RISK IDENTIFICATION AND PLAN OF ACTION Two years ago, an external auditing firm supe...

RISK IDENTIFICATION AND PLAN OF ACTION

Two years ago, an external auditing firm supervised the programming of embedded audit modules for Pre-vits Office Equipment Company. During the audit process this year, the external auditors requested that a transaction log of all transactions be copied to the audit file. The external auditors noticed large gaps in dates and times for transactions being copied to the audit file. When they inquired about this, they were informed that increased processing of transactions had been burdening the Mainframe system and that operators frequently had to turn off the EAM to allow the processing of important transactions in a timely fashion. In addition, much maintenance had been performed during the past year on the application programs.

Required

Outline any potential exposures, and determine the courses of action the external auditors should use to proceed.