Beruflich Dokumente
Kultur Dokumente
1 PART
(Overview of Prime Bank Ltd)
History, Official Organogram, Mission, Vision, Products and Services
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Introduction
In the present world money is circulated all around the globe. Financial institutions mainly
Banks play a vital role in matching a depositors and lenders and channeling money and making
the economy more efficient. Although the history of banking goes back to the 14 th century in
Europe but banks are now everywhere. Banks in Bangladesh play a significant role compare to
other institutions. Although there are different types of banks specialized for different purposes
and with different brands and capital structure, they are regulated by standards such as the
BASEL standards (to keep a minimum amount of capital) BASEL II etc. Amongst the 49
commercial banks which operate in Bangladesh Prime Bank Ltd. has a unique position in the
minds of clients and regulatory bodies. It is one of the banks in Bangladesh which follows
international standard in Banking and Finance.
Commercial Banks in Bangladesh economy are to face an increasing competition for their
business in coming days, like any other emerging market economies. Their business is no longer
remain easier as they earlier. Nevertheless the banking sector occupies an important place in
Bangladesh because of its intermediary role; it ensures allocation and relocation of resources and
keeps up the momentum of economic activities. It plays an important role in the economic
development of the country and forms the core at the money market. In Bangladesh any
institution which accepts for the purpose of lending and investment, deposits of money from the
public, repayable on demand or otherwise, and is transferable by cheques, draft order or
otherwise, can be termed as a bank. The purpose of banking is thus to ensure transfer of money
from surplus unit to deficit units or in other words, to work as the repository of bank.
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corporate world. As an intern I have worked there under the general banking department of
Prime Bank Ltd, Wari Branch where I have worked under the Account Opening Section,
Clearing Section and Debit Card Section. But most of the time I have worked under Account
Opening and Clearing Section as the working load of that section is higher than other section. I
have discussed about my internship report topic with my supervisor and decided to do working
on Impact of emerging information technology on Auditing which I think one of the topic not
many student have done earlier. During my internship several IT auditors and employees from IT
Dept. has come to Wari Branch for several reasons. During their visit I have discussed with them
about my internship report which has helped me a lot to do my internship report. And also I have
discussed with the Senior Executive Officer of Wari Branch about my internship report helping
me a lot for the completion of this internship report.
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Prime Bank Ltd. is one of the few banks permitted by the Bangladesh Bank in early 90s. These
banks are known as the second generation banks and fortunate to remain immune from the bad
loan culture. Prime Bank was designed to provide all kinds of Commercial, Corporate and
Personal banking services covering all segments of society. Diversification of products and
services include Corporate Banking, Retail Banking and Consumer Banking right from industry
to agriculture, and real estate to software. Prime Bank provides commercial and investment
banking services to all types of customers ranging from small entrepreneur to big business firms.
Besides investment in trade and commerce, the bank participates in the socio economic
development through the participation in priority sectors like agriculture, industry, housing and
self- employment. Prime Bank Ltd. wants to establish, maintain and conduct all types of
banking, investments and businesses in Bangladesh and abroad with superior service, quality and
performance.
Management
In management the bank has a combination of highly skilled and eminent bankers of the country
of varied experience and expertise successfully led by Mr. Ahmed Kamal Khan Chowdhury,
Managing Director of Prime Bank Ltd. and other well educated and dedicated officers working
with missionary zeal for the growth and progress of Prime Bank Ltd.
Motijheel
C/A,
Dhaka-1000,
Bangladesh
Vice Chairman
M.A. Khaleque
Khandker Mohammad Khaled
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Managing Director
Number of Branches
122
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Prime Bank also doing the transaction of bill of exchange, cheque etc. on behalf of the
customers.
Prime Bank Ltd. also assists in the foreign exchange by issuing Letter of Credit (LC).
Prime Bank offers several deposit schemes for its customers.
Prime Bank Foundation operated by Prime Bank Ltd. provides scholarship opportunities
for under privileged and financially instable students for their education.
Prime Bank ensures the securities of valuable documents to clients.
Prime Bank provides locker service to its customers.
Board of Directors
Executive Committee
Managing Director
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Vice President
Executive Officer
Principal Officer
Senior Officer
Junior Officer
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country to provide online branch banking facility to its valued customers. Prime Bank uses
customized software for its day to day transaction. Under this service a customer will be able to
do following types of transactions:
Cash deposit at any branch of the bank irrespective of the location.
Cash withdrawal from any branch of the bank irrespective of the location.
Transfer from one account to other account from any branch.
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Types of Account
Prime Bank has several types of deposits for its customers.
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of deposit is minimum 10 Cr. and for general customers PBL offers 3.00% on Short Term
Deposits.
SL No.
Period
Rate of Interest
01
01 Month
7.00%
02
03 Month
8.25%
03
06 Month
8.25%
04
01 Year or above
8.75%
Letter of Thanks
When a new customer open an account and after completing all the formalities of opening an
account a letter of thanks is send to the mailing address of the accountholder. A thanks letter is
also send to the address of the introducer who introduce the account holder for opening an
account. This letter is generally sent to customers to verify the mailing address of customers. If
this thanks letter is undelivered to customer and if account holder is not returned this letter to
bank then cheque book will not be delivered to customer and no service will be provided
to customers unless or until he/she will return the thanks letter to bank. If this account is
specially verified by the branch manager then thing will be different.
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Account Transfer
Account Opening/Front Desk department also transfer account from one branch to another
branch on customer request. The bank follows the following steps to transfer account:
Application for account transfer about why he/she wants to transfer his/her account from
one branch to another branch.
The customer should need to return the unused cheque books along with the requisition
slip and other materials (if any) during the transfer of his/her account.
Inform the respective branch accountholder want to transfer.
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Forward all the document customer gave during the opening of his/her account.
Verification of signature and approval of operation head of his/her account opening
branch.
Close the account and his/her account opening form with all document is send to the
respective branch customer want to transfer through courier.
Account Closing
Account closing is also done by account opening/front desk department of Prime Bank Ltd. The
customer may want close his/her account at any time giving notice to the bank. On the other
hand the bank also have the right to close customer account giving reasonable notice for the
action or without any notice if the conduct/transaction of the account is not satisfactory to the
bank or any other reason(s). In either case bank will charge a minimum closing charge from the
customers account.
Remittance Department
Remittance is one of the important items of a bank. Now a day a business person cant run his
business without bank remittance facilities. Sending money from one place to another place
through banking channel is called remittance. This dept. helps the bank for domestic and
international transactions of their clients.
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Clearing Department
Clearing Department of a bank performs one of the most important jobs of general banking
division. As such, the clearing department ensures the receipt and transfer on payment on behalf
of its customers. The activities of clearing department are sensitive because here credibility of
the bank to the customers relies on the smooth, efficient and effective functioning of the
department. This clearing department has three main jobs:
1. Inward Cheque clearing
2. Outward Cheque clearing
3. Attending House
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Attending House
Bangladesh Bank conducts this job of clearing house named HOUSE. This is done twice a day
First House and Return House. First House is to deliver cheque and collect cheque from other
banks. Return House is to return the honored cheque.
Note: Bangladesh Bank keep separate A/C for the entire bank and settles the balance considering
the flow of cheque in both ways that is Inward & Outward.
As soon as the principal branch gets the clearance it sends an Inter Branch Transaction Advice
(IBTA) to the branch, who then sent the cheque for collection. Receiving the IBTA is considered
as clearance for the payment to the party.
