiring auditors to use specialized tools for substantive testing.

Step-by-step explanation:

One of the greatest difficulties in auditing a computerized accounting system is option A) Data can be erased from the computer with no visible evidence. This speaks to the challenge of the impermanence of digital records, where modifications or deletions of data may occur without obvious signs, unlike with physical documentation. As a result, auditors need to rely on sophisticated digital forensics and tracking tools to ensure the integrity and completeness of accounting records.

In dealing with these difficulties, auditors may have to perform more substantive testing than they would with a more traditional paper-based accounting system. This involves using specialized audit software and techniques to identify any unauthorized or unusual transactions that may indicate issues such as fraud or error. The reliability of computerized systems and their generated information is paramount, and these systems are designed with various controls to mitigate risks related to unauthorized data manipulation.