© 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
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OBJECTIVE 4: COMPUTER PROCESSING
Audit hooks are audit routines that flag suspicious transactions.
Example: State Farm Life Insurance looking for policyholders who change their name or address and then subsequently withdraw funds.
When audit hooks are used, auditors can be informed of questionable transactions as they occur via real-time notification, which displays a message on the auditor’s terminal.