Cost of Clearing
The collection cost of outward clearing cheque normally varies at Prime Bank Ltd. If the amount
of outward clearing cheque is between 0 to 500000 tk. then the clearing charge is 10 tk. On the
other hand if the amount of outward clearing cheque is more than 500000 tk. then clearing
charge is 25 tk. In other word, for normal value clearing charge is 10 tk. and for high value
clearing charge is 25 tk. Amount between 0 to 500000 tk. is considered as normal value and
anything more than amount 500000 tk. is considered as high value at clearing.
[
LBC
The word LBC means Local Bills for Collection. It is applied on transaction between inter
branch for issuing Pay Order Cheque /Demand Draft Cheque from one branch to another branch
of the same bank. For ex. suppose Prime Bank, Wari Branch have issued a pay order cheque to
Mr. A. Suppose the customer give this pay order cheque to Mr. B. Mr. B has an account at PBL,
Mohakhali Branch. And Mr. B will give this pay order cheque to PBL, Mohakhali Branch for
crediting his/her account. But because pay order cheque has been issued by PBL, Wari Branch,
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now PBL, Mohakhali Branch have to collect the amount of this pay order from internal account
of PBL, Wari Branch. So PBL, Mohakhali Branch have to make LBC letter and send this LBC
with pay order cheque to the PBL, Wari Branch for collecting the amount of this pay order. After
collecting money from PBL, Wari Branch PBL, Mohakhali branch has credited the amount of
this pay order to the account of Mr. B.
IBC
The word IBC means Inward Bills for Collection. It is reverse of LBC. If we consider the
example of LBC I have mentioned earlier, for PBL, Mohakhali Branch pay order cheque is
considered as LBC and PBL, Wari Branch have to paid the amount the amount of pay order to
the internal account of PBL, Mohakhali Branch. So this pay order cheque is IBC for PBL, Wari
Branch. In simple word when transaction between two inter bank branches has happened, then
when Pay Order/Demand Draft is considered as LBC for one branch and at the same time the
same pay order cheque is considered as IBC for another branch.
OBC
The word OBC means Outward Bills for Collection. It is applied on transaction between two
different banks for issuing only Demand Draft. For example, suppose Prime Bank, Wari Branch
has issued a Demand Draft cheque to Mr. A. Suppose the customer give this DD cheque to Mr.
B. Mr. B has an account at Brac Bank, Dhanmondi Branch. And Mr. B gives this DD cheque to
Brac Bank, Dhanmondi Branch for crediting his/her account. But because DD cheque has been
issued by PBL, wari Branch, now Brac Bank, Dhanmondi Branch have to collect the amount of
this DD from internal account of PBL, Wari Branch. So Brac Bank, Dhanmondi Branch has to
make OBC letter and send this OBC with DD cheque to the PBL, Wari Branch for collecting the
amount of this pay order. After collecting money from PBL, Wari Branch Brac Bank, Dhanmodi
branch has credited the amount of this pay order to the account of Mr. B. Becaue DD cheque
cant be cleared at clearing house, thats why bank have to collect the amount of DD cheque
through OBC.
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Dispatch Section
This section is responsible for receiving letter from outside of the bank and to send letter from
the bank. This section maintain a register book and for both sending and receiving letter. There
are two types of register are maintained in this section. They are:
1. Inward Dispatch Register
2. Outward Dispatch Register
Inward Dispatch Register is maintained for receiving letters from outside the bank and Outward
Dispatch Register is maintained for sending letter from the bank to outside. Dispatch division is
mainly operates the function of dispatching the intimation letter to the client, IBCA, IBDA,
OBC, LBC to other banks for their internal transactions with the banks. Dispatch section receives
the documents come from the negotiating bank, from the opening bank (in case of export), and
any other documents, letters, papers etc. In the name of principal branch (Prime Bank). The
officer engaged in this dispatch section maintains a register book to keep entries of those
documents. When the officer receives letter from outside the bank the officer give Received
seals on that paper and give his/her signature at received seal.
Other Services
Consistent with modern edge and competing in the competitive market, Prime Bank Ltd. has
introduced some banking services that are remarkable in a country like Bangladesh. The services
offered by the bank are as follows:
SWIFT service
The Prime Bank Limited is one of the first few Bangladesh Banks to obtain membership of
SWIFT (Society for Worldwide Inter-bank Telecommunication). SWIFT is members owned
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cooperative which provide a first and accurate communication network for financial transaction
such as Letter of Credit, Fund Transfer etc.
SMS Banking
Prime SMS gives 24 hour access to the key financial information of customers Prime Bank
account. It is the simplest way of finding out accountholders daily/month end balance. With
Prime SMS banking customers neither have to wait for their statement to arrive through mail nor
have or call up branches to inquire about their balance and last few transactions.
SME Lending
Job creation is essential and it must come from Small and Medium enterprise that will ultimately
dominate the private sector. During 2014 banks strategy was focused on customer convenience.
The Bank provided working capital loans to suppliers or dealers of large corporations or clusters
of small exporters of non-traditional items. The Banks total SME loan is 460 million.
Corporate Credit
PBLs strategy to provide comprehensive service to the clients of this segment who are large
and medium size corporate customers with expertise in trade finance and related services.
Besides trade finance bank are providing working capital finance, project finance and arranging
syndication for their corporate clients. Syndication and Structured finance unit of the bank
strengthened its footstep in consortium financial market and arranged a number of syndication
deals for its corporate clients.
Credit Card
In the year of 2005 Prime Bank Limited has launched VISA. Before that PBL started its credit
card operation in 1999 by introducing Master Debit Card. Now PBL has become the first local
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bank of the country to achieve principal membership of both the worldwide accepted plastic
money network i.e. Master card and VISA card. PBL has redesigned the credit card facility by
providing the incentive of Free Life Insurance Coverage for their valued cardholders to
mitigate the financial risks.
Institutional Banking
Prime Bank Limited provides a wide range of services to institutional clients, commercial,
merchant and central banks; brokers and dealers; insurance companies; funds and managers and
others. It provides relationship managers who are close to their customers and speak language.
The wide network of institutional banking facilities includes transaction, introduction, problem
solving and renders advice and guidelines on local trading condition.
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nd
2 PART
(Internship Outcome.)
Location, Duties, Responsibilities, problems faced during
internship.
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Location of Employment
I have completed my internship at Prime Bank Ltd. The HRM dept. of Prime Bank Ltd. assigned
me at PBL, Wari Branch which is situated at Old Dhaka to complete my 3 month internship.
Because I also live at Old Dhaka, thats why they assigned me at Wari Branch which is 15
minute walking distance from my house which really make my internship much more easier and
proper.
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pleasant and outstanding. So various kinds of skills and knowledge I have learned during my
internship/my duties and responsibilities at Prime Bank, Wari Branch have been listed below:
This was the first time I got an opportunity to work at corporate world, so by working in
this corporate world I got an opportunity to know banking corporate culture practically.
Dealing with the customers.
Have learned how to give them quick service.
Have learned Account opening procedure of Savings Account, Current Account, Fixed
Deposit Receipt (FDR) and all the deposit schemes of Prime Bank Ltd.
Filling up the account opening form and what are the documents are needed for opening
an account.
Have learned how to fill KYC, SBC and FATCA form.
Have learned photo and signature scanning.
I learned how to keep all the data in the register especially for Pay Order there is a
specific register book which I had to maintain.
