Megan Whiteman
ACC 331 Auditing
Technology and Auditing
Today, we have technology that is far behind the scope we imagined
just a few years ago. Businesses rely heavily on this technology to operate
daily. These businesses, however, do not just rely on printers, computers,
scanners, and other simple o”ce devices, but rather information systems
and databases alike. The advances in technology have changed many
accounting processes, including the auditing process. This paper will
examine exactly how technology has changed auditing, both positively and
negatively.
Most operating businesses, if not all, rely on information technology to
record and process business transactions. For the business, IT systems can
be very bene’cial for many reasons. Computers automate many of the
controls that used to be manual. With new automated procedures, many of
the control activities that were previously done by employees are now free of
human error. Therefore, IT systems greatly reduce the amount of
misstatements while also handling a much larger amount of business
transactions, more timely and cost-e”cient.
As stated, automating business transactions reduces the amount of
misstatements. This in return, provides management with higher quality
information, quicker than would be available with manual controls. A higher
quality of information allows management to make better business decisions,
while also feeling con’dent with the information their IT system provides.
Technology has also caused changes in the department of internal
auditing. Automated controls now allow for continuous monitoring of a
company. While the business is being constantly monitored and audited,
internal auditors can be more easily involved in risk management and fraud
detection. Also, with a vaster amount of information, they can also identify
opportunities and trends that show potential for improvements, or
furthermore improved ‘nancial performance.
However, Auditors cannot rely on information just because it is
generated by a computer. Technology may have a number of bene’ts to the
