IMPACT INFORMATION TECHNOLOGY (IT) ON AUDIT

IMPACT INFORMATION TECHNOLOGY (IT) ON AUDIT. NAME STUDENT NO. NURL LIYANA BINTI ZULKEFLI 2019249786 WAN RUZANA BINTI WAN TAUPEK AZMI 2019250262 NURFATINI AISYAH BINTI FAKRI 2019247594 DARWISYAH MAR’IYAH BINTI ZAHDI 2019245778.

DEFINITION OF IT ON AUDIT. An IT audit is referred to the examination and evaluation of an organization’s information technology infrastructure, policies and operations. The information technology audits determine whether IT controls protect corporate assets, ensure integrity and align with the business’s overall goals. The use of IT in audit is not only physical security controls, but for overall business and financial controls which involve information technology systems. T he information technology (IT) divide into two sections which are application controls and general controls..

APPLICATION CONTROL. GENERAL CONTROL. Application controls are input controls, processing controls and output controls..

DISCUSSION ISSUE OF IT ON AUDIT. T he function of information technology in the audit process and how it impacts it. The study also emphasizes the global trend of using information technology (software/hardware) to provide a more regulated environment in which to deliver the auditing process. The impact of information technology on the audit profession through audit risk can be seen in the field of internal control, where information technology is evolving in the direction of improving control and auditing while lowering risk. The risk IT on the audit are: Manual monitoring of day-to-day computer performance with operating activities. Replace manual procedures with programmed controls that allow for the possibility of checking each control. Reducing the human errors that can occur in manual systems..

INTRODUCTION. IT audits are used to check that information-related policies and processes are working effectively in modern firms, which are increasingly computerised . The primary purpose of an IT audit includes assesses the systems and processes in place to protect firm data, regulate risks to a company's information assets and assist in identifying measures to reduce those risks, ascertain that information management processes are in accordance with IT-specific laws, policies, and standards, control inefficiencies in information technology systems and related management..

There are five points which are necessary for an IT audit : The first one is organization risks are reduced which means IT auditing entails identifying and estimating IT risks in a business . The second point is fraud detection and prevention which means that IT audit ensures the availability, confidentiality, and integrity of an organization's relevant data. The third point is that IT can increase data security. IT auditing is critical in ensuring that all corporate laws, regulations, and consent are followed by all personnel and the IT department..

ADVANTAGES OF IT ON AUDIT. I nformation technology can boost audit firm productivity and revenue. Work efficiency and productivity can have an impact on individuals, corporate processes, and work groups. Although information technology has varying effects on professionals at various levels, the effects are all positive. At the business process level, information technology can eliminate paper work in the workplace and make information more accessible . This can reduce the working hours for the client and improve efficiency. Online instant messaging software can assist auditors in having real-time online conversations with their clients or colleagues at a very low cost. Information technology can raise the audit firm's productivity and lower its operating costs while also increasing its revenue..

DISADVANTAGES OF IT ON AUDIT. The majority of computer-assisted auditing systems in use today do not allow direct online access to clients' data. Auditors typically obtain the auditee's historical data file from their personnel. The auditors may be given falsified data as a result of this situation. E lectronic data change d with unauthorised people can be unnoticed indefinitely if adequate internal controls are not in place ..

IMPACT ON AUDITING. 1) Effect of general controls on system wide application Auditor should be concerned about the potential for unauthorized software program or data record changes that may cause or unauthorized data and omissions in accounts and may have to expand audit testing in several areas. If general controls are effective, the auditor could also be able to place greater reliance on application controls whose functionality is dependent on IT.

IMPACT ON AUDITING. 3) Effect of IT controls on substantive control IT based application controls that can be used to reduce control risk, auditors can reduce substantive testing. Allow auditors to cut back sample sizes used to test controls in both an audit of financial statements and an audit of control over financial reporting. 4) Shift towards automation system The immediate impact of technology on the audit is within the automation or even elimination of manual and routine tasks. Like human free audit but merely provides the chance for individuals to exercise thought and judgement..

a subfield of artificial intelligence that helps computers to know, interpret and manipulate human languages, with the potential to transform the audit profession.

records the transactions between parties with tamper-proof technologies enable auditors to verify reported transactions without further manual inputs and analysis of data information.

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