Internal Audit Control System: Impact of AI and IT

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Internal Audit Control
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Table of Contents
Introduction...............................................................................................................3
Audit of the internal control system..........................................................................4
Audit of Internal Control in modern business...........................................................5
Perception toward Internal control system................................................................5
Conclusion.................................................................................................................6
Reference –................................................................................................................7
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Introduction
In this study Adherence to internal control is evaluate on which management can make a proper
decision- making for business to achieve their goals and objectives. Further, in this study,
internal controls of the business are discussed which can be impacted by information technology
for business. Further uses of information technology tools in audit plan by the auditor are
evaluated and their need in the identification of errors in complex environment discussed in the
context of the internal control system and artificial technology in business activities.
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Audit of internal control system
Internal control system defines as the framework which implemented the rules and regulation for
business internal activities. Internal control is the broad term which includes everything which
reduces risk in business activities and increased performance of management by improving
control on activities. The internal control system is the most important part of every organization
in the current complex market where the situation is reform every day. To achieve their goals
and assure for quality of Services Company or business need to maintain an adequate internal
control system which provides efficient and effective internal activities framework for the
company. Internal control can be a weakness or also a strength for the company. It just depends
on how management considers internal control in their business goals and activities.
As for concern internal control system is the most important part for a business entity in the
current scenario. Implementations of Information Technology models and technique in business
activities like an accounting of financial data for the company to improve the importance of the
internal control system. Audit for internal control can assure management about the data given to
the system is corrected on their best belief and also there is no misconduct of business activities
in their internal environment.
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Audit of Internal Control in modern business
In the current scenario, Information technology is the major technology which is interlinked with
business activities. As technology is introduced various threats are developed in information
technology system for the company. In these various tools are used by Auditor to evaluate the
internal control system and also identified the issue which can be a major impact of the financial
performance of the business entity. The collaboration of Information technology with internal
activities of business activities builds a complex environment in which an individual is able to
conduct fraud and mislead a company. In this research, it is identified that continuous audit
which is the part of internal audit strengthen the perception of auditor toward the performance of
business activities.
Perception toward Internal control system
Business is able to conduct an internal audit which can provide effective control on business
activities. This kind of performance of the business entity defines perceptions of auditor towards
internal control of the business entity (Amin, & Mohamed 2016). For the betterment of
companies’ premises and system, management can be used internal control technique on a
periodical basis and most of the auditor in a different country like Egypt agreed that continuous
checkup or periodically internal audit helps management in better control of their business
activities and also overcome frauds in a business environment. In study additional finding guides
that management performance also depends on the quality of internal control activities of auditor
(Amin, & Mohamed 2016). As in the market, there is the significant difference among big four
audit firms and other local firms which can influence the performance of the company and also
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majorly influence the perception of stakeholder toward the quality of internal control system of
business in the market.
Conclusion
In this study Impact of Artificial Intelligence are analysis and their impact on business control
system evaluated which helps management in better decision making. Further Use of Artificial
intelligence in audit tool for auditor in better implementation of audit plan discussed which
enable to provide relevant information and also helps the auditor in the identification of major
issue or fraud in the internal control system of the business.
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Reference –
 Amin, H., & Mohamed, E. (2016). Auditors' perceptions of the impact of continuous auditing
on the quality of the Internet reported financial information in Egypt. Managerial Auditing
Journal, 31(1), 111–132.
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