Chang, S. I., Chang, I. C., and Wang, Y. T. 2011. The Development of a Computer Auditing System Sufficient for Sarbanes-Oxley Section 404: A Study on the Sales and Revenue Cycle of the ERP System. NTU Management Review, 21 (2): 001-032
She-I Chang, Professor, Department of Accounting and Information Technology, National Chung Cheng University
I-Cheng Chang, Ph.D. Student, Department of Accounting and Information Technology, National Chung Cheng University
Ying-Ting Wang, Master, Department of Accounting and Information Technology, National Chung Cheng University
Abstract
After the Sarbanes-Oxley (SOX) Act 404 enacted in 2002, public companies were required to comply and maintain internal control of financial reporting in order to strengthen the abilities of internal control and to ensure reliable financial reporting. The objectives of this research are : (1) Explore the important audit items in the sales and revenue cycle to match the principles of SOX404 on the computer audit system. (2) Construct the computer audit system based on the ERP system in the sales and revenue cycle to match the principles of SOX404. (3) Based on the ISO/IEC9126 model, this research verifies the quality of this computer audit system and the accuracy of the audit results. This research explores the control items of the sales and revenue cycle by Grounded Theory and expert questionnaire, as well as develops a computer auditing system using the results of the conceptual aspect followed by laboratory study experimentation to ensure the quality of the computer audit system and the accuracy of the audit results. The outcome of this study assists management and auditors to perform computer auditing.
Keywords
Sarbanes-Oxley Act computer auditing sales and revenue cycle