Aud5 Chapter-26
Aud5 Chapter-26
THE C OMPUTER
ENVIRONMENT
CHAPTER 26
• Describe an • Discuss the • Specify major
electronic data impact of types of computer
processing system computers on fraud.
and unique accounti ng
characteristi cs of systems.
specifi c EDP
systems.
INTRODUCTION
T O A N E L E C T R O N I C D ATA P R O C E S S I N G S Y S T E M
Control unit
• Regulates the activities of the other units and devices by retrieving
machine language instructions from the memory and then interpreting the
instructions
Input device
• Permits the computer to receive both data and instructions
Output device
• Returns information from the computer to user
INTRODUCTION
T O A N E L E C T R O N I C D ATA P R O C E S S I N G S Y S T E M
Important elements:
• Operating system – a highly complex set of programs designed to:
1. Serve as a means of communication between the computer hardware
and human operator.
2. Schedule, load, initiate, and supervise the execution of programs.
3. Initiate and control input and output operations.
4. Manage and control compilers and utility programs
• Utilities – a program or group of programs designed to perform commonly
encountered data handling functions
INTRODUCTION
T O A N E L E C T R O N I C D ATA P R O C E S S I N G S Y S T E M
1. Batch Processing
2. Direct Random Access Processing
3. Data Base Processing
4. Small Computer Environments
5. Service Bureau/ Center
6. Distributed Systems
UNIQUE CHARACTERISTICS
OF SPECIFIC EDP SYSTEMS
Batch Processing
• A common EDP System
• Assumed to be used if the question does not specify
the EDP system
• Key points:
- Transactions flow through the system in batches
(groups of like transactions)
- If CRTs are used in batch processing, it may
appear to the user that changes are occurring
immediately to the master file
- Batch processing normally leaves a relatively easy
to follow audit trail
UNIQUE CHARACTERISTICS
OF SPECIFIC EDP SYSTEMS
Distributed Systems
• Represent a network of remote computer sites each having a small computer
connected to the main
• Reduce the load on the main computer system
• Faster turnaround of information
• Controls in this system include
a. Audit unit – each remote location should be well controlled and audited as a
separate unit to verify the integrity of the data processed
b. Segregation – compensating controls over each location should exist as users
may have both authorization and recording functions
c. Uniform standards – a set of uniform standard should be established
IMPACTS OF COMPUTERS
ON ACCOUNTING SYSTEMS
1. Salami Technique
2. Trojan Horse
3. Virus Programs
4. Trapdoors
MAJOR TYPES
OF COMPUTER FRAUD
THANK
YOU!