IT Audit and controls – Satyam Computer Services Ltd. (2009)

IT Audit and controls – Satyam Computer Services Ltd. (2009)
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Table of Contents
Introduction.................................................................................................................................................2
Identification of organisational and managerial risk....................................................................................2
Description of audit methodology and design.............................................................................................3
Classification of basic IT control and their impact......................................................................................3
Classification of organizational, operation, and network communication security control..........................4
Demonstration for the requirement of IT audit............................................................................................4
Appraise emerging industry trends in IT auditing and control.....................................................................4
Discussion on the professional, legal, and ethical responsibilities of an IT auditor.....................................5
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6
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Introduction
The information technology audit or IT audit is the process of examination as well as evaluation
of the organisational IT infrastructure, operation as well as policies. To understand the use of use
and impact of IT audit and control on the business the scandal of Satyam Computer Service audit
report is being considered. This is one of the biggest scandals that took place in an IT company
and for that effective audit report needs to be performed to understand the reason and the cause
of scam and also its impact on the firm. The primary purpose of a paper is to provide
understanding regarding IT audit and control planning.
Identification of organisational and managerial risk
Information technology is the rapidly growing technology in the world and for that, it also has
various risk associated with the process. Information technology audit is the best way for the
management control to maintain all the risk that is being faced by the management of the firm
(Suryanto, 2016). The most common risk that could be identified in the organisational, as well as
the managerial context that is relevant to IT audit, is the cyber-security, information security,
mobile computing, IT skill within the internal auditors and the board along with the audit
committee technology awareness. These are the vital risk that has a huge implication on the IT
audit system and due to lack of this process, Satyam CEO has the equal chance to perform fraud
in accounting for the continuous 7 years (Satyam Computer Services, 2018). It is highly essential
for maintaining the internal control system of organisational and management actions to provide
valuable security for the process. These risks are highly effective for the IT audit control to
maintain the working function and the activity effectively in the IT firm.
The IT audit and control is essential for Satyam Computer service to maintain the information
and the process of cyber-security (Thompson, Ravindran, & Nicosia, 2015). The information, the
system was not safe and secure within the company as it can be seen that from almost 7 years the
fraud took place. This is one of the biggest fraud in the history that made by the CEO of the firm.
Proper planning of IT audit and control is essential for proper IT control activity and also the
business process. It also helps to analyse the data integrity with the business goals and objective
(Balachandran, 2015). In this process, the IT auditors generally examine the physical security
controls along with the financial and the business control that is associated with the IT system. In
general, the IT auditor has to face some of the challenges regarding the technology to perform
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