Have learned the procedure to deliver cheque book and Master Debit Card to customer.
Have learned how to keep all the data in the register book of OBC, IBC and LBC.
Have learned all the procedure of OBC, IBC and LBC.
Filling Pay Order form.
Providing valuable information to customers about Prime Bank Ltd. products and
services.
Have learned how to maintain all the information of Outward Clearing Cheque to
Outward Clearing Register.
Have learned how bank provide remittance to its customers.
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rd
3 P A RT
(Research Part)
Impact of Emerging Information Technology on Auditing
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Introduction
The increase of the use of information technology and organizational computer use require
auditors to gather critical information more efficiently because organizations are now focusing
on to provide more and more electronic evidence to auditors than traditional evidence (paper
documents). The use of information technology such as Electronic Data Interchange (EDI),
Client Server Computing, Internet, Image Processing System, Electronic Fund Transfer,
Outsourcing etc. end the era of traditional audit. Now the role of Information Technology in
production of audit engagement is of great interest with the rapid growth of IT application.
According to Mancuso (1997) as evidence become more electronic auditors should definitely
need to change their auditing techniques. Thats why the AICPAs Auditing Standard Board
recently issued Statement on Auditing Standards (SAS) No. 80 and are now more focusing on
the use of computer related audit procedures (Jarvin Et. Al 2009), auditors training in
information system (Curtis et al. 2009) and the role of EDP from financial reporting perspective
(Grabski 2011, Morris 2011). Auditors should need to work with IT specialists, so that they
have proper IT capabilities for conducting auditing of different organizations. This IT
understanding becomes more crucial because auditors are now faced with accounting
transactions of different organizations entirely in electronic form without any support of paper
documentation (Martinov & Roebuck, 1998). So this emerging information technology is now
greatly changing the nature and impact of audit which was earlier hugely relied on paper
documents (Deshmukh & Romine, 2002). So auditors will need to change their traditional audit
approach by focusing more and more on an organizations e-commerce strategy and perform
their audit by using computers (Good & Schultz, 2002; Natraj & Lee, 2002). Then it will be
easier for them to properly analyze all the electronic evidence provided by their computerized
clients and can accurately perform their audit procedures.
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work. So this research is all about clarifying the impact of emerging information technology on
performing auditing.
[[
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Literature Review
Electronic Data Interchange (EDI)
EDI is a component of electronic commerce, enables computers to communicate with one
another. According to Lee and Lim (2005) Electronic Data Interchange is a form of inter
organizational electronic commerce where one trading partner establishes individual links with
one or more trading partners through a computer to computer electronic communication method.
EDI is defined as the electronic exchange of business transactions between companies from one
computer to another using an accepted standard format without human intervention (Jenkins,
1994). Ngai and Gunasekaran (2004) defined EDI as the technology by which business
documents such as (orders, invoices, shipping contracts, bills of lading, cheques and so on) are
transmitted electronically. The objective of EDI is to obtain time and cost efficiencies through
the direct exchange of data between clients (Sawabini, 2001). Value Added Networks (VANs)
have been the traditional facilitators providing networking connectivity among EDI trading
partners for the electronic transmission of EDI data (Angeles, Nath and Hendon, 1998).
According to Levi and Gantz (1987) EDI comprises three basic components: the application
software, translation software and communication network. The application software enables the
operations such as purchasing, order processing, account payable and account receivable. The
translation software provides the conversion of data into standard format, whether the
communication network ensures the delivery of information between trading partners. The speed
at which data is electronically exchanged is much faster than the traditional paper based method
and systems can be programmed for numerous operations and business applications such as
auditing.
According to Sokol (1995) the use of EDI can generate numerous benefits of the company such
as cost saving in areas like paper and postage, labor, inventory and shipping, improve customer
service, increase in productivity, enabling faster and more efficient information exchange with
trading partners and enhance internal processing as well as assist the company in gaining
competitive advantage.
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Client/server computing
The client/server computing model is one type of information technology that has gained recent
popularity. The client/server system can be defined as software architecture made up of both the
client and the server, whereby the clients always send requests while the server responds to the
requests send. Client/Server provides an inter process communication because it involves the
exchange of data from both the client and server where each of them performs different functions
Zhang H (2013).
Client/Server computing contains three identifiable modules: the client or front end system
containing the application software; a server or back end system containing the data; and the
middleware or the network that routes requests for data from the client to server (Roesh and
Henry, 1997).
One of the benefits of Client/Server computing is if in case of some break down data is lost it can
be recovered easily and efficiently. In Client/server system all the access, resources and data
security are controlled through the server http://www.unm.edu/.
Client/Server systems contain some specific risks also. Its environment duties are not always
appropriately segregated, making some data easier to destroy. Thats why proper control is
needed in Client/server system to reduce these risks, by focusing on both general and system
controls. When auditing Client/server systems, auditors should examine the control environment,
including managements involvement in setting policies, the organization structure, segregation
of duties, methods of storage and personnel policies-as well as the control structure, including
the accuracy of transactions and records, procedures followed for development of systems; and
data conversion and access (Roesh and Henry, 1997).
Outsourcing
Outsourcing is one type of information technology where a company involves external
consultants that perform data processing services including operations, programming and system
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machine readable files and integrated database, the auditor can now be able to execute
accounting procedure.
In studying the impact of EDP on auditing several problems were identified as also highlighted
in the studies of Reneau (2007) and Narrievalau (2003). Reneau (2007) highlighted the
problems of manpower while narrievalau (2003) have stated the problems associated with
electronic devices. The manpower to handle the systems is insufficient and not trained (Reneau,
2007). And also the several controls to be adopted to ensure that data are not tampered with
require skilled training which is not readily available to several clients of the auditors
(Narrievalau 2003).
However The Institute of Chartered Accountants (ICA), 2003 highlights some of the benefits
of EDP such as EDP is effective in fraud control, it holds large data, it holds efficient filling of
data, it enhances internal control, it disallows alteration of figures, it makes data to be easily
retrievable, it is easily accessible, it is easily subjectable to several moderations, data can be
stored electronically and it is in compliance with modern technology. American Institute of
Certified Public Accountants (2004) has also reported that EDP aids efficiency and
effectiveness of an organization.
Because EDP is a very complex system some errors has been occurred during the processing of
data. One of the EDP errors is processing error. In an EDP environment processing error are
mainly caused by programming errors or systematic errors in the hardware or software. Because
of its complexity the control environment of EDP is even more critical than that in more simple
systems. The types of control in an EDP system are general controls and application controls.
General controls relate to the environment within which systems are developed, maintained and
operated. General controls are to ensure the integrity of application development and
implementation and to ensure that computer operations are properly administrated to protect
hardware, programmes and data files. The general controls are important for safeguarding EDP
equipments and records. On the other hand application controls are developed for purchases,
cash payments and inventory (ATE Paper 8- Auditing, David Chow, FCCA, FCPA, CPA).
Thats why it is important auditors have proper understanding about all the controls of EDP to
accurately perform their audit procedures for their clients.
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Auditing Effectiveness
Auditing Effectiveness is defined as the number and scope of deficiencies corrected following
the auditing process. Auditing is effective if it meets the intended outcome it is supposed to bring
about. Sawyer (1995) states that that the auditors job is not done until defects are corrected and
remain corrected.
