Title
Adoption of PAPS 1002 for Online Systems
Law
Prc Board Of Accountancy No. 95, S. 2002
Decision Date
Oct 28, 2002
The PRC Board of Accountancy, led by Chairman Eugene T. Mateo, adopted Philippine Auditing Statement (PAPS) 1002 to establish guidelines for auditing in a computer information systems environment on October 28, 2002.
A

Definitions and Key Concepts

  • Defines key terms relevant to CIS environments such as online computer systems, data integrity, and audit trail.
  • Clarifies the roles and responsibilities of auditors in reviewing CIS environments to ensure reliable financial reporting.

Auditing Procedures in CIS Environments

  • Requires auditors to obtain a comprehensive understanding of the CIS, including system controls, processing procedures, and security measures.
  • Stipulates that auditors must evaluate the effectiveness of computer controls to prevent unauthorized access and data manipulation.
  • Auditors must perform risk assessments focusing on technology-related vulnerabilities.

Examination of Online Computer Systems

  • Details the approach for auditing systems that operate over networks and online platforms, highlighting specific risks such as connectivity and data transmission errors.
  • Encourages the use of specialized tools and techniques for auditing in online CIS.

Documentation and Reporting

  • Mandates proper documentation of audit procedures, findings, and tests performed on the CIS environment.
  • Requires clear reporting on identified control weaknesses or risks associated with the CIS.

Penalties and Compliance

  • Ensures that professionals adhering to PAPS 1002 maintain high standards of auditing quality in CIS environments.
  • Implies consequences for auditors who fail to comply with the standards, possibly including disciplinary actions by the Professional Regulatory Board.

Professional Responsibility and Ethical Considerations

  • Emphasizes the auditor's responsibility to maintain confidentiality and integrity while handling computerized information.
  • Stresses adherence to ethical standards in conducting audits in complex technological environments.

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