IT Audit and Controls Assignment
Added on - 10 May 2020
Running Head: IT AUDIT AND CONTROLSIT Audit and ControlsName of the StudentName of the University
1IT AUDIT AND CONTROLSWeek 1-3: Ethical Requirements and Auditors’ IndependenceIT Auditing Ethical RequirementsThe basic role of an audit is to provide a company certain data that is gathered fromhandling and management of various financial and business records prepared by a specificpersonnel called the auditor (Cole, 2017). Freedom of an auditor enables him to perform hisduties based on his own ways rather than working on preset working guidelines set by thecompany. Accounting and business firms at times draw in set audit charges at not as much as themarket rate. However, they generally compensate for the shortage by using and involving non-audit administrations like administration consultancy and duty guidance. This raises worries thatthe auditor's advantages to ensure investors of a company and his business advantages may strifewith each other (Islam et al., 2017). Thus, some audit firms have business interests to ensure aswell. Against the auditor’s freedom, the auditor has to rely upon the company management boardfor his appointment in the role of auditor.Importance of IT Auditor IndependenceAuditor independence is necessary in certain ways as he must be allowed to work in hisown terms in order to get the best results out of him. Auditing is a process that involves the useof essential and important data records of the company. Hence, the best process for auditingcannot be exactly identified by the administration team unless an expert auditor is appointed(Gillani & Ko, 2015). The auditor determines the best method for auditing based on the type andamount of data that is to be used and the ultimate goal of the audit. However, there is also anissue that what if the auditor is given 100% independence and he is misusing it for his ownpersonal gain or even a fraud. Hence, most of the companies and organizations do not want to
2IT AUDIT AND CONTROLSgrant full independence to the auditors (Bradford & Herman, 2017). This is not only affecting thecompany business but also the auditor performance as he is forced to work in a specific way thatmay not be suitable for that particular type of audit.Week 3-5: IT Audit Planning Part IIT Auditing ProcessAn IT audit is the review and operation of data that is related to information technologysystems (Gantz, 2014). As per the general convention of an audit process, the initial step takenby the auditors is data assembling followed by using all the data into a specific audit structure.Some risk appraisal choice can help relate the money saving advantage examination of thecontrol to the known risk. In a risk-based approach, IT auditors are depending on inner andoperational controls and also the learning of the company or the business.Client EngagementThe audit acceptance and planning procedure can be contrasted with a guide which givesdirection for the audit group to take after all through the audit so as to enable it to achieve theright last conclusion, i.e. regardless of whether the financial articulations give a genuine andreasonable perspective of the position of the company toward the finish of the bookkeeping timeframe. The key point is that an audit firm does not have any desire to connect with a client whocarries with it unsuitable levels of risk; in this manner it is fundamental that an exhaustiveappraisal is made of the forthcoming engagement before the firm getting to be plainly drawn inwith the client (Chou, 2015). The issues and exercises that an auditor must consider precedingbeginning of the hands on work of an audit are of imperative significance. These are alluded toas the audit acknowledgment and arranging stages. Issues to be considered in connection to
3IT AUDIT AND CONTROLSuprightness, competency and morals that the auditor may have cause to address, are different.Where issues emerge out of any of the above contemplations, the firm should lead properinterviews with the client or outsiders. Should the firm at that point choose to draw in with theclient. It must guarantee that a record of the determination of the issues included is archivedobviously in the audit document.Business and Audit RiskSome business and audit risks are listed below in form example samples.Buy solicitations from imports are probably going to be in foreign monetarystandards (far-fetched yet feasible for trade deals). This builds the risk of wronginterpretation of foreign sums into the domestic cash. There is a risk of error ofbuys and payables (and potentially of offers and receivables).All play equipments sold with a 10-year guarantee. Executives should evaluatethe potential repair costs for flawed products sold inside the most recent 10 years,which might be hard to do precisely (Mutiara, Prasetyo & Widya, 2017). There isa risk of error of the arrangement for guarantee costs.The expansion in income combined with net overall revenue may not withoutanyone else offer ascent to doubt. Notwithstanding, the MD/100% investoroffering his offers gives a huge motivation to need to control yearly benefits so hecan accomplish the most extreme conceivable pick up from the offer deal. Thereis a risk of error of yearly income/benefit in 20X5.