Perhaps a key to being able to meet the requirements of improved efficiency and increased
effectiveness lies with the promise of continuous auditing. Continuous auditing can be described
as a comprehensive electronic audit process that enables auditors to provide some degree of
assurance on continuous information simultaneously with, or shortly after, the disclosure of the
information (Rezaee et al., 2002). Given the constant desire for timely and reliable information,
implementation of continuous auditing techniques combined with more frequent reporting can
reap benefits to the financial markets which rely on this information. Furthermore, given the
markets tendencies to react to strategically released earnings announcements in advance of
audited financial results, continuous auditing may help to curb reported abuses by enabling
detection of problems as they occur rather than at the end of a reporting period.
However in order to be able to execute continuous auditing, it seems clear that auditors will not
only have to increase their conceptual abilities in defending the techniques that are the
foundation of the continuous auditing process but also their technical skills in implementing
these techniques. A likely path that audit managers could use to bridge the gap between current
technological skills of an auditor and the skills that would be needed in a continuous audit is to
increase the usage and understanding of computer assisted audit tools and techniques especially
generalized audit software.
For the auditors to be effective, they have to follow International Standards on Auditing
(ISA) which are administrated and regulated through an independent body.
Van Gansberghe (2005) identified the following factors which influence audit effectiveness
Perceptions and ownership
Organization and governance framework
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Legislation
Improved professionalism
Conceptual framework
Resources
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Systems and Process Assurance (SPA) makes use of Computer- Assisted Audit Techniques
(CAATs) which provide a means of accessing large amounts of data in a format that can provide
transparency not attainable through other audit procedures. The use of CAATs increases audit
effectiveness which improves efficiency and decreases audit risks. In light of the increasing
demand on auditors to make the audit more effective and efficient, the use of most prominent
computer assisted audit tools and techniques (CAATTs) by auditors can increase audit efficiency
and effectiveness (Braun et al., 2003)
Conceptual Framework
Electronic Data
Interchange
Electronic Data
Processing
Auditing
Effectiv
eness
Outsourcing
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II.
Is there any relationship between Electronic Data Interchange and Electronic Data
Processing?
III.
Is there any relationship between Client Server Computing and Electronic Data
Processing?
IV.
V.
VI.
VII.
Hypotheses
Ho1: There is no relationship between Electronic Data Processing and Auditing Effectiveness.
Ha1: There is a relationship between Electronic Data Processing and Auditing Effectiveness.
Ho2: There is no relationship between Electronic Data Interchange and Electronic Data
Processing.
Ha2:
Processing.
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Ho3: There is no relationship between Client Server Computing and Electronic Data Processing.
Ha3: There is a relationship between Client Server Computing and Electronic Data Processing.
Ho4: There is no relationship between Outsourcing and Electronic Data Processing.
Ha4: There is a relationship between Outsourcing and Electronic Data Processing.
Ho5: There is no relationship between Electronic Data Interchange and Auditing Effectiveness.
Ha5: There is a relationship between Electronic Data Interchange and Auditing Effectiveness.
Ho6: There is no relationship between Client Server Computing and Auditing Effectiveness.
Ha6: There is a relationship between Client Server Computing and Auditing Effectiveness.
Ho7: There is no relationship between Outsourcing and Auditing Effectiveness.
Ha7: There is a relationship between Outsourcing and Auditing Effectiveness.
Question Instrument
The measurement of the questionnaire items in this study is by means of five-point of Liker
scale from 1 to 5 rating from To a very great extent to no extent at all, strongly agree to strongly
disagree, not at all to To a great extent, effective to not effective and Strongly Disagree to
Strongly Agree. There are 5 variables to work with like as: Electronic Data Interchange, Client
Server Computing, Outsourcing, Electronic Data Processing and Auditing Effectiveness.
For an easy understanding and reading the questionnaire is designed into two parts. The first part
of the questionnaire is taking consideration in the demographic factor of the respondents. The
questions are designed with multiple choice selections for convenience. The second part of the
questionnaire is required the respondents to full up the questions about at which extent and how
much they agree or disagree about the benefit of all these IT applications and how much they
agree or disagree about the impact of information technology on auditing. All data collected are
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fed into the Statistical Package for Social Science (SPSS) for analysis. Total number of questions
of my questionnaire is 32 (without including Demographic question).
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Methodology
The methodology employed in obtaining information via a survey conducted on people who
have proper knowledge about IT. The survey questionnaire is designed and distributed to target
respondents randomly. Target respondents are employees of IT division, IT audit and senior
managers and executive officers who have proper knowledge about IT and effectiveness if IT on
auditing.
Sampling
It cant be possible to ask each and every person of our target population and take datas from
everyone. So to obtain all possible data we have conducted a sampling.
Sample unit
To work on this research first we need to know the demographic information of our target
consumers. We have done some categorization based on which we have decided our sample unit.
Age: Our target consumers should be in the age group of 15 50.
Income: Our target consumers would be the employees who work at IT dept. of an
organization and IT audit of an organization and also people who have huge amount of
knowledge about IT and their income should be BDT 5000 to above 40000.
Social class: Our target consumers should be upper middle class and upper class people.
Gender: Our target consumers can be both Male and Female employees.
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Sample size
In our research I have chosen a sample number of peoples whom I have done my questionnaire
survey. And the sample size of our research is 40 participants.
Procedure
Sample procedure is so important for sampling. Here we have used the non probability sample
procedure. As the researcher chose participants it is being called purposive sampling. Because i
have done my research by questionnaire and our sample size is only 40. So it cant be able to
give us the accurate information.
Data Collection
There are two types of Data collection Primary Data collection and Secondary Data collection. In
our research we used Primary Data and use Secondary Data also. We have collected primary data
from questionnaire which was distributed among 40 participants. All the participants of this
survey are people who are employees of IT Dept. of an organization and also people who have
basic knowledge about Information Technology. And we have collected secondary data from
Journals, Articles, News papers etc.
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Data Analysis
The graphical representation of the proposed framework presented the output and constitution of
relationship among the set of measured variables. This section has discussed the methods
employed the purpose of the study is to measure correlation among variables.
Descriptive Analysis
Descriptive Analysis is basically used to evaluate the demographic information included
personal and demographic information such as gender, age, income. And by using crosstabs here
I describe both together age and income, age and gender etc.
In my descriptive analysis there are three demographic profiles. Those are gender, age and
income. From the Table 1, gender section there were 37 male and 3 female out of 40. From
Table 2, age section there is no person which in age bracket of 15-25, 25 person in 26-35, 13
person in 36-45 and 02 person in 46 and above. From Table 3, income section there is no person
which in income bracket of BDT 5000-15000, 5 person in BDT 16000-25000, 5 person in BDT
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26000-35000 and 30 person in BDT 36000 and above. All this result you can find in Frequency
Table 01, 02 and 03 in the Appendix.
Reliability Analysis
Reliability analysis measures the relation between the variable and the questions of the research.
It shows that how much the questions are reliable in consideration with the variables. Reliability
analysis is conducted when researchers have 2 or more questions that will be summed to
determine a specific variable. Cronbachs Alpha is a measure of internal consistency, that is, how
closely related a set of items as a group. Cronbachs Alpha is a statistic used to determine the
internal consistency, thats why if the value of Cronbachs Alpha increases as the intercorrelations among the items included in the analysis increases. If the questions on the survey or
items being tested have very high inter-correlations, the questions are considered to be measuring
different dimension of the same construct.
