Para 3.22.72 — MSO (Audit)
Original Rule Text
3.22.72 Before considering the audit requirements for a system being developed, the auditor should have a knowledge of the currently existing system and should keep in mind the following:
(i) weaknesses in the current system affecting the audit approach;
(ii) features in the existing system, which are relied on to provide an effective audit, that should be retained in the new system; and
(iii) additional facilities, not currently provided, which would assist the audit of the new system.
# Important points to be checked
What This Means
Before defining audit requirements for a new system being developed, the auditor should thoroughly understand the existing system. They should identify three things: weaknesses in the current system that affect the audit approach, features in the existing system that support effective auditing and should be retained in the new system, and additional audit facilities not currently available that would improve the audit of the new system.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Auditors should understand the current system before defining requirements for a new one
- 2Weaknesses in the current system affecting audit approach must be identified
- 3Useful audit features in the existing system should be retained in the new system
- 4Additional facilities needed for auditing the new system should be specified
- 5Early auditor involvement in system development improves auditability
Practical Example
A government department is replacing its manual stores accounting system with a computerised one. The auditor reviews the current manual system and notes: weakness — the current system has no way to automatically flag slow-moving inventory, requiring tedious manual checking; strength — the current receipt register provides a clear paper trail that should be replicated electronically; new requirement — the new system should include an automated exception report for stock items not issued in 12 months and should allow the auditor to run queries on historical data. These requirements are communicated to the development team so the new system is auditable from day one.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why should auditors be involved during system development?▼
What kind of additional facilities might auditors request in a new system?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.