Question

Based on the material you have learned in this course, what are the tools and approaches IT researchers are using to make IT audit more efficient, and how it helps companies to gain a competitive edge?

Answer 1

1) The tools and approaches IT researchers are using to make IT audit more efficient.

DEFINATION OF IT AUDIT .

IT audit is the examination and evaluation of an organization's information technology infrastructure, policies and operations. IT audit can be considered the process of collecting and evaluating evidence to determine whether a computer system safeguards assets, maintains data integrity, allows organizational goals to be achieved effectively and uses resources efficiently.

The objectives of IT audit include assessment and evaluation of processes that ensure:

i. Asset safeguarding –‘assets’ which include the following five types of assets:

1. Data objects in their widest sense, (i.e., external and internal, structured and non- structured, graphics, sound, system documentation etc).

2. Application system is understood to be the sum of manual and programmed procedures.

3. Technology covers hardware, operating systems, database management systems, networking, multimedia, etc.

4. Resources to house and support information systems, supplies etc.

5. Staff skills, awareness and productivity to plan, organize, acquire, deliver, support and monitor information systems and services.

TOOLS USE IN IT AUDIT

With increased necessity for certification of systems, there is also an increase in the availability of tools which the IT auditors can use.

Generalised Audit Software.

Generalised audit software provide the means to gain access to and manipulate data maintained on computer storage media. IDEA is a commonly used example of generalized audit software. Generalised audit software has been developed specifically to accommodate a wide variety of different hardware and software platforms. They provide a number of functions such as file access, file re- organization, selection and extraction of data, various data analysis function and reporting functions. They are used to examine the existence, accuracy, completeness, consistency and timeliness of data the quality of processes embedded within an application system analytical review to monitor key audit indicators such as trend analysis. But, there are limitations to the use of Generalised Audit Software such as limited capability for verifying processing logic and a limited ability to determine propensity for error.

Example

• IDEA Interactive Data Extraction and Analysis◦
• ACL for Windows (Audit Command Language)
• Widely used for data extraction and analysis
• Allows for virtual 100% testing of client data
• Audit expert systems: making routine decision. For example; Comet by PwC
• Utility and statistical software for example; SAS, SPSS

Industry specific audit software.

Industry specific audit software is designed to provide high level commands that invoke common audit functions needed within a particular industry. To be more specific they provide industry specific logic

Utility Software.

This software performs frequently used functions such as copy, sort, disc search, disc format etc.

Specialised Audit Software.

This is software written to fulfil a specific set of audit tasks. Most well developed systems have embedded audit modules, which essentially comprise routines that throw up alerts as well as information to ensure continued dependence on controls.

Concurrent Audting Tools.

Concurrent Auditing techniques are used to collect audit evidence at the same time as an application system undertakes processing of its data. They could be in the form of special audit modules embedded in application systems to collect process and print audit evidence.

2)IT AUDIT HELP COMPANIES TO GAINS A COMPETITIVE EDGE .

it hleps company in various way as given

Improved Performance

The best audit software is designed to help auditors look into the inner workings and finer details of a business, and just imagine what you could do with these same tools. Many companies are already using auditing software to improve overall performance. You can better identify under-performing departments and inefficient procedures, then eliminate them.

Simply put, the best audit software lets you seek and destroy wasteful practices.

Saved Time

Traditional auditing is time consuming, and auditors have to use a number of manual methods for certain functions. The larger your organization, the more of a headache traditional auditing is going to be. There is also a much higher chance of human error. With automated auditing software, calculations can be done with no disruption to normal functions.

Ease of Use

Today, software is designed with user friendly interfaces with very little learning curve. Auditors are able to retrieve the necessary information in a timely, efficient manner, and it allows them to organize and present it however and whenever they see fit. Your data quality will improve, and positively affect your overall performance.

Whether you are auditing for safety management or environmental compliance, it will be beneficial to your company. Almost 80% of executives say that sustainability contributes very positively to shareholder value in the long term, and 75% of employees feel that personal health and safety is of the utmost importance to them. Don’t let your product or services, or your reputation, suffer by not using all of the tools at hand.

Contact us today to learn more about the types of auditing tools, environmental auditing (industrial & waste audits), and health and safety software that will work best for your company.