N of Items
.758
First in the Reliability analysis of q1, q2, q3, q4, q5, q6, q7, q8, q9 with the variable Electronic
Data Interchange - the Cronbachs Alpha is .758. According to George and Mallery (2003),
the Cronbach Alpha value should be between 0.5-0.6 which is sufficient and 0.7 and above is
considered as desirable or acceptable. The Cronbach Alpha for the 9 questions is .758 which is
desirable. So I can say all these 9 questions are reliable to measure the variable Electronic Data
Interchange.
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Outsourcing
Reliability Statistics
Cronbach's
Alpha
N of Items
.370
In the Reliability analysis of q10, q11, q12, q13, q14 with the variable Outsourcing the
Cronbachs Alpha for the 5 questions is .370 which is too low. This low cronbachs we get after
looking item deleted because before looking item deleted we find (.370) which is very low
relatively this Cronbachs. So this is proved that these 5 questions of Outsourcing have relatively
low internal consistency. So all these 5 questions are not reliable to define the variable
Outsourcing.
N of Items
.818
In the Reliability analysis of q15, q16, q17, q18, q19, q20, q21 with the variable Client Server
Computing - the Cronbachs Alpha for these 7 questions is .818 which is desirable. So I can
say all these 7 questions are reliable to measure the variable Client Server Computing.
N of Items
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Reliability Statistics
Cronbach's
Alpha
N of Items
.466
In the Reliability analysis of q22, q23, q24, q25, q26, q27, q28 with the variable Electronic
Data Processing the Cronbachs Alpha for these 7 questions is .466 which is considered as
sufficient. So this is proved that these 7 questions are reliable to measure the variable Electronic
Data Processing.
Auditing Effectiveness
Reliability Statistics
Cronbach's
Alpha
N of Items
.705
In the Reliability analysis of q29, q30, q31, q32 with the variable Auditing Effectiveness - the
Cronbachs Alpha for these 4 questions is .705 which is desirable. So I can say all these 4
questions are reliable to measure the variable Auditing Effectiveness.
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Spearman Correlation
Spearmans Correlation coefficient is s statistical measure of the strength of a monotonic
relationship between paired data.
We can thus express correlation coefficient test as
Ho: p= 0
Ha: P 0
According to Spearman correlation if correlation coefficient is not equal to 0 and the Sig (2Tailed) value is greater than .05 so you can conclude that there is no significant relationship
between your two variables.
On the other hand if correlation coefficient is not equal to 0 the Sig (2-Tailed) value is less
than.05 then you can conclude that there is a significant relationship between your two variables.
Hypotheses 1
Correlations
Electronic Data
Spearman's rho
Correlation Coefficient
Sig. (2-tailed)
N
Auditing Effectiveness
Correlation Coefficient
Sig. (2-tailed)
N
Processing
Auditing
(EDP)
Effectiveness
1.000
-.055
.738
40
40
-.055
1.000
.738
40
40
Here Correlation coefficient is not equal to 0 but significance alpha () is greater than .05. So
according to Spearman correlation there is no relationship between Electronic Data Processing
and Auditing Effectiveness. So Ho is accepted.
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Hypotheses 2
Correlations
Spearman's rho
Correlation Coefficient
Electronic Data
Electronic Data
Interchange
Processing
(EDI)
(EDP)
1.000
.269
.093
40
40
Correlation Coefficient
.269
1.000
Sig. (2-tailed)
.093
40
40
Sig. (2-tailed)
N
Here Correlation coefficient is not equal to 0 but significance alpha () is greater than .05. So
according to Spearman correlation there is no relationship between Electronic Data Interchange
and Electronic Data Processing. So Ho is accepted.
Hypotheses 3
Correlations
Electronic Data
Spearman's rho
Correlation Coefficient
Sig. (2-tailed)
N
Correlation Coefficient
Sig. (2-tailed)
N
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Client Server
Processing
Computing
(EDP)
1.000
-.182
.260
40
40
-.182
1.000
.260
40
40
50
Here Correlation coefficient is not equal to 0 but significance alpha () is greater than .05. So
according to Spearman correlation there is no relationship between Client Server Computing and
Electronic Data Processing. So Ho is accepted.
Hypotheses 4
Correlations
Electronic Data
Processing
Outsourcing
Spearman's rho
Outsourcing
Correlation Coefficient
1.000
.405**
.010
40
40
.405**
1.000
.010
40
40
Sig. (2-tailed)
N
Electronic Data Processing
(EDP)
Correlation Coefficient
Sig. (2-tailed)
(EDP)
N
**. Correlation is significant at the 0.01 level (2-tailed).
Here Correlation coefficient is not equal to 0 and significance alpha () is also less than .05. So
according to Spearman correlation there is a relationship between Outsourcing and Electronic
Data Processing. Outsourcing and Electronic Data Processing is (100-.01) = 99% positively
related. So Ha is accepted
Hypotheses 5
Correlations
Electronic Data
Spearman's rho
Correlation Coefficient
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Interchange
Auditing
(EDI)
Effectiveness
1.000
.173
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(EDI)
Sig. (2-tailed)
.284
40
40
Correlation Coefficient
.173
1.000
Sig. (2-tailed)
.284
40
40
N
Auditing Effectiveness
Here Correlation coefficient is not equal to 0 but significance alpha () is greater than .05. So
according to Spearman correlation there is no relationship between Electronic Data Interchange
and Auditing Effectiveness. So Ho is accepted.
Hypotheses 6
Correlations
Spearman's rho
Correlation Coefficient
Auditing
Computing
Effectiveness
1.000
.124
.444
40
40
Correlation Coefficient
.124
1.000
Sig. (2-tailed)
.444
40
40
Sig. (2-tailed)
N
Auditing Effectiveness
Client Server
Here Correlation coefficient is not equal to 0 but significance alpha () is greater than .05. So
according to Spearman correlation there is no relationship between Client Server Computing and
Auditing Effectiveness. So Ho is accepted.
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Hypotheses 7
Correlations
Auditing
Outsourcing
Spearman's rho
Outsourcing
Correlation Coefficient
1.000
-.107
.511
40
40
-.107
1.000
.511
40
40
Sig. (2-tailed)
N
Auditing Effectiveness
Correlation Coefficient
Sig. (2-tailed)
Effectiveness
Here Correlation coefficient is not equal to 0 but significance alpha () is greater than .05. So
according to Spearman correlation there is no relationship between Outsourcing and Auditing
Effectiveness. So Ho is accepted.
Pearson Correlation
The most common measure of correlation in statistics is the Pearson Correlation. Pearson
Correlation defines the strength of relationship between variables.
Hypotheses 1
Correlations
Electronic Data
Processing
Auditing
(EDP)
Effectiveness
Pearson Correlation
Sig. (2-tailed)
-.085
.603
40
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Auditing Effectiveness
Pearson Correlation
-.085
Sig. (2-tailed)
.603
40
40
According to Pearsons correlation coefficient theory we can see that the value of Electronic
Data Processing and Auditing Effectiveness is -.085. So there is no relationship between them.
As we know if value is .00 to +1 then it would be positive relationship but here we can see our
value is -.085 then there is a negative relationship. And the value of p is also greater than .05. It
indicates that null hypotheses are true. There is no relationship between them.
