Application of Information Technology in Auditing in Modern

Running Head: Application of Information Technology in Auditing in Modern Business
Application of Information Technology in Auditing in Modern Business
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1Application of Information Technology in Auditing in Modern Business
According to Anomah and Agyabeng, the modern accounting information system is
largely dependent on the information and computer technology (ICT). The task of auditing
consists of identification of errors, frauds and risks after making a proper enquiry and testing
of the internal control system of the entity. The responsibility of the auditors for the
identification of fraud is being acknowledged by the laws and standards. Therefore, it has
become mandatory for the auditors to be fully aware about the impact of the information and
computer technology on the audit process. This study deals with certain concerns like-
whether the audit risks which affects the reliability of the audit report are being presented by
the accounting information system and whether the training provided to the accountants
regarding the modern requirements of IT competence needs any revolution or not.
The internal control system can be divided into two dimensions. The first dimension
is the technical one and the second dimension is non-technical. The differences between the
two are merely interrelated in the engagement of audit and the two types of dimensions
require relevant skills for their operations. Nowadays, the internal audit plays a vital role
within an organization and the challenges that the internal auditors face that their credibility
has never been greater. Therefore, the task of the internal auditors for verifying the strength
of the internal control with the help of the procedures as per ISA 315 for the purpose of
understanding the environment of the business has become quite complex. It has become
complex due to the use of technologies in the preparation as well as presentation of the
accounting information. The current development of audit processes and procedures include
information technology in order to complete the work with competence on time and within
the budget. Hence, the training for IT auditing should not be limited to IT experts only since
it has become mandatory these days to possess IT skills in both hardware and software for the
auditors and the accountants. The practising accountants and auditors should make efficient
and effective contribution for the purpose of increasing the requirements of information and

2Application of Information Technology in Auditing in Modern Business
communication technology in the accounting information system and the auditing of financial
reports for the modern organizations.
Thus it can be concluded from the above discussion that it is necessary for the
professional auditors and the accountants to possess and maintain skills and knowledge which
are required for ensuring the clients for providing professional service as per the current
development made in the practice and techniques. There have been changes in the traditional
auditing and these changes are not because of the regulatory bodies but also due to the
changes in the enactment of the legislations. These developments were necessary for
overcoming the weaknesses of the traditional auditing systems and this has resulted in the
loss of the confidence in this profession. Therefore, the task of the auditors has become more
challenging as the advancement of the information and communication technology has
proved that there is a gap existing between the competencies possessed currently by the
professional and the competencies which are required to be possessed by the professionals for
providing comprehensive audit as per the laws and regulations.

3Application of Information Technology in Auditing in Modern Business
References
Anomah, S. and Agyabeng, O., 2013. Evaluating internal controls in a computerised works
environment–a risk to audit professionals and a challenge to accountancy training
providers. RESEARCH JOURNAL OF.