December 1974 Statement on
Auditing Standards 3
Issued by the Auditing Standards Executive Committee
AlCPA American Institute of
Certified Public Accountants
The Effects of EDP on the Auditor's Study
And Evaluation of Internal Control
1. Section 320, " The Auditor's Study and Evaluation of Internal
Control," of Statement on Auditing Standards No. 11 defines internal
control in terms of administrative control and accounting control.
That section also sets forth the basic concepts of accounting control
and concludes that accounting control is within the scope of the study
and evaluation of internal control contemplated by generally accepted
auditing standards, while administrative control is not.
2. Section 320.33 of SAS No. 1 discusses methods of data processing
Since the definition and related basic concepts of accounting control
are expressed in terms of objectives, they are independent of the
method of data processing used; consequently, they apply equally to
manual, mechanical, and electronic data processing systems. However,
the organization and procedures required to accomplish those objectives
may be influenced by the method of data processing used.
Because the method of data processing used may influence the organization
and procedures employed by an entity to accomplish the
objectives of accounting control, it may also influence the procedures
1 Referred to hereinafter as SAS No. 1.
Copyright © 1974 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036