Hypotheses 2
Correlations
Electronic Data
Electronic Data
Interchange
Processing
(EDI)
(EDP)
Pearson Correlation
Sig. (2-tailed)
.362
.022
40
40
1
Pearson Correlation
.362*
(EDP)
Sig. (2-tailed)
.022
40
40
According to Pearsons correlation coefficient theory we can see that the value of Electronic
Data Interchange and Electronic Data Processing is .362. So there is a relationship between
them.
As we know if value is .00 to +1 then it would be positive relationship and here we can see our
value is +.362 then it is also a positive relationship. There is 36.2% relationship between
Electronic Data Interchange and Electronic Data Processing. And the value of p is also less than
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.05 which is .022. So it clearly indicates that the alternative hypothesis is true. There is a
moderate relationship between them because its value is between .30-44.
.
Hypotheses 3
Correlations
Electronic Data
Client Server
Processing
Computing
(EDP)
Pearson Correlation
-.276
Sig. (2-tailed)
.085
N
Electronic Data Processing
Pearson Correlation
(EDP)
Sig. (2-tailed)
40
40
-.276
.085
40
40
According to Pearsons correlation coefficient theory we can see that the value of Client Server
Computing and Electronic Data Processing is -.276. So there is no relationship between them.
As we know if value is .00 to +1 then it would be positive relationship but here we can see our
value is -.276 then it is a negative relationship. And the value of p is also greater than .05. It
indicates that null hypotheses are true. There is no relationship between them.
Hypotheses 4
Correlations
Electronic Data
Processing
Outsourcing
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Outsourcing
Pearson Correlation
.456**
Sig. (2-tailed)
.003
N
Electronic Data Processing
Pearson Correlation
(EDP)
Sig. (2-tailed)
40
40
.456**
.003
40
40
According to Pearsons correlation coefficient theory we can see that the value of Outsourcing
and Electronic Data Processing is .456. So there is a relationship between them.
As we know if value is .00 to +1 then it would be positive relationship and here we can see our
value is +.456 then it is also a positive relationship. There is 45.6% relationship between
Outsourcing and Electronic Data Processing. And the value of p is also less than .05 which is
.003. So it clearly indicates that the alternative hypothesis is true. There is a strong relationship
between them because its value is more than .45/45%.
Hypotheses 5
Correlations
Electronic Data
Interchange
Auditing
(EDI)
Effectiveness
Pearson Correlation
Sig. (2-tailed)
.675
N
Auditing Effectiveness
.068
40
40
Pearson Correlation
.068
Sig. (2-tailed)
.675
40
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According to Pearsons correlation coefficient theory we can see that the value of Electronic
Data Interchange and Auditing Effectiveness is .068. So there is a relationship between them.
As we know if value is .00 to +1 then it would be positive relationship and here we can see our
value is +.068 then it is also a positive relationship. There is 6.8% relationship between
Electronic Data Interchange and Auditing Effectiveness. So it clearly indicates that the
alternative hypothesis is true. There is a low moderate relationship between them because its
value less than 0.30.
Hypotheses 6
Correlations
Client Server
Auditing
Computing
Effectiveness
Pearson Correlation
Sig. (2-tailed)
.264
N
Auditing Effectiveness
.181
40
40
Pearson Correlation
.181
Sig. (2-tailed)
.264
40
40
According to Pearsons correlation coefficient theory we can see that the value of Client Server
Computing and Auditing Effectiveness is .181. So there is a relationship between them.
As we know if value is .00 to +1 then it would be positive relationship and here we can see our
value is +.181 then it is also a positive relationship. There is 18.1% relationship between Client
Server Computing and Auditing Effectiveness. So it clearly indicates that the alternative
hypothesis is true. There is a low moderate relationship between them because its value less than
0.30.
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Hypotheses 7
Correlations
Auditing
Outsourcing
Outsourcing
Pearson Correlation
Effectiveness
1
Sig. (2-tailed)
.189
N
Auditing Effectiveness
-.212
Pearson Correlation
Sig. (2-tailed)
40
40
-.212
.189
40
40
According to Pearsons correlation coefficient theory we can see that the value of Outsourcing
and Auditing Effectiveness is -.212. So there is no relationship between them.
As we know if value is .00 to +1 then it would be positive relationship but here we can see our
value is -.212 then it is a negative relationship. It indicates that null hypotheses are true. There is
no relationship between them.
Regression Analysis
Linear regression analysis estimates the coefficients of a linear equation, involving one or more
independent variables (that best predict the value of the dependent variable).
R - R is the square root of R-Squared and is the correlation between the observed and predicted
values of dependent variable. R-Square - This is the proportion of variance in the dependent
variable which can be explained by the independent variables. Adjusted R-square - This is an
adjustment of the R-squared that penalizes the addition of extraneous predictors to the model.
Adjusted R-squared is computed using the formula 1 - ((1 - Rsq) ((N - 1) /( N - k - 1)) where k is
the number of predictors.
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Model Summary
Model
R
.085a
R Square
Adjusted R
Square
Estimate
.007
-.019
.59797
From the table, R value is .085. "R-Square"' tell us that .7% of the dependent variable is
explained by independent variables.
ANOVAb
Model
1
Sum of Squares
Regression
df
Mean Square
.098
.098
Residual
13.588
38
.358
Total
13.686
39
Sig.
.275
.603a
Typically, if Sig is greater than 0.05, we conclude that our model could not fit the data . And
our sig is greater than .05 so we conclude the model not fit the data. Our sig is .603.
Model Summary
Model
1
R
.534a
R Square
Adjusted R
Square
Estimate
.285
.226
.37336
From the table, R value is .534. "R-Square"' tell us that 28.5% of the dependent variable is
explained by independent variables.
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ANOVA
Model
1
Sum of Squares
Df
Mean Square
Regression
2.002
.667
Residual
5.018
36
.139
Total
7.020
39
Sig.
4.786
.007
a. Predictors: (Constant), Client Server Computing, Electronic Data Interchange (EDI), Outsourcing
b. Dependent Variable: Electronic Data Processing (EDP)
Typically, if Sig is greater than 0.05, we conclude that our model could not fit the data . But our
sig is less than .05 so we conclude the model fit the data. If the value of Sig is < .05, then the
model is significant at 95%. Our sig is .007.
Model Summary
Model
R
.274a
R Square
Adjusted R
Square
Estimate
.075
-.002
.59299
From the table, R value is .274. "R-Square"' tell us that 7.5% of the dependent variable is
explained by independent variables.
ANOVA
Model
1
Sum of Squares
Regression
df
Mean Square
1.027
.342
Residual
12.659
36
.352
Total
13.686
39
Sig.
.974
.416
a. Predictors: (Constant), Outsourcing, Electronic Data Interchange (EDI), Client Server Computing
b. Dependent Variable: Auditing Effectiveness
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Typically, if Sig is greater than 0.05, we conclude that our model could not fit the data . And
our sig is greater than .05 so we conclude the model not fit the data. Our sig is .416.
Limitations
There were some problems that I have to face while doing this study which undermines the value
and validity of this particular research. All the limitations of my research have been listed below:
Time is a huge factor in my research. I have got limited time to do my research.
Since I have used non probability sampling. It was really hard to get 40 questionnaire fill
up in several organizations. Because the participants of my questionnaire are employees
of IT Dept. and also people who have huge amount of knowledge about IT. It was really
hard to got their appointment and convince them to fill up my questionnaire paper.
Thats why I have faced some problems during the interview. Most of my participants
were not willing to give the interview.
Because I am a student thats why many participants didnt take the research very
seriously.
