Running head: SPECIALIZED AUDITS, COMBINATION, AND COMPUTERIZED TOOLS
Specialized Audits, Combination, and Computerized Tools for Auditing Accounting Information
SPECIALIZED AUDITS, COMBINATION, AND COMPUTERIZED TOOLS
Businesses have always needed accounting information systems (AISs). The first AISs were
physical and rather simple. However, as time progresses, technology and business processes
have also changed; therefore, businesses must have AISs that have both physical and electronic
components. Because business processes and transactions have increasingly become
computerized, audits must cover not only the basic transactions, financial statements, and
controls of a company, but must also include information systems. Five different types of audits
are necessary. Financial audits determine accuracy of transactions and financial statements.
Internal control audits detail the consistencies of internal control policies and procedures, along
with the effectiveness of an AIS. Operational audits gauge the ability of a company to fulfill its
goals and contracts and use of its resources. Compliance audits reconcile obedience to laws and
inconsistencies with said laws. Investigative audits evaluate potential crimes employees and
managers can commit. Each audit is necessary and should be combined for increased
effectiveness. Computer-assisted auditing tools (CAATs) exist to simplify the auditing process.
Eight theories for technological audits exist. Using these audits and the tools that go with audits,
auditors, executives, managers, and other users can determine departures in the companies and
formulate ways to improve such that more favorable audits result and the likelihood of illegal
activities or unethical activities decreases.
Keywords: accounting information system (AIS), compliance audit, computer-assisted
auditing tool (CAAT), financial audit, information technology (IT), internal control audit,
investigative audit, operational audit