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.
An Information Technology audit is therefore the assessment and evaluation of a company policies, operations and information technology infrastructure. These audits ensure corporate assets are protected, data integrity is optimally ensured, and overall goals of the business are achieved. An auditor is mandated with the task of closely examining overall financial and business controls that generally involve IT systems, alongside overseeing security controls.
These IT audits are of great significance especially in companies of the currents era which are broadly automated by computers. This is because they make sure controls that are related to information run perfectly smooth. They also play a significant role in foreseeing uncertainties and risks to information assets of a given company, and consequently in the discovery of tactics that should be employed in a bid to avoid the menaces in question from happening. They also help in securing the companys management systems, by withholding its information standards, regulations and policies.
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 the planning of an IT audit, two major steps are undertaken that is gathering of information and gaining an understanding. Information is first gathered, paving way for planning now to be executed thereon. Consequently, a comprehensive detail of the current inbuilt structure is acquired. Of late, there has been an immense upsurge in the number of organizations that prefer an audit approach that is based on determination of risks. The increase has been attributed to the appealing fact that risks can be easily reviewed, determined and reduced.
IT auditors using the risk based approach rely on operational and internal controls, alongside the company knowledge. This form of risk evaluation decision helps relate the economic benefit of the control, to the foreseen risk. While gathering information, major factors that need to be considered by auditor are the previous year audit results, updated financial information, risk assessment, and their knowledge of the industry and business.
Key factors that the IT auditor should keenly consider when undertaking the gaining an understanding step are control formula, detection of risk evaluation, control risk evaluation and equating total risk, among others. Once gathering of information has been completed, and control adequately comprehended, then the next step of planning and selecting specific areas of carrying out audits can commence, thereon.
The most phenomenal objective of an IT audit is substantiating internal controls actually exist, as well as help in reducing business risk. These audits also provide integrity, confidentiality, as well as promising compliance with regulatory requirements. In City Sydney, such processes have been ascertained to be of profuse importance to firms and organizations operating in the technological field.
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