Janus Company, a client of Peterman, CPA, has recently automated its accounting system. While Peterman has been the auditor of Janus for several years, this will be the first audit encompassing the new system. Which of the following is most likely a result of this change?
I.Peterman will need to take courses to develop an appropriate level of IT skill.
II.Peterman will need to revise his audit objectives from prior years to reflect the new situation.
III.Peterman will need to revise his audit program from prior years to reflect the new situation.
a.III only.
b.Both II and III.
c.Both I and II.
d.I, II, and III.
Answer：A
Choice "A" is correct. The audit program will likely need to be revised to reflect the risks and capitalize on the strengths inherent in an automated system. For example, there will likely be a greater risk of unauthorized access, while there may also be greater opportunities for data analysis and review. Audit objectives are the same in a computerized environment as they are in a manual environment. If specialized IT skills are needed, the auditor is less likely to take IT courses than he or she is to seek the assistance of an IT professional.Choices "b", "c", and "d" are incorrect, based on the above explanation.