The Auditors of City Auto Company, a large engineering company, are now in the course of auditing the company's financial statements for the year ended 30 September 2019.

At the audit briefing meeting, the Audit Manager made the following statements:

i)                   'Whilst we are all aware of the benefits that City Auto Company should have gained from using a computer-based accounting system, we need to be alert to the specific risks that a computer-based accounting system poses to an entity's internal controls.'

ii)                   'We will be using audit software.'

REQUIRED:

(a) Outline FOUR (4) benefits that City Auto Company should have gained from using a

      computer-based accounting system.   (8 marks)

(b) Explain SIX (6) specific risks that the use of a computer-based accounting system poses to an

      entity's internal controls. (6 marks)

(c) Explain the term 'Audit Software.' (3 marks)

(d) Describe FIVE (5) functions performed by audit software and for each function, suggest how

     it could be used for a specific task by the External Auditors of City Auto Company.

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