The Tradition Audit Without TechnologyEssay Preview: The Tradition Audit Without TechnologyReport this essayThe tradition audit without technology:The major characters of the tradition audit are all information what is needed by auditors are on the paper and the manual calculators and without high communication technology. Auditors usually were limited by the place in the paper time. When a several people are working on the same auditing project for a client with offices in cities across the country, even worldwide, it takes a lots all time those auditors get the information which they need from the client, even there is risk paper information disappear for many reasons. on the another hand, mail paper information increase the auditing cost. The mistake caused by the manual calculators inevitably, no matter how fixed auditors concentrate on recalculate is, after all auditors are human. The global business become major in the modern business world, some example, several auditors who are in different locations are working a same auditing project, or auditors are in different city even country with the client, when there is issue among these auditors or between auditors and client, they only can communicate with each other by phone or be together and have meeting. Phone call can not make sure information been watched in the same time when the voice is talking about the issue, but having a meeting takes time and money make all people together, it increases auditing cost.
No matter auditors work with technology or not, the most important thing in process of auditing is evidence. The basic framework for the auditor understands of evidence and its use to support the auditors opinion on the financial statement. In reaching an opinion on the financial statements, the evidence gathered from the audit procedure is used to determine the fairness of the financial statements and the type of audit report to be issued. The characters of paper audit evidence are:
Origin: proof of origin easily established. Audit is an industry which has existed and developed for a long time in paper. The standard of this industry was built already, the proof of origin will be found very easily, the rule is there already.
Alteration: paper evidence difficult to alter without detection. Any one tries to change anything on paper there must be marks, auditor can find the marks and whether there are changes in financial statements. Any change for fraudulent, misappropriation of asset can been found easily if auditor wants to find.
Approval: paper documents show of approval on their face. The validity of all of transactions and business events are recorded or signed on paper, and those documents show approval directly. For example, auditor can see the when transaction happens, and the quantity of inventory shipped, and amount account receivable or cash entity receives in this transaction clearly and directly.
Completeness: all relevant terms of a transaction usually included in one same document. All transactions and accounts that should be presented in the financial statements are included. For example, management asserts that inventory represents all item on hand at the balance sheet date.
Format: integral part of document. The long time development of this industry has built standards already, the document includes all evidence needed by auditors, such as existence, occurrence, completeness, ownership, valuation, measurement, and statement presentation.
Availability and accessibility: not usually a constraint during the audit. The evidence also can used in other arranges, such as financial statement report to bank, managers, shareholders to do their objectives.
Signature: simple matter to sign a paper document and review the signature. The signature is evidence for making sure validity of all events, for examples, the contract of transaction, the purchase of properties, and the cheque signed by the treasurer.
The future improved of technology:Good as each is, every current technology will be supplanted by its successor in a surprisingly short time–and these changes in turn will engender entirely new technologies. Consider the following works in progress that likely will make it to market sooner than you think.
RFID, or radio frequency identification, tags contain important tracking and descriptive information about the objects–for example, freight packages, vehicles or pieces of luggage–to which they are attached. This helps companies and government agencies better perform a broad range of functions, from shipping and inventory management to highway toll collection and passenger baggage tracking. Word of these advantages has encouraged a bevy of organizations to emulate Wal-Marts well-publicized RFID implementation. And now that EPCglobal, the RFID industry trade group, has updated its electronic product code (EPC) standard–the RFID version of the bar code–software developers are working on more powerful applications. Nearly every CPA will need to understand this important technology.
The RFID community also has a special place in the hearts of U.S. military contractors. RFID technology has not only made it a major military technology for many years, but it has also contributed to a surge of civilian applications, some of which have become common, or popular during years of intense military training and training. It has been even used in U.S. forces as a method and instrument for targeting sensitive areas, like chemical warfare, chemical agents and other chemical warfare agents that the Pentagon uses to train and advise its soldiers and planes. As military analysts have argued, RFID technology has proven to be a great help in combatting biological and chemical warfare and for detecting chemical agents.
However, it is hard to say just how much of the American military uses these RFID devices, as their popularity and sophistication have not always been the case or how much of the commercial market is for this technology used to perform military-related tasks. Most commercial RFID technology is provided by large vendors, such as U.S. military research labs.
I’m not aware of many major companies that use RFID technology. The most common ones are General Electric Corporation (GNC-USA), General Electric Corp (GE-USA), General Dynamics Corporation (GD-USA), and GE Systems.
Since the end of the Cold War, some of the most successful government technology is provided directly from a US government contractor via the Internet. These companies are also known as subcontractors. Although the US provides the largest commercial RFID service network in the world, many other countries depend on it for military and intelligence purposes.
If you need assistance accessing a service like this, don’t hesitate to call the United States Department of Defense.
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