问题详情

Followingacompetitivetender,yourauditfirmCal&CohasjustgainedanewauditclientTirrolCo.Youarethemanagerinchargeofplanningtheauditwork.TirrolCo’syearendis30June2009withascheduleddatetocompletetheauditof15August2009.Thedatenowis3June2009.
TirrolCoprovidesrepairservicestomotorvehiclesfrom25differentlocations.Allinventory,salesandpurchasingsystemsarecomputerised,witheachlocationmaintainingitsowncomputersystem.Thesoftwareineachlocationis
thesamebecausetheprogramswerewrittenspecificallyforTirrolCobyareputablesoftwarehouse.DatafromeachlocationisamalgamatedonamonthlybasisatTirrolCo’sheadofficetoproducemanagementandfinancialaccounts.
YouarecurrentlyplanningyourauditapproachforTirrolCo.Oneoptionbeingconsideredistore-writeCal&Co’sauditsoftwaretointerrogatethecomputerisedinventorysystemsineachlocationofTirrolCo(exceptforheadoffice)
aspartofinventoryvaluationtesting.However,youhavealsobeeninformedthatanycomputertestingwillhavetobeonalivebasisandyouareawarethatJulyisamajorholidayperiodforyourauditfirm.
Required:
(a)(i)ExplainthebenefitsofusingauditsoftwareintheauditofTirrolCo;(4marks)
(ii)ExplaintheproblemsthatmaybeencounteredintheauditofTirrolCoandforeachproblem,explain
howthatproblemcouldbeovercome.(10marks)
(b)FollowingadiscussionwiththemanagementatTirrolCoyounowunderstandthattheinternalauditdepartmentarepreparedtoassistwiththestatutoryaudit.Specifically,thechiefinternalauditorispreparedtoprovideyouwithdocumentationonthecomputerisedinventorysystemsatTirrolCo.Thedocumentationprovidesdetailsofthesoftwareandshowsdiagrammaticallyhowtransactionsareprocessedthroughtheinventorysystem.Thisdocumentationcanbeusedtosignificantlydecreasethetimeneededtounderstandthecomputersystemsandenableauditsoftwaretobewrittenforthisyear’saudit.
Required:
Explainhowyouwillevaluatethecomputersystemsdocumentationproducedbytheinternalaudit
departmentinordertoplacerelianceonitduringyouraudit.(6marks)


请帮忙给出正确答案和分析，谢谢！