An Analysis of Computerized Auditing's Impact on Audit Risks in Jordan

This report investigates the impact of computerized auditing on audit risks in Jordan, focusing on the role of various training programs and accounting information systems within Jordanian audit firms. The study employs a descriptive statistical method, surveying a random sample of 50 accountants. Findings reveal that the software used in computerized audits enhances financial performance, and well-trained staff are crucial for effective accounting and IT system operation. The research highlights the risk-reducing capabilities of accounting information systems used by top audit firms in Jordan. The report recommends providing comprehensive protection programs for computerized audit firms and supporting auditor training to manage emerging risks effectively. Keywords include audit risks, computerized auditing, and audit programs.

The impact of computerized auditing in reducing audit risks in Jordan
Abstract: Main focus of this study is to find out the significance of the variety of training
programs for employees, as well as analyzing importance of accounting information systems
within the computerized audit programs in reducing audit risks that associated with IT audit in
Jordanian audit firms. The descriptive statistical method was used, a random sample of sector
audit firms was selected and the sample consisted of (50), an accountant, had been randomly
recruited to fill the questionnaire. The results indicated that the software used in the
computerized audit ensure good financial performance, and the staff were well trained and fully
qualified for working in the accounting and IT system that is related to the audit it found that
the accounting information systems used in top ten Jordanian audit firms reduce risks relevant
for accounting and ensure good performance. The study recommends the necessity of working
to provide extensive protection programs for computerized audit firms, in addition to work on
supporting staff training courses that increase the expertise of auditors to deal with the risks
occurring.
Keywords:Audit Risks, Computerized Auditing, Audit Programs.
1. INTRODUCTION
The rapid development of information technology and accessibility to this information has led
to the increasing number of users of this technology, either from individuals or companies. The
cravings of the Companies to acquire and apply the computerized systems and programs
contributed effectively in the effective deployment of information systems. The most essential
field that has been impacted through this transform is the accounting, where the second half of
the remaining century witnessed a rapid transition in the direction of using automated
accounting statistics structures which lead to robust development in the performance of the
clerical and accounting related task especially in the process of computerized auditing.
But with the use of advanced technology exposure in the direction of different kinds of risks
related to make Suring the safety as well as security of computerized accounting information
systems. Additionally, the huge development within IT is not accompanied through a
comparable development within the competencies as well as capacities of the human users of
this technology. That creates a kind of risks which bound the efficiency and competence of the
make use of these techniques (Al-Akra, Abdel-Qader and Billah, 2016).
These risks or uncertainty need from the organizations to be extra conscious of the possible
safety risks that intimidate the safety of their systems, the competence and efficiency of the
software used in the process of computerized auditing, avoid these risks as well as decrease
from its bad impacts as much as possible.
The IT infrastructure that is developed by any company plays a vital role in assisting in
transforming accounting operations. Information technology has an important and significant
role in process of gathering, using and storing useful information that is abridged and reported
within financial reports. Large numbers of business are becoming progressively more relay on
information technology by means of such components at the same time as fully included (IS) As
well as the electronic document management flattering more common. It is commonly observed
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that during processing of accounting information employees make a lot of mistakes. In order to
avoid such kind of mistakes steps can be taken like IT infra can be evolved which will assist
managers in improving accuracy in accounting operations, transaction processing speed also
increase which save time and energy. Overall, it can be said that IT system help firm in multiple
ways. In contrast, There are numerous kind of risk that are mainly related with information
technology such as loss of computer assets, maximized risk of fraud, mistaken record keeping,
competitive disadvantages if the incorrect information technology is chosen, loss of information,
business disruption and privacy violations. (Alhosbanand Al-Sharairi, 2017).
1.1 Study Problem
The fast evolution of in IT which uses computers has its impact on accounting as well as
management systems of an organization. This was followed by a essential alteration within the
research methodology, methods, systems auditing, internal and external oversight, this has also
affected the personal configuration and training of people compared with what the matter was
under the traditional way of manual data entry, (Alqtish, Alqirem and Kasem, 2018). In Jordan
there is a gap in research bodies that investigate the impact of computerized auditing in
reducing audit risks among audit firms.
