Summary: The Effect of Computerized
Information Systems on Auditing and Internal
Control
Supervised by: Dr. Soha Samir
Student: Arwa Ahmed Gad
Introduction
This study aims to examine the relationship between Computerized Information Systems
(CIS) and internal control systems within the Central Organization for Control and
Accounting (COCA) in Yemen.
Key Focus Points
• Impact of computerization on internal control
• Employee skills and system effectiveness
• Challenges in transitioning to automated systems
Research Problem
The study addresses several key questions:
• What is the level of employee training in using CIS?
• How effective are control procedures in detecting errors and violations?
• What is the capability of CIS in internal control processes (inputs, processing, outputs)?
Methodology
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Approach: Descriptive and analytical
Data Collection: Questionnaires and in-depth interviews
Sample: 115 Yemen’s Central Organization for Control and Accounting (COCA)
employees
Tools: SPSS software for statistical analysis
Key Findings
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51.8% of employees lacked sufficient training in CIS
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The system had moderate effectiveness, identifying 60.6% of financial discrepancies.
63.6% believed CIS provided necessary tools for internal control
Hypotheses and Results
• Hypothesis 1: Employee training level is insufficient (refuted)
• Hypothesis 2: Internal control is effective in detecting errors (partially supported)
• Hypothesis 3: CIS has necessary tools for internal control (supported)
Recommendations
• Conduct regular CIS training programs
• Simplify software interfaces and enhance security
• Invest in modern data storage and backup systems
Case Study: Yemen’s Central Organization for Control and Accounting
(COCA)
COCA is responsible for financial oversight in Yemeni governmental institutions. Prior
to CIS, auditing was manual, inefficient, and susceptible to fraud. Post-implementation,
COCA benefited from:
Challenges Faced Before CIS Implementation
Before the adoption of CIS, COCA faced several challenges:
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Manual Processes: Traditional paper-based auditing was slow and prone to human
errors.
Limited Internal Control: Fraud detection and compliance monitoring were
inefficient.
Lack of Employee Training: Auditors lacked expertise in digital tools, affecting
efficiency.
Data Security Concerns: Physical storage of records increased the risk of data loss
and unauthorized access.
Implementation of CIS
COCA introduced an automated auditing system with the following features:
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Automated Data Processing: Replacing manual calculations with software-driven
processes.
Error Detection Tools: Identifying discrepancies in financial transactions using
algorithms.
Access Control Mechanisms: Restricting data access to authorized personnel.
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Real-Time Reporting: Enabling auditors to monitor financial activities
instantaneously.
Conclusion
CIS implementation at COCA has improved auditing and internal controls. Ongoing
training and system improvements are essential to fully realize the benefits of CIS.