Do Auditors Need to Have in-Depth Knowledge of Information Technology ...
Yes, auditors need to have in-depth understanding of information technology. Networks and personal computers deliver the many information essential for auditing to work. Because of it to be effective, auditors have to use the computer while an auditing tool, review automated devices and data, and understand the business uses for the systems as well as the situation when the systems run. The different important purposes of networks and computers simply by auditors will be in audit administration.
By pursuing fresh uses for computers and marketing and sales communications, auditors may direct their activities more effectively and enhance their skill to review systems data. Automated tools give auditors the chance to maximize individual output and taxation function. The introduction of auditing inside the fast growth of technology, which usually directly plays a part in information technology auditing, internal control standards and guidelines the result of Yang (2004).
Technology, electronic digital data digesting, and info system have altered the way in which organizations handle its organization, endorsing functional efficiency and assist decision-making. American Institute of Certified Public Accountancy firm (AICPA) plus the Information Devices Audit and Control Connection (ISACA), include provided criteria to allow and deliver necessary guidance to auditors. In SAS Number 48, the effects of laptop processing on the examination of monetary statements, explained and suggested auditors to consider the methods of computer data processing and other important factors including planning and supervision, analyze and examination of inner control, certain matter, methodical review types of procedures, and requirements of the audit team.
In addition, it underlined the consumer characteristics info technology systems that should be tested by the auditor when leading the examination process. In SAS No . 94 acknowledged the types of systems, controls and evidence auditors faced. Mcdougal also talks about the Affirmation Of Information System Auditing (SISA), which communicate the required requirements for information system auditing and reporting Tucker (2001).
Staciokas (2005) have given to understand inner audit capabilities, search a result of information technology and analyze features of internal review in the company governance. Likewise did analysis on the meaning of internal audit has regularly changed and revised within the last few decades, and are still faced with specific issues comprehension of internal review function and it placement within the corporation. At the time the function of internal taxation includes the internal control success, assistance to external auditors, or perhaps fraud brought on, but as well identification of organizational dangers, discussions to the senior supervision on risk management, develop improvement or global operations.
Ruud (2001) points out, it is important to understand demands and anticipations of external and internal decision producers towards internal audit function but as well explained there is some problem faced by internal review being since an important element of organization. Auditors assisted by simply information technology based application; Laptop Assisted Audit Tools increased effectiveness of internal examine in the corporation. The author provides underlined the objective of internal audit function is usually to monitor, examine and boost risk management, regulates, and governance process, but has not provided enough research on how different corporate governance’s approaches can easily influence inside audit procedure in the business.
Coderee (1993) has discussed how pc assisted taxation tools and techniques (CAATT) based courses can handle certain examine function in the organization. The key benefits of CAATT can it be can be used to boost audit coverage, improve the mix of audit abilities, increase self-reliance of auditing from data system features, and undertake greater dependability and boost cost effectiveness throughout the progress of reusable digital techniques. Mcdougal demonstrates and suggests just how automated equipment and methods have superior the value, performance, and performance of audit. This has been stated in internal control over hazardous material where the important audit’s target was to assessment controls in the procurement, distribution, storage, and disposal of hazardous supplies.
But one other standpoint, the writer gives among the workforce decrease program in which CAATT used to review the efficiency and effectiveness of the program, personnel information program, and salaries system, the audit was successfully gives senior administration with an assessment from the effectiveness in the program. As well how auditor inspected the controls above the closure means of a creation plant. In one situation, an audit staff helps the business to determine if equipment and inventory products were bought at an appropriate value, and effectively safeguarded to stop theft or perhaps loss.
The CAATT produced for this seal were efficiently used and reduced timing of the organizing phase generally by much more than 50%. And determine the benefits and efficiency of CAATT in automating audit functions in the firm and allowed improvement of efficiency and effectiveness of auditing process be set up. But the author has not offered any analysis survey and reports to support and warrant his statements. The analysis of how CAATT automating of audit function are only depending on survey and suggestion of unverifiable sources.
As review tools will be growing more powerful and advanced, they are also getting easier to study and use but they also have to adapt right into a difficult and always changing environment. Types of audit application can easily clash with features of other application on the network or laptop, and should be thoroughly managed. As tools become more important, auditors might use features or services provided in the software program that control large amounts of system resources such as processing cycles, conversation bandwidth, and storage, and also to compete with others of those methods. One good model, an auditor can request access to a file with a program that will check each record in the record and can lock other users out until the procedure is finish.
The digesting could also need large amounts of network space for storage at a time launched in short supply and could cause a hardware to crash. It is important to schedule these kinds of processing at times when other system users are not behind or perhaps stop all of them from carrying out their operate. Instead, various audit companies perform their audit analyses using data files copied or perhaps archived from your live production files. It is crucial to understand you cannot find any general style for technology tools ideal to all businesses. It is also vital that you understand the elevating dependence on technology to accomplish or perhaps support virtually all auditing actions.
Technology subject areas make up an increasing percentage from the auditor’s professional knowledge and skills collection. While technology background is important in understanding fresh developments and directions, it is vital to continue obtaining new expertise. Effective make use of audit technology tools is important to the achievements of review activity, yet is only a step toward learning the changes technology in business and the auditing occupation. Developing technology will consistently change the form of and method to business handles, and examine approaches and techniques must change correctly.
Another important role for auditors and the auditing profession, is always to reassure and support the efforts of providers of systems and new technology to boost the built-in monitoring and confidence features of systems without considering these people as finalizing overhead or perhaps as necessities that bring about decreased performance. An important part for auditors is just to comprehend and change while using technologies, but to also describe the effects of this kind of changes to other folks that are being effect by this.