Assignment about Overview on IT in Auditing

Running head: IT IN AUDITING
IT IN AUDITING RATIONALE
Name of the Student
Name of the University
Author note

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Table of Contents
3 technologies affecting auditing.....................................................................................................2
Disruption of the technology...........................................................................................................3
Reducing Biasness...........................................................................................................................5
Replacement of Human...................................................................................................................5
Recommended technology...............................................................................................................5
References........................................................................................................................................7

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3 technologies affecting auditing
The 3 technologies that will be affecting the Auditing technology are as follows: -
 IT Audit: IT Audit is basically focused on examining and evaluating the of an
organization’s infrastructural policies. IT Audit is considered as a process of collecting
data and evaluating the same as per the software protocols. Proper understanding of a
situation of whether the data present in the computer are safeguarded and hence wise
perform proper assessment of the data integrity. The prime objective of IT audit includes
Assets safeguarding. In the asset safeguarding 5 assets are considered in this place. The
assets are namely data objects, application system, Technology covers, Resources and
staff data. Another role of IT Audit is to follow 7 attributes in the data that are collected.
Effectiveness of the data that are collected needs to relevant. Optimal usage of the
resource and efficiency of the resources are also one of the major aspect that is
considered as one of the seven attributes. Again maintaining of confidentiality acts as an
important attribute. Integrity of data and its accurateness plays an important role.
Compliance also plays an important role in the process. Reliability of data is the least
attribute that is considered.
 Artificial Intelligence: Artificial Intelligence has been benefitting the section of the
automation process of the labor intensive tasks. Artificial Intelligence has been providing
a structured as well as repetitive tasks. For getting benefitted with the technology of
Artificial Intelligence the entire auditing process is sectioned (Kokina and Davenport
2017). This is the main reason that proper assessment of cognitive technology is
performed in the accounting system. Analyzing the data with the help of the Artificial
Intelligence is one of the major benefit that is provided to the auditing sector. Data

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analysis is performed by predictive analysis. With the help of predictive analysis, the
main benefit that is received is that the result that is received after data analysis is highly
accurate. This helps in proper auditing. Usage of business intelligence in the visual
analytics section has been benefitting the entire process. Repetitive platforms are required
in properly assessing of the data. The activities that are performed by the Artificial
intelligence in the auditing process includes the likes of analyzing numbers, Digesting
words and images, perform digital tasks and perform physical task.
 Blockchain uses the technology of the Distributed Ledger Technology in performing of
the auditing process. Blockchain contains details of each and every details of the data that
are being transacted. One major advantage that can be gained is that there is no central
administration. The main aspect that is considered in this section is that the processing of
the data that are used for auditing can be checked from different collaborative body at the
same time. However security of the data is also well maintained. A digital key is used in
order to make the keep the data secured. In case the key is not present gaining access to
the data is not possible. This is a technique that is used by blockchain in order to keep the
data secured.
Disruption of the technology
Affecting the communication process
 IT Audit: IT Audit will be affecting the communication process in a positive manner. As
the data are transacted via the networks, it is seen that responsibility of establishing
communication links have been considered. IT Audit tools are blended with
communication software in the tools so that data transaction can be made in an efficient
and fast manner. With the help of the IT Audits, it is seen that the auditors are capable of

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controlling flowchart. This controlling of flowchart helps in proper communication in
between the system and the associate controls. The IT Audit system implements the
usage of LANs and WANs. This LAN and WAN are the communication networks that
are present in the system.
 AI: Artificial Intelligence have been acting influential in implementing computing
machinery and intelligence in the process. AI has been helping in implementation of
general methods that has been including the like of analyzing the fragments of statements
and hence wise provide output of the same (Omoteso 2016). The key words of the texts
are located and hence wise processing is performed. This enables the performance as per
the built in contextual framework as per the universe of discourse.
 Blockchain: The communication process is entirely based on the peer to peer network
architecture. In case of blockchain inheriting of decentralizing characteristics is
maintained as well. Blockchain also provides data integrity and hence wise provide a
potential solution that will be achieving data integrity (Kokina, Mancha and
Pachamanova 2017). This enhances proper relying on the cryptography section and hence
wise provide tamper resistance communication and data transaction. Along with higher
integrity secured communication can be established.
Support auditor’s analytical procedures at various stages in the audit
 IT Audit: IT Audit goes through a complete security check before performing data
transaction and hence wise it can be said that Risk assessment stage of audit will be
getting benefitted. Again Substantive analysis section is performed with higher efficiency
as the data collection process is enhanced with IT Audit.

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 AI: AI is mainly focused in the data collection and data analytics section. This data
collection part enhances the substantive analysis and the analysis that is made (predictive
analysis) enhances the final analytical procedure (Gunkel 2012).
 Blockchain: Block chain has a separate digital key which is required to gain access to the
data that are being transacted (Khacef and Pujolle 2019). This method of cryptography
provides robustness to the data being transacted.
Reducing Biasness
 IT Audit: IT Audit collects and provide analyzed data and hence there is no chance of
biasness from the auditor’s end.
 AI: AI collects present data as well as the past data. This collection helps in proper
analysis of the audited outcome. This predicted outcomes are generally accurate in
nature. Hence biasness is eliminated.
 Blockchain: Blockchain is responsible for data collection and transaction in between
collaborative organizations. No proper analysis is made and hence there are still chances
of biasness.
Replacement of Human
The technologies of AI, IT Audit and Blockchain acts as assisting part of the auditing
process. Primarily data collection and analyzing the same is the objective of the technologies.
These technologies can enhance the work process of human and make them easier but replacing
them are not possible.
Recommended technology
IT Audit is recommended.

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COBIT 5 is an IT Governance and Audit tool. As the organization that is considered in
this case is a small organization and estimation process will not be required and neither will be
the sharing of data in the collaborated organization (Al Omari, Barnes and Pitman 2012). Hence
usage of AI and Blockchain will be a waste. Implementation of IT Audit tool like COBIT 5 can
be beneficial. Technology implementation will not only increase the stability of the process but
also increases job numbers (Andry 2016). This increase in job numbers will be increasing the
requirement of the employees who are skilled in IT maintenance and operation.

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References
Al Omari, L., Barnes, P.H. and Pitman, G., 2012, December. Optimising COBIT 5 for IT
governance: examples from the public sector. In Proceedings of the ATISR 2012: 2nd
International Conference on Applied and Theoretical Information Systems Research (2nd.
ATISR2012). Academy of Taiwan Information Systems Research.
Andry, J.F., 2016. Audit of IT Governance Based on COBIT 5 assessments: A case
study. Jurnal Nasional Teknologi dan Sistem Informasi, 2(2), pp.27-34.
Gunkel, D.J., 2012. Communication and artificial intelligence: Opportunities and challenges for
the 21st century. communication+ 1, 1(1), pp.1-25.
Khacef, K. and Pujolle, G., 2019, March. Secure Peer-to-Peer Communication Based on
Blockchain. In Workshops of the International Conference on Advanced Information Networking
and Applications (pp. 662-672). Springer, Cham.
Kokina, J. and Davenport, T.H., 2017. The emergence of artificial intelligence: How automation
is changing auditing. Journal of Emerging Technologies in Accounting, 14(1), pp.115-122.
Kokina, J., Mancha, R. and Pachamanova, D., 2017. Blockchain: Emergent industry adoption
and implications for accounting. Journal of Emerging Technologies in Accounting, 14(2), pp.91-
100.
Omoteso, K., 2016. Audit effectiveness: Meeting the IT challenge. Routledge.