Pet Shop Ltd

Essay

Pet Shop Ltd. is a large retail outlet with ten full-time employees in addition to the owner. You dropped by on your way home one day to organize the audit planning process for the coming year and noticed brand new terminals at the cashier's desk. One of the employees was having fun zapping inventory items. The owner teased him about the new laser scanning devices and told him to get to work to see which items needed to be ordered. It turns out that Pet Shop Ltd. has implemented a new point-of-sale computer system that is integrated with inventory. The last time you were there to buy dog food (about three months ago), the store had old computer terminals that were no longer functional and staff were recording sales transactions manually in the sales journal.
Required:
List the three sections of the audit. For each section, explain how these new computer systems might affect the audit process.