EDP Auditing and You

Auditors in general and electronic data processing (EDP) auditing in particular are discussed. There are two types of auditors: external and internal. The external auditor is the certified public accountant type, independent of the firm that contracts for his services. His major purpose is to verify the financial statement of the organization being audited. The internal auditor is an employee of the firm, and his major goal is to assure management that the firm is running as intended. The GAO auditor is a hybrid, he is internal in that he works for the Government and audits Government programs, but he reports to Congress with an external perspective. All three types of auditors are concerned with controls and are, of necessity, drawn to the computer for controls. The computer can be used for accounts receivable, inventory, and evaluation of the efficiency of programs. The auditor can participate in the design of programs, controls embedded in programs, and physical access controls. Auditors need to become involved in the programs they monitor and need to understand the EDP process. Audits can be speeded up by the proper provision of information and by cooperation with the auditor.