- 15 Marks
Describe how audit software can assist in auditing revenue and receivables at Brighton Components. Discuss external auditor reliance on internal audit’s use of embedded software at Brighton Components.
Question
The audit manager of Brighton Components has decided that audit software can be used effectively in the audit of revenue and trade receivables. He has discussed this with the firm’s computer audit department and with the finance director of Brighton Components and this approach has been agreed as a feasible one. Furthermore, the finance director has asked his internal audit function to investigate the possibility of installing embedded software to help the external auditors in their work.
Required:
(a) Describe, giving examples, how audit software in general could assist the audit firm in their audit of revenue and receivables.
(b) Discuss the extent to which the external auditor could rely on the results of the internal auditor’s use of embedded software.
Find Related Questions by Tags, levels, etc.
- Tags: Audit Evidence, Auditor Reliance, Embedded Software, Internal Audit
- Level: Level 2
- Topic: Audit Evidence