Sometimes participants felt uncomfortable to discuss about the research topic or not
sharing their own observation, behaviors and attitudes with a single person.
Lastly only one data collection method which is questionnaire survey was used in the
entire study making the study less reliable to various interpretation and validity.
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Conclusion
Today, from this research we can say as technological changes occur more quickly auditors must
keep pace with emerging information technological changes and their impacts on their clients
data processing system as well as their own audit procedures. But unfortunately from our
research we can say that auditors dont have proper knowledge about all these IT applications
thats why it will be really hard for them to properly audit an organization because more
electronic evidence has been given to them than traditional evidence by organizations. Because
of all these information technology and also because of the use of e-commerce the characteristics
and transactions of business of organizations is been changing very rapidly. Thats why it is
really important that audit firm should provide proper training to auditors by technological expert
so that they can be able to perform their auditing more effectively and efficiently. And slowly
but steadily many audit firms is starting to adopt the use of Computer Assisted Audit Techniques
(CAATs) whose major goals of increasing the quality of audit work, speed rate and expand their
market share through acquiring new clients and generally improve the performance of auditors
have been achieved. To cope up with this technological change auditor should soon need to form
their accounting transaction entirely in electronic form without any paper documentation. After a
scientific and descriptive research it has been found although our participants think that the
impact of emerging information technology on auditing is very high but they also agree that
auditors still dont have enough knowledge about this IT applications thats why a question mark
always arise about the effectiveness and efficiency of auditing. The future holds great challenges
for auditors and riding full speed through the information superhighway will be the only way to
face those challenges. Thats why we can say in this modern era the impact of this emerging
information technology on audit procedure is high and quickly auditors need to adapt and
understand about all these IT applications will help them a lot in future to properly perform their
auditing more effectively and efficiently.
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References
Alexandrova, M., and A. Sarieva. 2007. Outsourcing as a Contemporary Managerial
Practice, In: Managerial and Marketing Aspects of Balkan Countries Development
Conference Proceedings, Sofia: UNWE.
America Institute of certified public accountants, (2004) Guideline Statement, New York:
11(4) (4)- 146.
Angeles R., Ravinder N and Hendon D (1998). International Journal of Physical
Distribution & Logistics Management. Available at WWW. AllBusiness.com.
Auditing Guideline (2003) Yearly Report, London, 4(3) 101-104.
Belcourt, M., 2006. Outsourcing the benefits and risks. Human Resource Management
Review, 16: 269-279.
Bierstaker JL, Burnaby P, Thibodeau J. The impact of information technology on the
audit process: an assessment of the state of the art and implication for the future.
Managerial Auditing Journal 2001; 16(3):159-64.
Boni, G. M. (2003) The impact of electronic data processing, Journal of Accountancy
New York: 3(4) 9-12.
Braide, J. M. (2008) Electronic Data Processing, controls and auditing, Port Harcourt:
The Student Accountant Port Harcourt: 7(1) 13-18.
Deshmukh, Ashutosh & Jeffrey Romine, Accounting Software & e-Business, The CPA
Journal, 72(11), (2002), pp. 52-54.
Enejulu, T.A (2006) Expectations in computer based accounting system. Audit
perspective Certified Public Accountant Okhlahoma 4(3) 838-842.
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MA.
Concepts
in
continuous
assurance.
Available
from:
http://raw.rutgers.edu/continuousauditing/conceptsincontinuousassurance13final.doc;200
2 [retrieved March,2005]
www.journalofaccountancy.com/Issues/1998
www.primebank.com.bd
www.unm.edu
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Yang, David C, Guan, Liming (2004). The evolution of IT auditing and internal control
standards in finan. Statement audits: The case of the United States.
Zabihollah Rezaee Z, Elam R, Sharbatoghlie A (2001). Continuous auditing: the audit of
the future.
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Appendix I
QUESTIONNAIRE
Part A
Personal Information:
1. Male
Female
2. Age:
3. Income:
15-25
5000-15000 Taka
26-35
16000-25000 Taka
36-45
26000-35000 Taka
46 and above
Part B
A. Electronic Data Interchange (EDI)
1
To a very great
extent
2
To a great
extent
3
To a moderate
extent
4
To a small extent
5
To no extent at all
Please Circle or Sign the number which most closely responds to your thinking
1. EDI reduce paper work.
2. EDI reduce errors of the organization.
3. EDI improve customer service.
4. EDI enhance competitive capacity.
5. EDI reduce manpower per task.
6. EDI improve security.
7. EDI reduce inventory and communication cost.
8. EDI improve trading partner relationship.
9. EDI reduce data entry
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B. Outsourcing
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Not at all
To a small
To a moderate
To a very great
To a great
extent
extent
extent
extent
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Effective
Very effective
Neither effective
Not very
Not effective
effective
E. Auditing Effectiveness
1
Strongly
Disagree
Not Sure
Agree
Strongly Agree
Disagree
Thank you
Your Cooperation is highly appreciated
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Appendix II
Data Analysis
SPSS
Descriptive Analysis
Frequencies
Table 1
Gender
Cumulative
Frequency
Valid
Male
Female
Total
Percent
Valid Percent
Percent
37
92.5
92.5
92.5
7.5
7.5
100.0
40
100.0
100.0
Table 2
Age
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
26-35
25
62.5
62.5
62.5
36-45
13
32.5
32.5
95.0
5.0
5.0
100.0
40
100.0
100.0
46 and above
Total
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Table 3
Income
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
16000-25000
12.5
12.5
12.5
26000-35000
12.5
12.5
25.0
30
75.0
75.0
100.0
Total
40
100.0
100.0
Crosstabs
Case Processing Summary
Cases
Valid
N
Gender * Age
Missing
Percent
40
100.0%
Total
Percent
0
.0%
Percent
40
100.0%
Male
Female
Total
36-45
46 and above
Total
22
13
37
25
13
40
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Valid
N
Income * Age
Missing
Percent
40
100.0%
Total
Percent
0
Percent
.0%
40
100.0%
36-45
46 and above
Total
16000-25000
26000-35000
16
12
30
25
13
40
Descriptives
Descriptive Statistics
N
Minimum
Maximum
Mean
Std. Deviation
Gender
40
1.00
2.00
1.0750
.26675
Age
40
2.00
4.00
2.4250
.59431
Valid N (listwise)
40
Descriptive Statistics
N
Minimum
Maximum
Mean
Std. Deviation
Age
40
2.00
4.00
2.4250
.59431
Income
40
2.00
4.00
3.6250
.70484
Valid N (listwise)
40
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Reliability
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Valid
a
Excluded
Total
%
40
100.0
.0
40
100.0
Reliability Statistics
Cronbach's
Alpha
N of Items
.758
Reliability
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Scale: Outsourcing
Case Processing Summary
N
Cases
Valid
a
Excluded
Total
%
40
100.0
.0
40
100.0
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Reliability Statistics
Cronbach's
Alpha
N of Items
.370
Reliability
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Valid
Excludeda
Total
%
40
100.0
.0
40
100.0
Reliability Statistics
Cronbach's
Alpha
N of Items
.818
Reliability
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
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Valid
a
Excluded
Total
%
40
100.0
.0
40
100.0
Reliability Statistics
Cronbach's
Alpha
N of Items
.466
Reliability
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Valid
a
Excluded
Total
%
40
100.0
.0
40
100.0
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Reliability Statistics
Cronbach's
Alpha
N of Items
.705
Nonparametric Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Electronic Data
Spearman's rho
Processing
Auditing
(EDP)
Effectiveness
Correlation Coefficient
1.000
-.055
.738
40
40
-.055
1.000
.738
40
40
Sig. (2-tailed)
N
Auditing Effectiveness
Correlation Coefficient
Sig. (2-tailed)
N
Nonparametric Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
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Electronic Data
Electronic Data
Interchange
Processing
(EDI)
(EDP)
76
Spearman's rho
Correlation Coefficient
1.000
.269
.093
40
40
Correlation Coefficient
.269
1.000
Sig. (2-tailed)
.093
40
40
Sig. (2-tailed)
N
Nonparametric Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Electronic Data
Spearman's rho
Client Server
Processing
Computing
(EDP)
Correlation Coefficient
1.000
-.182
.260
40
40
-.182
1.000
.260
40
40
Sig. (2-tailed)
N
Electronic Data Processing
(EDP)
Correlation Coefficient
Sig. (2-tailed)
N
Nonparametric Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Electronic Data
Processing
Outsourcing
Spearman's rho
Outsourcing
Correlation Coefficient
Sig. (2-tailed)
IUB
(EDP)
1.000
.
