MGT 2224 Week 1: Evaluating The Overall Financial Statement

MGT 2224

Week 1 Reflection Paper

Professor: Simon Tang

Student: Yili (Julia) Zhu

July 1st, 2023

During the first week of studying MGT 2224 Information Technology and IT Audit, I felt I was embarking on a captivating journey to the field of IT auditing. With my bags packed and classmates with me, I awaited to explore the whole audit universe. My 4-year undergraduate accounting study experience equipped me with knowledge of financial auditing. Throughout these years, I developed an understanding of examining evidence supporting the amounts and disclosures in the financial statements as well as evaluating the overall financial statement presentation. However, due to my limited academic background in IT, I only have a vague understanding

Besides, the audit phases, from the initial risk assessment phase to the risk response phase and ultimately the reporting phase, are shared by both financial auditors and IT auditors.

Nevertheless, IT auditing and financial auditing are different in there objectives. IT auditing is a business tool that helps a company's top management ensure that information systems, controls and mechanisms are functional, adequate and in compliance with information technology auditing standards1. It helps to prevent the potential risks associated with computer fraud and data theft, while also implementing control procedures within IT systems. On the other hand, financial auditing serves as a crucial business practice which provides solutions to ensure financial activities and information, including financial statements, adhere to professional standards such as GAAP. Interestingly, financial auditors could oversee IT auditors to generate audit reports for internal business purposes. This collaboration between the two teams contributes to enhancing organizational processes and facilitating the achievement of the company's goals and objectives. This newfound knowledge has expanded my understanding as well. Initially, I perceived IT audit and financial audit as parallel disciplines with little collaboration or intersection. However, after attending the first class, I realized the significant impact and value that IT auditors can bring to the auditing process. The support and expertise provided by IT auditors have the potential to enhance audit outcomes, leading to improved management of the organization. This revelation highlights the importance of recognizing the synergies between IT audit and financial audit, and the potential benefits that arise from their