Technology Changes the Form and Competence of Audit Evidence

Document Type

Article

Publication Date

1-2007

Abstract

The increasing prevalence of complex computer information systems and electronic data interchanges has made most business transactions electronic in nature. The auditing profession has reacted to advances in technology and e-commerce by issuing new guidance. The Auditing Standards Board issued Statement on Auditing Standards 80 in 1996 to guide accountants when auditing the financial statements of an entity where considerable information is transmitted, processed, maintained, or accessed electronically. But as businesses become increasingly complex, the auditing profession must ensure that it obtains sufficient competent evidential matter to support financial statement assertions. Thus, documentary evidence should be reviewed with greater diligence and increased professional skepticism. Auditors should perform additional tests to complement traditional audit procedures and exercise increased professional skepticism regarding audit evidence. Auditors must continue to be cognizant of the requirements in the recently issued auditing literature when financial information is electronic in nature.

Comments

Copyright 2007 New York State Society of Certified Public Accountants

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Publication Title

The CPA Journal

Published Citation

Caster, Paul and Dino Verardo. “Technology Changes the Form and Competence of Audit Evidence” The CPA Journal (January 2007), 77(1), pp. 68 – 70.

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