Internal Audit and Y2k
Altron Management Services
The Year 2000 problem is not a potential risk , but a certain risk. It would be ideal
if Internal Audit could test by themselves the systems for Year 2000 compliance. However, it is very difficult to accomplish. So, it is important to use a combination of the methods of audit verification such as inquiry, review, observation and re-perform
ance based on the business criticality of the system.
The operations of an entity are under the control of management, which has the responsibility for accurate recording of transactions and the preparation of financial statements in accordance with generally accepted accounting principles. Theses responsib
ilities include those related to internal control, such as designing and maintaining accounting records, selecting and applying accounting policies, safeguarding assets and preventing and detecting error and fraud.