Joined: 01 Apr 2009 Location: United States
Online Status: Offline Posts: 413
Posted: 03 Aug 2009 at 21:44 | IP Logged
Question From Becker:
Which of the following types of evidence would an auditor
most likely examine to determine whether internal controls are operating as
designed?
Confirmations of receivables verifying account balances
Letters of representation corroborating inventory pricing
Attorneys’ responses to the auditor’s inquiries
Client record documenting the use of EDP programs.
Answer from Becker:
Client record documenting the use of EDP programs.
I get that the first three are substantive procedures and do not provide assurance as to the effective operation of internal controls. How do records documenting the use of EDP programs show effective operation of IC? What exactly is an EDP system?
Joined: 19 Jun 2009
Online Status: Offline Posts: 106
Posted: 03 Aug 2009 at 23:19 | IP Logged
You can find number of resources on EDP (Electronic Data
Processing)..you may like to check out this particular
definition http://www.bestpricecomputers.co.uk/glossary/electronic-
data-processing.htm
EDP is a very generic term probably used more often in
80's and 90's but not so much now. To cut short...for
this question I would just associate documenting EDP
programs as a good house keeping in IT env. It is
client's responsibility to document the use of these IT
programs which ones are being active which ones are not
running and which programs are disabled/canceled etc.,
Joined: 30 May 2009 Location: United States
Online Status: Offline Posts: 655
Posted: 05 Aug 2009 at 12:32 | IP Logged
I agree. Part of a strong IC is documenting the changes in the IT programs. Thats what answer D is getting at.
EDP used to be the way companies would link one IT program to another, or customize IT programs. Its really old verbiage - have not heard it since the 80's/early 90's.
__________________ Becker
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