What is generalized audit software? What are the tasks for which an auditor would use it? What are the advantages and disadvantages of using generalized audit software?.
Q1: Give examples of risk factors for fraudulent financial reporting for each of the three fraud conditions: incentives/pressures, opportunities, and attitudes/rationalization.
Q2: What is generalized audit software? What are the tasks for which an auditor would use it? What are the advantages and disadvantages of using generalized audit software? Will this software be more appropriate for auditing your organization’s computer information system, or would it be necessary to develop customized audit software? Explain. What type of software works best for your work environment? Explain.
Q3: Will the use of IT eliminate the audit trail, making it impossible to trace individual transactions from their origin to the summary total in the financial statements? Explain. How do the American Institute of Certified Public Accountants (AICPA) and the Public Company Accounting Oversight Board (PCAOB) want the auditor to address controls in the light of the previous statement?
Chapter 11: Define fraud and distinguish between fraudulent financial reporting and misappropriation of assets.
Chapter 11: Name the three categories of inquiry and describe the purpose of each when used by an auditor to obtain additional information about a suspected fraud.