The visibility of information.
The potential for material misstatement.
None of the above; i.e., they are all important.
Generalized audit software.
Ability to process large volumes of transactions.
Ability to replace manual controls with computer-based controls.
Reduction in misstatements due to consistent processing of transactions.
Over-reliance on computer-generated reports.
Not place enough reliance on
Place too much reliance on
Reliance on the functioning capabilities of hardware and software.
Increased human involvement.
Loss of data due to insufficient backup.
Reduced segregation of duties.
Computer controls replace manual controls.
Higher quality information is available.
Computer-based controls provide opportunities to enhance separation of duties.
Manual controls replace automated controls.
Need for IT experienced staff
Separation of IT duties from accounting functions
Improved audit trail
Hardware and data vulnerability