Publication Date


Document Type


First Advisor

Iliff, Kathryn (Professor of accountancy)||Barbour, Edna Hollar, 1922-

Degree Name

M.S. (Master of Science)

Legacy Department

Department of Accountancy


Electronic data processing; Auditing


During the decade of the 1950's, first generation computers were used for business applications. Since that time, computers have been used for every possible type of business application: payrolls, inventory record maintenance, accounts receivable billing, general ledger maintenance, account analysis, manufacturing cost computations and production planning. As the number of applications increased, and the computer systems became more sophisticated, the auditor found it necessary to change his procedures. As a result, he learned that the computer could be used as a tool to aid in the preparation of workpapers and to perform some of the clerical tasks involved in the audit. It was the purpose of this study to present some of the new auditing procedures and techniques to be utilized in the performance of an audit involving an electronic data processing system. Some of the subtopics discussed included the following: 1. The basic approaches of auditing around and auditing through the computer. 2. Computer control procedures, including general system controls, and data and procedural controls. 3. The use of "Auditape." The data for this study was obtained primarily from an analysis of the internal publications of two public accounting firms. Library research included the professional journals of accounting, and the technical publications in the fields of electronics and computer sciences. Additional information was secured through discussions with partners, managers, and staff of Arthur Andersen & Co. and of Touche Ross & Co. The study revealed that while the "around-the-machine" approach to auditing has proven acceptable in the past, the "through-the-machine" approach is becoming more practical and reliable, especially with the development of on-line, integrated systems. The study also pointed out that internal controls apply to electronic data processing systems which produce and maintain accounting data and are not limited to the manual functions surrounding such systems. Lastly, the study revealed the fact that the development of the "Auditape" system has influenced auditing procedures.


Includes bibliographical references.


vi, 60 pages




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