Page 134 - DCOM509_ADVANCED_AUDITING

Unit 8: Auditing in Computerized Environment

Data Processing (EDP) based internal control system are to determine whether computer systems Notes
safeguard assets, maintain data integrity, achieve organizations goals effectively and used
resources efficiently.

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Caution A proper system of internal control is necessary to ensure that these objectives are
achieved.
The impact of technology revolution on auditing is as follows:
 Widespread end user computing could sometimes result in unintentional errors creeping
into systems owing to inexperienced persons being involved. Also, coordinated program
modifications etc. may not be possible.

 Improper use of Decision Support System can have serious repercussions. Also, their
underlying assumptions must be clearly documented.
 Auditor’s participation to a limited extent in systems development may become inevitable
to ensure, that adequate controls are built in.
 Usage of sophisticated audit software would become a necessity, since conventional
methods of auditing would no longer be sufficient.

 Data communications and networking would introduce new risk, which an auditor must
be aware of. He must have sufficient knowledge in this area to recommend the necessary
data security and control measures.
The move towards paperless Electronic Data Interchange would eliminate much of the traditional
audit trail, radically changing the nature of audit evidence.
The rapid advancements in information technology would not doubt have a dramatic impact on
auditing. Auditors must adapt themselves to the changing environment and acquire the necessary
additional skills.

Task Prepare a write up on the latest developments in the field of Information Technology.

Self Assessment

State whether the following statements are True or False:
1. The hardware and software are becoming obsolete in no time.
2. Improper use of Decision Support System does not have serious repercussions.

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Caselet History of Information Technology Auditing

nformation Technology auditing (IT auditing) began as Electronic Data Process (EDP)
Auditing and developed largely as a result of the rise in technology in accounting
Isystems, the need for IT control, and the impact of computers on the ability to perform
attestation services. The last few years have been an exciting time in the world of IT
auditing as a result of the accounting scandals and increased regulation. IT auditing has
Contd....

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