UTILIZE COMPUTERIZED ACCOUNTING SYSTEMS APPROACH TO AN AUDIT

Cynthia Waddell
Stanley Self
Kaplan University

Adam Sullivan
Liberty University

ABSTRACT

Procedures used by auditors have greatly evolved since the early 1970s. Increasingly,
companies are implementing advanced computerized accounting systems. The audit profession
realized that the traditional approach to an audit, in which the automated procedures were
ignored, was no longer an effective approach. A major impetus for this realization was the fraud
perpetrated by Equity Funding. Auditing has adapted to this changing environment from a non-
computerized process, to a process that worked around a client’s system, to procedures that
allowed auditing through the computer, to the approach used in 2017: auditing using the
computer. A brief description of fraud and financial crimes is presented. In addition, some
notable, historical financial crimes are briefly described as an historical reference.

Keywords: Information Technology, IT, IT Fraud, IT Auditing