Parallel simulation
- 1. PARALLEL SIMULATION BSA – 5 S.Y. 2016-2017 NDMU
- 2. -involves the auditor writing a computer program that replicates some part of a client’s application system, processes actual client data through an auditor’s generalized audit software program and compares the output obtained with output obtained from the client. The method verifies processing of actual transactions and allows the auditor to verify actual client results. Parallel simulation
- 3. Generalized Audit Software (GAS) ■ an off-the-shelf package that can provide a means to gain access to and interrogate data maintained on computer storage media. ■ one of the tools IT Auditors utilize to obtain evidence directly on the quality of the records produced and maintained by application systems.
- 4. ■Auditor writes or obtains a copy of the program that simulates key features or processes to be reviewed / tested ■Auditor gains a thorough understanding of the application under review ■Auditor identifies those processes and controls critical to the application Procedure
- 5. Auditor creates the simulation using program or Generalized Audit Software (GAS) Auditor runs the simulated program using selected data and files Auditor evaluates results and reconciles differences Out of date approach
- 6. ■To facilitate the substantive testing of client account balances. ■To provide evidences on the controls used in the client’s application programs. ■Parallel simulation is the best technique for verification of calculations (depreciation, interest, taxes, payroll Functions
- 7. ■ The auditor can verify the transactions. ■ The size of the sample can be greatly expanded at relatively little additional cost. ■ The auditor can independently run the test. ■ To emphasize exception helps auditor to focus on items where there are differences. ■ Enables the valuation of effects of nonexistent control procedures. Advantages
- 8. ■ Time consuming ■ Incompatibility between auditor and client software ■ Tracing differences between the two sets of outputs to differences in the programs may be difficult ■ significant cost of audit programming if written uniquely for one client Disadvantages
- 9. the auditor may need special training to understand the client’s program and develop a program that simulates the client’s program. The auditor must also take care to determine that the data selected for simulations are representative of actual client transactions.
- 10. Diagram
- 11. (2008, June 12). Retrieved from https://opencourseware.kfupm.edu.sa/colleges/cim/acctmis/acct303/files%5 C2-Lecture_Notes_Chapter7-CAATTs.pdf Accounting Financial and Tax. (2009). Techniques and Technology used in Auditing. Management Information Systems. (n.d.).
- 13. 1. In parallel simulation, the auditor compares the output obtained with output obtained from the client. 2. Generalized Audit Software is one of the tools IT auditors utilize to obtain evidence directly on the quality of the records produced and maintained by application systems. 3. Parallel simulation is the best technique for verification of calculations. 4. The size of the sample can be greatly expanded at relatively little additional cost. 5. Auditor runs the simulated program using selected data and files. 6. Parallel simulation involves the IT personnel writing a computer program that replicates some part of a client’s application system. 7. The auditor cannot independently run the test. 8. Tracing differences between the two sets of outputs to differences in the programs is an advantage of parallel simulation. 9. The auditor does not process actual client data through an auditor’s generalized audit software. True or False