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    The document compares the internal controls of manual and computerized accounting systems. For manual systems, internal controls rely on physical documentation and backups that can be lost or destroyed, while computerized systems allow for easier documentation storage and security. Computerized systems are also faster, allowing automatic updates across reports. However, some small businesses are still well-suited to manual systems with simple needs. When auditing financial statements in a computerized system, the document suggests using computer-assisted audit techniques or "CAATs" like test data to efficiently evaluate internal controls and compare computer and manual results.

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    Assignment

    Uploaded by

    Sandy
    127 views1 page
    The document compares the internal controls of manual and computerized accounting systems. For manual systems, internal controls rely on physical documentation and backups that can be lost or destroyed, while computerized systems allow for easier documentation storage and security. Computerized systems are also faster, allowing automatic updates across reports. However, some small businesses are still well-suited to manual systems with simple needs. When auditing financial statements in a computerized system, the document suggests using computer-assisted audit techniques or "CAATs" like test data to efficiently evaluate internal controls and compare computer and manual results.

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    The document compares the internal controls of manual and computerized accounting systems. For manual systems, internal controls rely on physical documentation and backups that can be lost or destroyed, while computerized systems allow for easier documentation storage and security. Computerized systems are also faster, allowing automatic updates across reports. However, some small businesses are still well-suited to manual systems with simple needs. When auditing financial statements in a computerized system, the document suggests using computer-assisted audit techniques or "CAATs" like test data to efficiently evaluate internal controls and compare computer and manual results.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    127 views1 page

    Assignment

    Uploaded by

    Sandy
    The document compares the internal controls of manual and computerized accounting systems. For manual systems, internal controls rely on physical documentation and backups that can be lost or destroyed, while computerized systems allow for easier documentation storage and security. Computerized systems are also faster, allowing automatic updates across reports. However, some small businesses are still well-suited to manual systems with simple needs. When auditing financial statements in a computerized system, the document suggests using computer-assisted audit techniques or "CAATs" like test data to efficiently evaluate internal controls and compare computer and manual results.

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    © All Rights Reserved
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    of 1

    1.

    Explain your understanding of the internal control in a manual accounting system environment in
    comparison with the internal control in a computerized environment.

    Manual accounting systems have existed for ages and started up maintaining records of tariffs,
    donations, and other inventories. Computerized accounting systems are almost two eras old, but they
    have already revolutionized the accounting profession to the degree where it's remarkable to discover a
    company that doesn't employ computerized accounting in some aspect or another.

    The following are my perception of internal control in a manual accounting system environment in
    comparison with internal control in a computerized environment. First, in terms of pace, computerized
    accounting systems are extensively faster than manual ones. The period expected for data admission
    may be similar in the two methods, but a computerized system conserves a significant time when
    estimating outcomes. A computer can induce summaries promptly, and you can alter parameters by just
    clicking and assigning choices relatively than putting in whole sections of amounts. Second, in terms of
    clearness, manual accounting systems are maintained in ledger books, which are anyhow accessible to
    utilize and view. Moreover, physical records can be susceptible as well and can be destroyed or lost. Yes,
    we can photocopy physical records to maintain a backup of types, but the method of insuring a digital
    file is largely simpler. Third, in terms of unsophistication, some manual systems are refined and some
    computerized systems are natural, manual systems entrust themselves nicely to companies whose
    computation requirements are fundamental and straightforward. Fourth, in manual accounting, an
    individual stays implicated all the time, with the accounts, to enter and revise transactions, which is
    excessively repetitious and time-consuming. While, in computerized accounting, once the transaction is
    entered, it is automatically revised in all the reports to which it associates, and accordingly, the
    procedure is comparatively timely. Lastly, one of the superiorities of computerized accounting which
    manual accounting needs is that in manual accounting there is no means to insure all the entries and
    financial reports, but in computerized accounting, the accounting histories can be conserved and
    guaranteed.

    2. Imagine yourself auditing financial statements in a CIS environment. How will you perform your
    testing and documentation? (List your takeaways in the lecture).

    I visualize myself conducting test data, a one of a kind of computer assisted audit techniques, or simply
    called 'CAATs'. I decided to enact it because it is straightforward and I am barely familiar with the
    process. The test data was constructed to assess the effectiveness of the internal control systems which
    are integrated into the client's computer program, thus correlating the findings between the computer
    and through a manual process.

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