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Auditing - IT System Risks & Controls

            
             Many organizations and businesses around the world rely on information technology to help run their day to day activities. Computer systems are used to help assist the processing of financial information such as payables. Despite the fact that financial audits attest to the validity and reliability of the information, information technology will provide confidentiality for the information also will also add to the integrity of the information and finally can act as a contingency if something occurs regarding availability by being able to recover (ICAEW, 2012). .
             Application Controls.
             When processing payables, having controls for accuracy and completeness is very important. With the assistance of Information Technology systems this process can be done efficiently. Application controls refers to the transactions and data relating to each computer based application systems with an organization. The main objectives of application controls, which can be manual or programmed is to ensure the completeness and accuracy of records and the validity of the entries made. They are controls over output functions, processing and input. Application controls ultimately ensure that data that has been is complete, valid and accurate; they also make sure the internal processing produces the expected results and making sure that output reports are protected from disclosure.
             In the case of processing payables, application controls can assist in controlling totals, batch balancing and dealing with the reconciliation of accounts. In order for thorough coverage, conducting manual procedures as well as automated controls will help to do so. This computer based system consists of application systems such as inventory control, fixed assets, general ledger, payroll, manufacturing resource planning and distribution requirements planning.
             Information Technology specialist companies such as Fiscal Technologies have actually developed accounts payable audit software which protects organisations against duplicate payments, fraud, invoicing errors, and compliance issues (Fiscal Technologies, 2013).


Essays Related to Auditing - IT System Risks & Controls

1. DOD Financial and Audit Readiness

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  • Word Count: 1822
  • Approx Pages: 7
  • Has Bibliography
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2. The Sarbanes-Oxley Act (SOX)

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3. Information Technology and the Medical Field

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  • Word Count: 1791
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4. Bell South Case Study

Since there is a significant cost in doing audits which is impacted by the audit design and frequency, the guiding principal should be that audits will be performed when the cost of doing so is less than or equal to the risk which the audit helps diminish. ... Auditing should become part of the control environment. The more auditing is done as the only control mechanism present, the more frequently it would be expected to be performed. An additional criteria for audit frequency is that audits should be performed when evidence indicates that a control mechanism is absent or not functioning ...

  • Word Count: 1544
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5. Adapted Responsibility Accounting

Audit Committee - Management has the overall responsibility for protecting company assets and, therefore, for establishing, maintaining, and evaluating the internal control system... - The external auditor reviews the organization's control structure, including the control environment, accounting systems, and control procedures, in order to assess the control risks for financial statement assertions. ... - Obtaining assurance that the organization's control system is adequate and effective to identify risk and exposure, and that the financial disclosures made by ma...

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6. Audit Regulatory

Thiss essay examines the existing system of audit regulation as a mechanisms used to safeguard quality of financial statement. ... This has been verified empirically by observing that the increased contractual conflict resulting from a greater separation between ownership and control or a higher level of indebtedness leads to greater demand for auditing services. ... Regulation, therefore, help to reduce the risk to users of the auditing service, and increase confidence and trust of the users which maybe lacking when a person is dealing with an individual whom they know little about. ... ...

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7. Internal Control in Nonprofit Organizations

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  • Word Count: 3851
  • Approx Pages: 15
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  • Grade Level: Undergraduate

8. Internal control

These internal control objectives should applied to all the major transactions in the audit. To achieve the objectives of a satisfactory system of internal control some general characteristics may be identified. Proper segregation of functional responsibilities A system of authorisation, recording and adequate procedures to provide accounting control of assets, liabilities, revenues and expenses. ... There are certain conditions which increase the risk of fraud and errors. ... The risk increase when management is dominated by one person or when there is high turnover of important pe...

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9. Internet Nowadays

Each domain is likely to be managed differently and under the control of different organizations. ... Given the potential risks, security must be a central focus of any Web Services implementation. ... Therefore, factors such as logging, auditing, and change control must be in place and continuously reviewed. ... Then the firewall establishes a second connection to the system increasing that way the level of control and therefore the overall security. ... Restricted Communications Flow - The direction of communications should be restricted and controlled between the networks that the...

  • Word Count: 2550
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