Can electronic data processing audit replace the conventional audit?

Title: Can electronic data processing audit replace the conventional audit?
Thesis: EDP audit leads to a significant enhancement in the audit efficiency. However, electronic data processing audit is not intended to replace the traditional auditing. Auditors should implement the EDP audit in the conventional audit to improve audit effectiveness.

Introduction:
• Summarized the current e-commerce business activities and how it impacts and trigger the evolving of auditing.
• Purpose and intention of conducting the research topic.
• Define the research objective: compare IT audit with the traditional audit to reach the conclusion.
• Summary of the methodology and findings.

Background:
• Define what is auditing and the purpose of auditing.
• Summarize the types of audit: compliance audit, financial audit, Operational audit, etc.
• Introduce the audit procedures.
• How does audit help businesses (internal/external audit to the business owner, management and public).
• Different between the EDP and the conventional audit.

Body:
• Compare the EDP with the conventional audit
– Pros and Cons of the EDP audit (widely used in general and compliance audit; clear and traceable audit trail; time-saving: client friendly; process large volumes of data quickly; major issue and concerns: security, continuous auditing)
– Pros and cons of the conventional audit

• Firm size
– Hypotheses:
1) All the companies should use the EDP audit
2) Not all the companies are better off using the EDP audit than the traditional audit.
– Analysis:
1) Firm size and the type of business.
2) Price of the EDP system.
– Result

• Roles in managing fraud
– Hypotheses:
1) EDP audit can manage and detect fraud without conventional audit
2) Combine the EDP and the conventional audit to manage fraud
– Analysis
– Result
• Audit standard
– Hypotheses:
1) EDP audit is fully in compliance with the current audit standard.
2) EDP audit is not fully in compliance with the current audit standard.
– Analysis
– Result

• Cyber security
– Hypotheses:
– Analysis
– Result

• School/ Education:
EDP audit is favored by the auditors and schools, however, school administrators may face the problem of lack of skill for educating EDP audit program and system.

Conclusion:
• Thesis and finding
• Recommendations and future auditing.