Audit trail
It would not do for the auditor to look only at the present computer applications in big firms and conclude that not very much is changed for him, because all the important figures are kept outside the computer for control purposes and a lot of print-outs, which may be used by the auditor if he so wishes, are normally available.
It is much more worthwhile to look a little into the future, when integrated data processing will be realized in big firms, and when much smaller firms than now seems feasible will use computer systems. In both cases, internal control will be weaker than it is now.
In both cases, also, the limits of internal control are reached earlier, because top management can more easily influence the accounting than seems possible with systems in which more people are involved.
There is one other reason why it seems apt to look a little farther than just around the corner. This reason is more involved. In my opinion—and I am happy to share this opinion with Mr. Gregory M. Boni (The J. of Acc., Sept. 1963) auditing techniques are themselves very well suited to be computerized. This must not be misunderstood. Of course, the auditor’s opinion cannot be formed and expressed by a computer. But the same applies to managerial decisions, which computers are extensively used to take, or at least to factualize.*