One example includes a financial audit or an IT infrastructure audit. Data will be given within this paper to address specific issues that might reside within the IT infrastructure audits. It is important to note that each audit process is specific to the tasks and objectives that are to be achieved. IT infrastruction audit processes, goals, controls, objectives and plans are all associated with IT infrastructure auditing (Ifinedo, 2012). The primary cause of an IT infrastructure audit is to guarantee all IT resources available within a business or organization reach set goals and performance has been achieved while following the correct and the most appropriate processes.
Internal auditors Internal auditors provide operational, strategic, and tactical value to the business. They inform the Change Advisory Board and management about the other stakeholders’ understanding of change management and adherence to policies. They validate the efforts of management to be effective and proactive in facing current and future threats. They compare present practices within the organization with regulatory guidelines and industry practices. What are the responsibilities of internal auditors?
The audit committee should collectively have sufficient financial knowledge of financial risks, financial sustainability reporting and internal controls. 3) The audit committee should oversee integrated reporting. The board of a company may delegate its responsibility for reporting and internal controls to the audit committee. Jackson and Stent (2010) noted that the audit committee will make recommendations to the board which will, after evaluating such recommendations, approve or reject them. One of the responsibilities of the audit committee is to monitor the integrity and completeness of the company’s financial reporting.
Introduction Auditing is a systematic process of objectively obtaining and evaluating evidence to ascertain the degree of correspondence between the assertions and communicating the results to interested users. Whereas, auditors are the person who conducts the auditing procedures to obtain reasonable assurance that the financial statement are free from material misstatement, whether cause by the fraud or error. Although ISA 240 recognized that the auditor may fail to detect material misstatement caused by fraud as the financial statement is well concealed and embedded, but it still does not exclude auditor from detecting fraud (Hasaan, 2013). Besides, it also mentions that it is the responsibilities of auditor to consider fraud in auditing
Internal audit function (IAF) act as a first line defense in corporate governance (CG) for checks and balances. Sometime, it has deeper understanding of current and have potentials role IAF in CG. Internal Audit (IA) provide a better future research and development on a new IAF. Example: role to ensure provides a quality of CG. CG consist of audit committee (AE), external auditor (EA), IAF and management.
The IT Audit function in the Board must contribute towards: Bringing innovation method into positioning with company strategy. Ensuring that technology decisions remain in the very best interests of shareholders. Cultivating organizational development and alignment between business systems. Increasing the Board's overall understanding of technological issues and repercussions within the company. This type of understanding can not come from monetary analysis alone.
A Critical Analysis of Independence of Internal Audit Function Abstract: Internal Audit Function has played in vital role in the organizations in the modern world. Internal audit functions helps in depicting out the fraud and errors that are created in the financial reports of the enterprise which creates risks for the organization. Henceforth, comes in the auditors responsibilities to carry out their relevant procedures with the documentations provided by the Management to gather information on how strong the organizations internal control system has minimized the fraudulent activities. The independence of the Internal Auditor therefore, is most important in the case
Audit independence is independence from parties that have an interest in the financial statements of the reporting entity. Audit independence is an attitude of mind characterised by integrity and an objective approach to the audit process (Baker, 2005). The auditor’s independence is the cornerstone of the auditing profession as it is the foundation of the public’s trust in the audit work (Lindberg and Beck, 2004). The auditor’s independence is also a crucial in the statutory reporting process and it’s a key prerequisite for adding value to the audited financial statements (Mautz and Sharaf, 1961). The purpose of an audit is to enhance the credibility of financial statements by providing written reasonable assurance from independent sources that the financial statements present a true and fair view in accordance with the accounting standards.
The model is expected to act within socially acquired rules which are the social expectations of the public from the auditor to prevent fraud. The rules have indicated in clear terms that the internal audit is that arm of management that is responsible to prevent fraud in an organization which is in line with the users of audit reports
Part II: IT Audit in the process of financial audit After outlining the main impacts of the new technologies of information and communication on the business and financial audit, it is clear that IT audit has become a necessary element in a financial audit. IT audit, in its broadest sense, can handle multiple aspects covering the function computer applications as well. However, it is worth noting that in the context of a financial audit mission is looking for reliability that is privileged. Other aspects of effectiveness and efficiency, generally covered by the operational audit is not required by the financial audit. Chapter 1: The need to use a computer audit and its role in a mission to financial audit It’s during the mission planning that the need of IT audit use is felt.