In this research we will try to answer the following questions.
1. What are the types of computerized auditing programs that are used in Jordanian audit
firms?
2. What is the importance of employees training on computerized auditing programs in
Jordanian audit firms?
3. What is the impact of using computerized auditing programs in reducing audit risks?
1.2 Study Objectives
Computerized audit that is being prepared according to certain accounting policies “as defined
by the ICAS” aims to help the auditor to express his opinion about it.
The research aims to:
 Identify types of computerized auditing programs that are used in Jordanian audit firms.
 Identify the importance of employees training on computerized auditing program in
Jordanian audit firms.
 Identify the impact of using computerized audit programs in reducing audit risks in
Jordanian audit firms.
1.3 Study Hypotheses
In light of the problem and objectives of research, the following hypotheses were formulated:
H01: There is no statistically important relationship between using computerized auditing
program types and reducing audit risks.
H02: There is no statistically significant relationship between employees training on the
computerized audit programs and reducing audit risks.
H03: There is no statistically significant relationship between using computerized audit
programs and reducing audit risks.
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2. THEORETICAL FRAMEWORK AND PREVIOUS STUDIES
The ICT is very important in modern business organizations in support of achieving short as well
as long term objectives. (Alqudah, Amran and Hassan, 2019), Stated that the technology has
been a significant tool in almost all human activity. The influence of Information technology
within business organization has developed exponentially within recent years, varying the
procedure of audit and outputting in both challenging and opportunities for auditors.
A study was conducted by (Al-Rahamneh, 2016), studied the effect of automated accounting
systems over audit risk management within public organizations in Kisumu County. Evolution in
information technology has had a dramatic impact over accounting facts machine. At the same
time as computer systems end up lesser, faster, easier in the direction of the use as well as
much less comfortable, the computerization of accounting function develops all the way
through the entire financial carrier sector. The result is massive, at the same time as indicated
via the coefficient of audit threat administration is significantly associated to evaluation and
identification of hazard, monitoring along with assessment manage awareness, attitude, belief
and generation. The tested system risk factors recognized essential areas of records device
hazard to be the risk of breaches within system security as well as the danger that the records
provided by means of the device is inadequate and the systems nature threat components
identified linked through the ones risk, in order to address systems risks components, auditors
require to analysis their ERP methods.
2.1 Information systems auditing
IT function is accountable for scheming, developing and keeping many of controls on business
processes of an organization.
IT has a significant role in gathering, processing as well as storing information that is described
and reported within financial statements (Alslihat and et. al. 2018).
2.2 IT Auditing
Information technology audit refers to the process of collecting as well as evaluating information
based on which an individual can estimate the performance of information technology systems,
i.e., to find out whether the information systems operations within the function of protecting
the property and keep the integrity of data, (Al-Tarawneh, Weshahand Humeedat, 2020)
Although there is no ordinary worldwide description of information system audit (Hassan &
Marston, 2019), has explained information system audit is introduced to the process under
which evidence are collected and evaluated to great extent to identify whether computer
system (IS) protect data and rightly make use of available resource.
(Alzoubi, 2018), has defined IS audit as “it is the procedure whereby controls of the entire
system are evaluated in proper manner. In this process reporting of efficiency level system
effectiveness and practices is done to communicate about data integrity. In the audit reporting
is also done about policy and rules in respect to use of system.” (Amoush, 2019), As an output,
business risk maximize. IT auditing is mainly needed in the company to ensure that IT system is
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secure and there are sufficient internal controls and make certain that assets managed by way
of those structures are appropriately safeguarded. The assessment of IS and IT by auditors has
generated the time period IT auditing. IT auditing is the evaluation of IT, practices, and
operations to assure the integrity of an entity’s data. Such assessment can include evaluation of
the performance, effectiveness, and economy of pc-primarily based practices. This entails the
usage of the laptop as an audit 20 device. The assessment need to also decide the adequacy of
internal controls within the IT environment to assure legitimate, dependable, and relaxed
records services. The Computer auditor’s evaluation of systems, practices, and operations may
include one or both of the following:
- Evaluation of entire control system that exists within IT environment of the company and to
ensure legality, consistency, and safety of data.
- Evaluate capability of the company IT system in monetary terms (Bshayreh, Tawaha and Al-
Khasawneh, 2019).
2.3 Objectives of IT Auditing
One of the main objectives of information technology auditing is to evaluate whether or not an
information System is meeting to the stated objectives of company and to make sure that the
system is not developing an intolerable level of hazard for the organizations. The terms
“attestation,” “audit,” and “control” typically point out same thing, however, context wise
meaning of these three become different. Thus, every time they can be used interchangeably.
One of the major advantages of using IT audit is that by using it one with full confidence can
ensure that IT system is working efficiently and effectively, in order to identify whether IT
system work efficiently one check whether inputs are generating accurate outputs correctly. It
can be ensured that only one that has permission can access IT system (Hussin, Saleh and Al-
smady, 2019).
IT auditing feature is essentially a support function for the attainment of conventional audit
targets. As has been described in advance, that IT auditing is the entire procedure where data is
first gathered and then it is evaluated in proper manner to ensure data integrity. If data will be
accurate then in that case more accurately decisions can be made by the managers at the
workplace.
2.4 The Need for the IT Audit Function
Computer technology is an essential and important for an organization because it will help them
in their financial transaction easily. With the elevated reliance on computer systems to carry out
each day transactions and with the higher dangers related to new generation, control wishes
assurance that the controls governing its pc operations are good enough. The Top Ten Reasons
for the Start Up of IT Auditing:
1. Auditing in the order of the computer was flattering unacceptable for the reason of
information reliance.
2. Dependence on controls was flattering extremely questionable.
3. Financial organizations were losing cash because of creative programming.
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4. Payroll databases might not be depended on for accurateness because of sophisticated
Programmers.
5. The data security might no longer be compulsory effectively.
6. Advancements occurred within technology.
7. Internal networks were being accessed by employees’ desktop computers.
8. Personal computers became easy to get for office as well as home use.
9. Large amounts of information needed advanced software programs in the direction of
audit, known as CAATs.
The tremendous expansion of corporate hackers, moreover internal or external, necessary the
need for IT auditors, (Lowe,Bierstaker, Janvrin and Jenkins, 2018).
2.5 The structure of an IT Audit
The information technology Audit is usually classified into 3 parts which are audit planning,
substantive testing and test of control. These parts will be explained as below:
2.6 Audit planning
The primary step within information technology audit is known as auditing planning. Before the
assessor conduct IT audit plan, it must hold meeting with the company officers and must try to
find out information about client business so that in better way IT audit can be done. Factor that
needs to be taken into account is that core portion this phase of audit is the analysis of audit
risk. In this stage auditor also try to gather other facts and details so that it can conduct in better
way at the workplace. Analysis of risk during audit process helps one in getting background of
the company's practices, policies and structure. At this phase of audit, the inspector also
determines the financially important applications as well as attempts to know the control on the
primary.
There are some tools and techniques of gathering information about the topic are
questionnaires, interview, observation, focus group, modeling etc. all these are effective and
important but for collecting data about the existing research topic, questionnaire will be applied
by investigator because it will support them in collection and analisation of reliable data about
the topic.
2.7 Test of controls
Main purpose of test of control stage is to find out whether sufficient interior controls are within
the place as well as functioning correctly. In order to attain this, the assessor performs different
number of tests of controls. The confirmation collecting tool followed at this stage may cover
both specialized computer audit techniques and manual technique.
Auditor after completion of entire testing must prepare a conclusion about the control phase. In
other words, it can be said that, the auditor should evaluate the quality of the internal controls.
2.8 Substantive Testing
The third segment of the audit method focuses on the monetary data. This involved a detailed
investigation of particular account balances and transaction thru what are known as major
assessments. Some sizeable exams are bodily, labor in depth sports consisting of counting
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coins, counting inventories within the warehouse, and verifying the life of inventory certificates
in a safe. In an IT surroundings, the records had to carry out sizeable checks (which include
account stability and name and addresses of individual customers) is contained in information
files that often need to be extracted the use of (CAATTs) software.
2.9 Assessing Audit risk and designing tests of controls
One of the main risk associated with the audit outcome is that there are chances that auditor
may provide a incorrect view on the financial statements that are prepared by an organization
accountant. Auditor may state that materials are misstated. Material misstatement might be
caused by irregularities or errors or both. Errors are accidental errors. Irregularities are
intentional misrepresentations to deceive customers of the accounting information. Main
purpose behind such act is to maintain confidence of stakeholders on the company. Auditors
always try or make an attempt to reduce audit risk by carrying out multiple tests at the
workplace (Lowe, Reckers and Sauciuc, 2018).
2.10 Audit Risk Components
Audit risk: The risk that the examiner may innocently fail in the direction of modifies his or her
view on financial account that is significantly misstated. By the side of the account balance
otherwise class of transactions plane, it includes of the material misstatement risk, and
detection risk. There are some components of risks which will be described as below:
1. Planned detection risk
It is the sort of risk where there is probability that auditor may fail to find out anything wrong in
the accounts. Small mistakes if remain untracked then it is not a big issue but if any big mistake
remain unidentified then in that mistake made by auditor may be considered intolerable. It is
well known fact that PDR fixes the amount of substantial evidence that the auditor plan to
accumulate, inversely with the scale of planned detection risk. It is commonly assumed that in
case if PDR decline then in that case one requires collecting more evidence to achieve reduced
planned risks, (Mansour, 2016).
2. Inherent risk
It is usually stated that inherent risk introduces to the situation where probability of loss comes
in existence before considering any risk-reducing factors. During process of evaluation of
inherent risk, experienced professional need to find out taken into account variety of risks as
well as elements that reflect that a risk exists. Thus, auditor needs to be more familiar with the
company and its business details, (McCamley, Vivantiand Edirippulige, 2019).
3. Control Risk
It is very important risk and, in this control, risk evaluate auditor assessment if presentation of
any wrong fact in the financial statements cross a limit of threshold level in a segment and
whether it can be distinguished on a well-timed by the internal control of clients. In this auditor
always assume that internal control of the firm is very week and unproductive to stop or detect
misstatements.
4. Acceptable audit risk
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Is a degree of the way inclined the auditors is to simply accept that the monetary
announcement May be materially misstated after the audit is completed and an unqualified
opinion has been issued? When auditors decide on lower perfect audit threat, they need to
ensure that the announcement of financial position, announcement of income and statement of
cash flows aren't material misstated (Srour and Yorke-Smith, 2016).
3. METHODOLOGY
There are basically two approaches of scientific research methods which are used as a
methodology of this study, the first one is the Descriptive and analytical approach, and this
approach has been used for the literature review to explore the impact of computerized
auditing programs in reducing audit risks in Jordanian audit firms. The second Research
Methodology Field has been used to cover the sensible side of this study, through trying out
the validity of hypotheses of the have a look at, and answering questions, and drawing their
effects out of the questionnaire that changed into organized for the studies examine by way of
considering steps of scientific norms.
3.1 Study Population
The study population consisted of all accountants in the top ten audit firms in Jordan.
3.2 Study Sample
Within an investigation, random sampling method has been followed by researcher because it
not takes more time. It has been the study sample of accountants in the top ten audit firms in
Jordan, the researcher distributed (60) questionnaire, and after retrieving questionnaires were
excluded (10) questionnaires for non-suitability for the reason of statistical analysis, the
reserach sample final entirely (50) questionnaire, and the Table (1) shows the demographic
distribution of the study sample.
