History of EDP auditing: Electronic Data Processing (EDP) auditing rose to prominence during which period, reflecting the widespread adoption of computers and the emergence of specialized audit standards and certifications?

Difficulty: Easy

Correct Answer: 1970

Explanation:


Introduction / Context:
The discipline of Electronic Data Processing (EDP) auditing emerged as organizations computerized core accounting and operational processes. As mainframes and later minicomputers spread through finance, manufacturing, and government, auditors needed new methods and controls for systems, data, and applications. The question asks in which period EDP auditing became popular, focusing on the decade that saw rapid institutionalization of practices and certifications.


Given Data / Assumptions:

  • “Popularity” refers to broad recognition, professionalization, and formal adoption in audit practice.
  • Computerization accelerated after the 1960s, with significant control frameworks maturing the following decade.
  • Professional bodies and certifications in computer auditing arose alongside increased organizational reliance on IT.


Concept / Approach:
EDP auditing took shape as traditional audit trails moved from paper to electronic logs and files. New risks (program changes, access security, data integrity, system availability) demanded specialized control evaluation: general IT controls, application controls, and compliance testing. The 1970s saw the formation of professional communities and guidelines, laying the groundwork for later certifications and standards that normalized EDP audit work in the profession.


Step-by-Step Solution:

Identify the timeframe when organizations broadly adopted centralized computing for critical processes.Connect that adoption with the institutionalization of EDP audit methods and communities.Recognize the 1970s as the decade when EDP auditing became widely recognized and practiced.Select the option that represents that decade: 1970.


Verification / Alternative check:
Audit history overviews consistently note that the modern computer audit function matured in the 1970s, followed by widespread certification and standard-setting near the end of the decade and into the 1980s, confirming this selection.


Why Other Options Are Wrong:

  • 1950: too early; commercial computing was nascent and not widely embedded in accounting systems.
  • 1975 or 1980: while growth continued, the surge of popularity and formation of core practices had already taken place throughout the 1970s.
  • None of the above: incorrect because 1970s is a well-supported answer.


Common Pitfalls:
Confusing the creation of specific certifications with the broader professional rise; the popularity wave began before certifications became household names.


Final Answer:
1970

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