When would auditing around the computer be appropriate

Audit around the computer approach is used in situations when auditor is of the opinion that computer system is reliable and often comparison of inputs i.e. source documents to outputs i.e. financial reports is done which in auditor's judgement is enough.

Computer auditing is a systematic and logical process that follows a risk based approach to determine whether the information systems of an entity, including its detailed information technology processes, controls and activities, will achieve its IT objectives and will thereby ultimately enable the organisation to ...

Audit test data is used to test the existence and effectiveness of controls built into an application program used by an audit client. As such, dummy transactions are processed through the client's computerised system.

Differentiation between auditing through computer and around computer Auditing through the computer Scope Auditing around the computer Process of evaluating or auditing Definition Process of evaluating a client's client's software and hardware computer controls to determine the to determine the reliability of existence ...