Increasing use of sophisticated EDP systems has produced significant changes in the accounting environment. Some of these changes are the following: documents that are used to enter information into the computer may exist for only a short time or only in computer-readable form. In some computer systems, input documents may not exist at all, because information is entered directly into the system.Computer processing uniformly subjects like transactions to the same processing instructions.Many internal control procedures, once performed by separate individuals in manual systems, may be combined in systems that use computer processing.The potential for individuals to gain unauthorized access to data or assets may be greater in computerized accounting systems than in manual systems. Required: For each of the changes, discuss the impact on the internal control system and the independent audit.

EDP is the electronic data processing system which is also known Management information system. It…

Answered: For each of the changes, discuss the…

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter1: The Information System: An Accountant’s Perspective

Section: Chapter Questions

Problem 14MCQ: Which of the following statements is most accurate? a. ERP systems are commercial software packages...

See similar textbooks

Related questions

Question

Increasing use of sophisticated EDP systems has produced significant changes in the accounting environment. Some of these changes are the following:

documents that are used to enter information into the computer may exist for only a short time or only in computer-readable form. In some computer systems, input documents may not exist at all, because information is entered directly into the system.
Computer processing uniformly subjects like transactions to the same processing instructions.
Many internal control procedures, once performed by separate individuals in manual systems, may be combined in systems that use computer processing.
The potential for individuals to gain unauthorized access to data or assets may be greater in computerized accounting systems than in manual systems.

Required:

For each of the changes, discuss the impact on the internal control system and the independent audit.

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions