Para 3.22.54 — MSO (Audit)
Original Rule Text
3.22.54 Documentation standards ensure that adequate and up-to-date system documentation is maintained. Careful updating of documentation is also important. The auditor will find documentation helpful as an aid to understanding the system but he must be careful to ensure that it is up-to-date before using it. There should be appropriate standards in the auditee organisation to ensure that:
(i) system documentation is sufficiently comprehensive;
(ii) documentation is updated to reflect system amendments; and
(iii) a back-up copy of the documentation is available.
Without good documentation, it will be difficult to assure that controls will operate on a continuous basis and there will also be a greater likelihood of errors. Good application documentation reduces the risk of users making mistakes or exceeding their authorities. Review of a comprehensive, up-to-date documentation should aid the auditor in gaining an understanding of how each application operates, and may also help in identifying particular audit risks.
What This Means
Documentation standards ensure that comprehensive and current system documentation is maintained. The auditor relies on documentation to understand the system, but must verify it is up to date before using it. The auditee organisation should have standards ensuring documentation is sufficiently detailed, updated after system amendments, and backed up. Without good documentation, controls may not operate consistently, users are more likely to make errors, and auditors will have difficulty understanding the system.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1System documentation must be comprehensive, up to date, and backed up
- 2Auditors use documentation to understand how applications operate and identify risks
- 3Documentation must be updated whenever the system is amended
- 4Poor documentation increases the risk of user errors and control failures
- 5The auditor must verify documentation is current before relying on it
Practical Example
An auditor reviewing a government accounting application asks for the system documentation. The user manual was last updated two years ago, but three major system changes have been made since then. The auditor notes this as a deficiency because the documentation does not reflect current functionality. Clerks are relying on word-of-mouth instructions from colleagues about the new features, leading to inconsistent data entry practices and occasional errors that go undetected.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why must documentation be updated after every system change?▼
What is the risk of not having a backup copy of documentation?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.