IT Auditing: Organizational and Managerial Risks, Methodologies, Controls, and Responsibilities

Running Head: IT AUDITING
IT AUDITING
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IT AUDITING
Identify the organizational and managerial risks relevant to planning and conducting IT
audit and control activities
There are various risks that most companies as prone to which may be managerial or
organizational risks. The risks that face most organizations today are related to technology.
Technology is growing rapidly and companies can’t escape the fast growth. In this case most
companies have to integrate technology in the business processes. Some of the areas that the
auditors pay close attention include: cybersecurity, social media, data privacy, information
security among others. The audits are performed in order to companies to have the potential to
deliver the setbacks to the companies. The technology in growing quite face and most companies
today are facing more challenges in the daily business process if not able to manage the risk the
companies could encounter.
There are methods for audits that help the organizations manage the organizational and
managerial risks related to the technologies. The auditors ensures that the financial statements of
the company are maintained. In case the auditors fail to identify fraud in the companies, the
auditors may be deemed guilty. The fourteen accounting scandals in the report given affect the
companies or some have affected the auditors who did not identify the frauds (OpinionFront,
2018).
Social media organizational risks which require an IT audit and control. One of the threating
factor in most companies. Social media account for various companies is likely to be attacked by
hackers who infiltrate the accounts. The companies also tend to disclose the financial
information on platforms such as Twitter and Facebook. Many potential investors tend to visit
the social media for the reports and acquisition announcements. If the hackers may change the
information disclosed to the public the companies may be at risk. Other risk related to social
media include: compliance risks, reputation risks and cybersecurity and fraud.
Outsources IT services is another risk that required to be audited and controlled. The outsourced
IT services tend to bring great help to companies but may also result to fraud in the companies.
The auditors ensure that the company is compliant with the contract as agreed upon.
Data is managerial risk that also require IT audit. Every company deals with data. The data
include the financial information and much more important information relating to a company.

IT AUDITING
Most companies experience the risk of data breach risk. Audits activities related to IT specialist
tend to conduct some scans, penetration testing of the systems and also conduct an audit on the
network architecture used in a company to determine the compliance with the network policy
and procedures.
Information Security is another risk encountered by companies. Most companies have critical
information that is not disposed to every person. Companies must ensure that the information is
secure by performing vulnerability scans and reviewing of the access control process used.
Finally the emerging technologies. The auditors provide guidance on risks that they may
encounter on integrating the emerging technology in the business and provide control
requirements in case the new technologies are evaluated before implementation.
The risked mentioned are to be performed by IT specialist to ensure that the companies are safe
from the risks. In cases where the companies have been affected, the auditors should identify the
risk and inform the company’s owners about the potentials risks identified. In this way the
companies will manage the risks.
Describe audit methodologies and design review auditing and post implementing auditing
in a regulatory environment.
The audit methodologies include: IDKK IT Audit methodology and project management
methodology audit. The IDKK IT Audit methodology uses a top bottom approach. The
methodology is risk-oriented. There are several phases included in the methodology. The phases
include planning, verification and testing and the reporting phase. The planning phase involves
the understanding of the organizational structure and the operations in the organization. The
auditor evaluates the regulatory environment and makes a preliminary risk assessment. The
verification and testing phase involves the procedures and the objectives of the control activities.
The application controls should be effective, and ensure integrity, availability and
confidentiality. The final phase is the reporting phase. The reporting phase involves the
conclusions from the methodology used.
The project management methodology audit involves assessing of the design of process used in
the management of various projects. In these case the projects are not assesse but it is the
controls and processes that are assessed.