**
.405
.010
77
N
Electronic Data Processing
(EDP)
Correlation Coefficient
40
40
**
1.000
.010
40
40
.405
Sig. (2-tailed)
N
Nonparametric Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Electronic Data
Spearman's rho
Interchange
Auditing
(EDI)
Effectiveness
Correlation Coefficient
1.000
.173
.284
40
40
Correlation Coefficient
.173
1.000
Sig. (2-tailed)
.284
40
40
Sig. (2-tailed)
N
Auditing Effectiveness
Nonparametric Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Spearman's rho
Correlation Coefficient
Sig. (2-tailed)
N
IUB
Client Server
Auditing
Computing
Effectiveness
1.000
.124
.444
40
40
78
Auditing Effectiveness
Correlation Coefficient
.124
1.000
Sig. (2-tailed)
.444
40
40
Nonparametric Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Auditing
Outsourcing
Spearman's rho
Outsourcing
Correlation Coefficient
1.000
-.107
.511
40
40
-.107
1.000
.511
40
40
Sig. (2-tailed)
N
Auditing Effectiveness
Correlation Coefficient
Sig. (2-tailed)
Effectiveness
Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Electronic Data
Processing
Auditing
(EDP)
Effectiveness
Pearson Correlation
Sig. (2-tailed)
.603
N
Auditing Effectiveness
-.085
Pearson Correlation
Sig. (2-tailed)
40
40
-.085
.603
IUB
79
Correlations
Electronic Data
Processing
Auditing
(EDP)
Effectiveness
Pearson Correlation
Sig. (2-tailed)
.603
N
Auditing Effectiveness
-.085
Pearson Correlation
Sig. (2-tailed)
40
40
-.085
.603
40
40
Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Electronic Data
Electronic Data
Interchange
Processing
(EDI)
(EDP)
Pearson Correlation
Sig. (2-tailed)
.362*
.022
40
40
1
Pearson Correlation
.362*
(EDP)
Sig. (2-tailed)
.022
40
40
Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
IUB
80
Electronic Data
Client Server
Processing
Computing
(EDP)
Pearson Correlation
-.276
Sig. (2-tailed)
.085
N
Electronic Data Processing
Pearson Correlation
(EDP)
Sig. (2-tailed)
40
40
-.276
.085
40
40
Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Electronic Data
Processing
Outsourcing
Outsourcing
Pearson Correlation
(EDP)
1
Sig. (2-tailed)
.003
N
Electronic Data Processing
Pearson Correlation
(EDP)
Sig. (2-tailed)
.456**
40
40
.456**
.003
40
40
Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
IUB
81
Electronic Data
Interchange
Auditing
(EDI)
Effectiveness
Pearson Correlation
Sig. (2-tailed)
.675
N
Auditing Effectiveness
.068
40
40
Pearson Correlation
.068
Sig. (2-tailed)
.675
40
40
Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Client Server
Auditing
Computing
Effectiveness
Pearson Correlation
.181
Sig. (2-tailed)
.264
N
Auditing Effectiveness
40
40
Pearson Correlation
.181
Sig. (2-tailed)
.264
40
40
Correlations
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Correlations
Auditing
Outsourcing
IUB
Effectiveness
82
Outsourcing
Pearson Correlation
-.212
Sig. (2-tailed)
.189
N
Auditing Effectiveness
Pearson Correlation
Sig. (2-tailed)
40
40
-.212
.189
40
40
Regression
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
Electronic Data
Method
. Enter
Processing
(EDP)a
a. All requested variables entered.
b. Dependent Variable: Auditing Effectiveness
Model Summary
Model
1
R
.085a
R Square
Adjusted R
Square
Estimate
.007
-.019
.59797
ANOVA
Model
1
Sum of Squares
Regression
.098
df
Mean Square
1
IUB
.098
Sig.
.275
.603
83
Residual
13.588
38
Total
13.686
39
.358
Coefficients
Standardized
Unstandardized Coefficients
Model
1
Std. Error
(Constant)
4.209
.421
-.118
.226
Coefficients
Beta
-.085
Sig.
9.997
.000
-.525
.603
(EDP)
a. Dependent Variable: Auditing Effectiveness
Regression
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
Client Server
Method
. Enter
Computing,
Electronic Data
Interchange
(EDI),
Outsourcinga
a. All requested variables entered.
Model Summary
Model
R Square
Adjusted R
Square
Estimate
IUB
84
.534a
.285
.226
.37336
ANOVA
Model
1
Sum of Squares
df
Mean Square
Regression
2.002
.667
Residual
5.018
36
.139
Total
7.020
39
Sig.
.007a
4.786
a. Predictors: (Constant), Client Server Computing, Electronic Data Interchange (EDI), Outsourcing
b. Dependent Variable: Electronic Data Processing (EDP)
Coefficientsa
Standardized
Unstandardized Coefficients
Model
1
Std. Error
(Constant)
.944
.524
.215
.122
.349
-.071
Coefficients
Beta
Sig.
1.802
.080
.258
1.765
.086
.159
.341
2.201
.034
.081
-.131
-.872
.389
(EDI)
Outsourcing
Client Server Computing
Regression
[DataSet1] E:\Document\my University document\Internship
report\Internship.sav
Variables Entered/Removed
Model
Variables
Variables
Entered
Removed
Method
IUB
85
Outsourcing,
. Enter
Electronic Data
Interchange
(EDI), Client
Server
Computinga
a. All requested variables entered.
Model Summary
Model
R
.274a
R Square
Adjusted R
Square
Estimate
.075
-.002
.59299
ANOVAb
Model
1
Sum of Squares
Regression
df
Mean Square
1.027
.342
Residual
12.659
36
.352
Total
13.686
39
Sig.
.416a
.974
a. Predictors: (Constant), Outsourcing, Electronic Data Interchange (EDI), Client Server Computing
b. Dependent Variable: Auditing Effectiveness
Coefficientsa
Standardized
Unstandardized Coefficients
Model
1
B
(Constant)
Electronic Data Interchange
Std. Error
3.856
.832
.158
.194
Coefficients
Beta
.136
Sig.
4.634
.000
.815
.420
(EDI)
IUB
86
.093
.129
.123
.721
.476
-.293
.252
-.205
-1.164
.252
IUB
87