ABSTRACT
The financial statements of a business entity are very crucial to both internal and external
parties interested in its economic history, current financial health and prospects for the future.
The preparation and presentation of these statements are major functions of the accounting
system. Prior to the presentation, sections 359-360 of CAMA 1990 mandate the auditors to
carryout such examinations and investigations to enable them form an opinion. These
examinations and investigations for many decades were done manually. However, the advent of
computers used in the processing and production of accounting information created a number of
challenges for the auditors. It is against this backdrop that this study appraised the impact of
computerisation on auditing. The researcher employed both primary and secondary sources of
data collection and the techniques of analyses utilized in this study are the Z-score and the
Pearson Product Moment Correlation Coefficient. Eleven (11) audit firms out of a population of
nineteen (19) recognized by both ANAN and ICAN for the audit of quoted companies in Nigeria
were studied based on judgmental sampling. The period covered was five (5) years from 2001-
2006. Results of the study showed that computer application to auditing does not affect the duties
of the auditors. Secondly, computer application to auditing greatly enhanced effectiveness and
reliability of evidence collection and evaluation.
Thirdly, there is a significant relationship
between computer application and the incidence of loss of audit trail. Consequently, the
following recommendations are made: The application of computer packages should be
broadened to enhance more effective and reliable decisions. Secondly, auditors should be
actively involved in the design and installation of audit packages in computer systems. Again,
training and re-training of auditors should be re-intensified to enhance effectiveness and
efficiency of computer auditing. Audit firms in Nigeria should initiate research programmes for
new and improved audit methods and packages for automatic retrieval of audit trail and the
Departments of Accountancy in our higher institutions of learning should have computer
laboratories packed with audit softwares for practical teaching and acquisition of knowledge in
this vital area.
