The Necessary Things To Know Concerning IT Auditing

By Mattie Knight

The term audit refers to the unsolicited evaluation and presentation of a verdict on the economic records or statements of any given entity or firm by a certified legal auditor, in optimum compliance with the law. The primary role of an audit is to make the auditor proclaim his stand, by either confirming or denying that the financial statements precisely conform to the actual state of affairs in the company financial situation. Companies need IT auditing to investigate transactions carried in computers.

Therefore, an Information Technology audit can be defined as the evaluation, assessment and review of the technological infrastructure, operations and specific policies of a company. These audits are of paramount importance, since they ensure the protection of corporate assets, as well as ensuring the integrity of data is upheld. In addition, they aid oversee the attainment of the company key goals and objectives. Tasked with the responsibility of monitoring the security controls, an auditor is also obligated to strictly examine the general business and monetary controls that involve the use of IT systems.

Operations at this days age companies are utterly computerized. Therefore, these IT audits are used to make sure controls that are information related are running in order. These audits in any organization are of radical significance. First and foremost, they examine the processes and systems that are put in place to ensure the security of the company data. Secondly, they help predict risks to information assets of a company, and in addition, help device ways of curbing those risks. These audits also help enforce information management systems, by ensuring they conform to ISA standards, regulations and specific policies. They also help check drawbacks in firms systems and the whole management at large.

With the incorporation of a multiple number of internal and external stakeholders, the auditing process is a bit concrete. In the recent past, majority of organizations and firms ensure random internal IT control tests, with an effort of enhancing security, dependability, and continuity of the entire system infrastructure.

In planning the IT audit, two major steps are involved. First, information is gathered and then planning done afterwards. Consequently, a comprehensive understanding of the existing internal structure of control is attained. Currently, there has been an upsurge in the number of organizations moving to an audit approach that is risk based. This is because risk is easily identified, and the auditor can either decide to perform substantive or compliance testing forthwith.

IT auditors using the risk based approach are best advised to rely on operational as well as internal controls. They should be in possession of vast knowledge about the company or industry in order for them to make credible and progressive decisions. Other factors that they should consider are risk assessments, the prior years financial audits, recent financial details, and regulatory statuses.

The IT auditor should also put into keen consideration several aspects while executing the gaining an understanding step. They include, detecting risk evaluation, control procedure, control risk evaluation, equating total risk, among others. After information has already been gathered and the control understood, the selection and planning of preferable areas of auditing can henceforth be undertaken.

The key aim of such audit is ensuring that internal controls are actually in existence, and also help in curbing business risks and uncertainties. According to City Sydney, IT audits have been proved to be of productive value to economic entities and other institutions dealing in technology.

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