Table (1) Demographic distribution of the study sample
Variable Repetition Percentage
Sex
Male 34 68%
Female 16 32%
Age
18 - 25 20 40%
26 - 35 18 36%
36 - 45 7 14%
46 & above 5 10$
Academic Qualification
High School *** ***
Diploma 3 4%
Bachelor 35 70%
Master 13 26%
Total 50 100%
3.3 Study Tool
There are two types of study tool which have been explained as below:
First Part: Demographic Variables, including (Gender, Age, Academic qualification).
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Second Part: including:
1. First Axis: Types of software.
2. Second Axis: Training programs.
3. Third Axis: Computerized accounting information systems.
3.4 Reliability of study Tool
Questionnaire refers to the most essential and useful tool of measuring reliability of data.
Within an investigation questionnaire has been applied by investigator for collecting reliable
information about the current study. The questionnaire was submitted to arbitrator (Supervisor
of the research), to confirm the honesty of its paragraphs, and to obtain his view, and re-
wording of several paragraphs, and create the necessary modifications, to cautiously strike a
weight quantity among the data of resolution within paragraphs, and as regarding it, which
confirms the certainty of the tool (Salihu and Berisha-Hoti, 2019).
3.5 Stability of study Tool
In order to calculate and measure stability of research instrument, the investigator followed the
equation of internal consistency with the use of test Cronbach's alpha that is displayed within
Table (2) the test output where the values of Cronbach alpha intended for all variables of an
investigation and recognition of usually higher (60%) that is satisfactory within investigation and
studies.
3.6 Statistical Processing
In order to answer all questions within the research, analytical and descriptive methods have
been used by researcher with the use of SPSS. It includes standard descriptive statistics
(Descriptive Statistic Measure), to explain the uniqueness of the sample relaying on the,
percentages, frequencies and to respond the research questions, standard deviations, means as
and Cronbach Alpha Test will be applied by researcher to make sure the stability of investigation
tool as well as testing of One Sample T-test.
4. TESTING HYOPTHESES
H01: There is no statistically significant relationship between using computerized auditing
program types and reducing audit risks.
To answer the first hypothesis was extracted averages and standard deviations to identify the
responses of the sample of the study about the importance of the types of programs that are
used in the computerized audit, and Table (2) illustrates that.
Table (2) The arithmetic means, standard deviations and the materiality for the first axis (the
types of programs that are used in the computerized audit).
No Paragraph Means Standard
deviation
Relative
Important
Rank
2
The computerized programs to save work
on a daily basis. 4.22 0.86 High 1
1
Modern computerized programs used in
computerized accounting audit. 4.16 1.02 High 2
5
The process input the wrong threat to
the computerized audit results. 4.04 1.24 High 3
4
Programs are exposed to the entry of
viruses pose a threat to the accounting 4.00 1.32 High 4
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information.
3
Information can be retrieved accurately
in the event of loss. 3.06 1.53 Medium 5
General average 3.90 1.20 High
Seen from the Table (2) that the averages for this axis (the types of programs that are used in
auditing computerized), ranged between (4.22 and 3.06), where he earned axis on the
arithmetic average total (3.90), a high level, and has received Paragraph No. (2) the highest
average account where the (4.22), and the standard deviation (0.86), a high level, which
stipulates paragraph (the computerized programs to save work on a daily basis), and in second
place came paragraph (1) with a mean (4.16) and standard deviation (1.02), a high level, which
stipulates that paragraph (a modern computerized programs used in computerized accounting
audit ), On the contrary the number of paragraph (3) in the last place where won the arithmetic
average (3.06), and a standard deviation (1.53), a mid-level, which stipulates that paragraph
(information can be retrieved accurately in the event of loss).This explains that the software
used in the computerized audit and ensure good financial performance well.
H02: There is no statistically significant relationship between employees training on the
computerized audit programs and reducing audit risks.
To answer the second hypothesis descriptive statistics tools used are averages and standard
deviations which help to evaluate results of the research study that is about the importance of
the types of training programs for staff in the computerized audit program in reducing audit
risks in Jordanian audit firms, and Table 3 illustrates that.
Table (3): The arithmetic means, standard deviations and the materiality for the second axis
(training programs).
No Paragraph Means Standard
deviation
Relative
Important
Rank
6
Hold special training courses to programs
that are used in the computerized audit.
4.44 0.70 High 1
7
Coaching staff commensurate with their
qualifications and their ability to handle
errors occurring in computerized financial
information.
4.40 0.88 High 2
8
Staff training to save programs from any
computer breakthroughs 3.96 1.09 High 3
9
Work on the protection of computer
systems for the computerized audit. 3.92 1.12 High 4
12
Training programs provide accountants
with sufficient information to lead work
well.
3.81 1.16 High 5
11
Training courses to help solve problems
with accountants. 3.75 1.20 High 6
10
Training courses serve the desired goals,
used in computerized audit. 3.57 1.29 High 7
General average 3.98 1.06 High
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Table No. (3) showed that the averages for this axis (training programs), ranged between (4.44
and 3.57), where he earned axis on the arithmetic average total (3.98), a high level, and has
received Paragraph (6) on top arithmetic average reaching (4.44), and the standard deviation
(0.70), a high level, which stipulates paragraph (holding training courses for the programs that
are used in auditing computerized), and in second place came paragraph (7) with a mean (4.40)
and deviation standard (0.88), a high level also, which stipulates that paragraph (coaching staff
commensurate with their qualifications and their ability to handle errors occurring in
computerized financial information). Came in ranked last paragraph (10) reached a mean (3.57),
and a standard deviation (1.29), where the Paragraph (training courses serve the desired goals,
used in computerized audit). This explains that the staff are well trained and fully qualified for
the work of the accounting and auditing computerized ensuring impress.
H03: There is no statistically significant relationship between using computerized audit
programs and reducing audit risks.
To answer the third hypothesis descriptive statistics tools used are averages and standard
deviations which help to evaluate results of the research study that is regarding the significance
of the role of IS in computerized accounting audit computerized financial institutions and
companies of Jordan, and Table (4) illustrates that.
Table (4): The arithmetic means, standard deviations and the materiality for the third axis
(Accounting Information Systems)
No Paragraph Means Standard
deviation
Relative
Important
Rank
14
Accounting information systems are
connected quickly with accounting and
information technology.
4.34 0.77 High 1
15
Many of the traditional functions include
accounting systems require a mixture of
new technological knowledge and
accounting.
4.20 0.95 High 2
16
Systems should be able to apply software
development and improvement
produced in accounting.
3.64 1.14 High 3
13
Define pages and tables and specific
accounting software, and explained and
integration application of information
technology.
3.34 1.12 Medium 4
17
Facilitate the provision of accounting
information systems in the centers and
institutions concerned with the
accounting audit.
3.31 1.13 Medium 5
18
Easy to deal with accounting information
systems. 3.29 1.15 Medium 6
19
Speed in the application of accounting
information systems. 3.01 1.25 Medium 7
Accounting information systems interfere
with each other with respect to the
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21
accounting programs in terms of tariffs.
2.29 1.35 Low 8
20
Accounting information systems are
available in abundance in the local
markets.
2.25 1.40 Low 9
General average 3.30 1.14 Medium
Table No. (4) showed that the averages for this axis (Accounting Information Systems), ranged
between (4.34 and 2.25), where he earned axis on the arithmetic average total (3.30), a mid-
level, and has received Paragraph (14) on the highest average account where the (4.34), and the
standard deviation (0.77), a high level, which stipulates paragraph (accounting information
systems are connected quickly with accounting and information technologies), and in second
place came paragraph (15) with a mean (4.20) the standard deviation (0.95), a high level also,
which stipulates that paragraph (many of the traditional functions include accounting systems
require a mixture of new technological knowledge and accounting) .In contrast, came in ranked
last paragraph number (20) came in as the last award was the arithmetic average (2.25), and a
standard deviation (1.40), where the Paragraph (easy to deal with accounting information
systems) .This explains that the accounting information systems used in financial companies
Jordanian reduce risks and accounting with an average level and ensure good performance.
5. CONCLUSION
This study aims to identify the impact of computerized auditing in reducing audit risks in Jordan.
By testing the hypotheses, the study reached the following results:
1. There is a statistically significant relationship between the types of programs that are used
in the computerized audit and financial performance in the financial institutions and
companies in Jordan. The results attained in this respect includes saving of work on a daily
basis by computerized program, modern computerized programs used in computerized
accounting audit and information can be retrieved accurately in the event of loss. This
means that that the software used in the computerized audit ensure good financial
performance.
2. There is a statistically significant relationship between the types of training programs for
staff in the computerized audit and financial performance in the financial institutions and
companies in Jordan. The results attained in respect to the same are holding training
courses for the programs that are used in auditing computerized, coaching staff
commensurate with their qualifications and their ability to handle errors occurring in
computerized financial information and training courses serve the desired goals, used in
computerized audit. Finally, this demonstrates that staff are well trained and fully qualified
for the work of the accounting and auditing computerized ensuring impress.
3. There is a statistically significant relationship between accounting information systems in
the computerized audit and financial performance in the financial institutions and
companies in Jordan. The results attained in this respect includes accounting information
systems are connected quickly with accounting and information technologies, many of the
traditional functions include accounting systems require a mixture of new technological
knowledge and accounting and easy to deal with accounting information systems.
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Ultimately, this depicts that the accounting information systems used in financial companies
Jordanian reduce risks and accounting with an average level and ensure good performance.
6. SUGGESTIONS
These are the recommendations for the purpose of improving computerized audit within
Jordan. The successful implementation of these must help the all organizations that improve
their recording of transactions so the risk related to audit will be minimized. The different
suggestions in respect to same are provided below:
1. Implementation of application controls within their units. These are the controls that relates
to the transaction as well as standing information pertaining in the direction of a computer
based accounting system. These are specific toward known application in addition to having the
main objective related to completeness and accuracy of the accounting records along with the
validity of entries which are made under such records. This help in safeguarding the risk of
material misstatement.
2. Implementation of input controls within their systems. In this, control activities are designed
in such way that ensuring the input is authorized, accurate, complete and timely. These controls
vary according to the terms of quantity and sophistication of matters. The determinants which
are considering under this includes cost considerations and confidentiality requirements with
regard to the data input. The various aspects in which this provides the further assistance are
rage checks, validity checks, format checks, sequence checks, control totals, check digit
verification etc.
3. Implementation of the processing controls within the institutions. This has the work related to
ensuing that input data will be processed correctly along with all the data files updated
accurately in timed manner. The different functions performed with aid of this includes run to
run controls, ensuring the integrity of cumulative totals that are contained within the accounting
records which is ascertained from the processing of one data to the next. Some other basic
aspects in which this assists include appropriate investigation in respect to the rejected items
and evidencing that reject errors have been corrected properly and re-input within the records.
7. Theoretical and contextual contribution of the research:
Theoretical contribution refers as a systematic process which is mainly based on the theory
advancement and development in existing theory by means of some logics and details. The
answers for these questions in theoretical studies will improve the impact of paper as well
asenhance the chance of publication.
Use of computer based AIS has become extensive within entire organization. Use of
information technology at that time was restricted only to transaction system. It also
recommended that information technology skills and knowledge are essential for accountants,
mutually with their business knowledge and skill for successful development of computerization
of accounting within their business organization.
Along with this, this research is important at academic as well as individual level. At
cadmic level, this research or topic helps students by increasing their understanding regarding
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