Information Technology Audit

• Auditing and Assurance
• ||
• April 27, 2021

An Information technology audit scrutinizes and evaluates an organization’s information technology infrastructure applications, data use and management, policies, procedures, and operational processes against recognized standards or established guidelines. Audits assess if the controls to protect information technology assets ensure integrity and are aligned with the organizational goals and objectives.

Information technology audits identify whether IT controls protect corporate assets, ensure data integrity, and align with the business’s overall goals. IT auditors examine physical security controls and general business and financial controls that involve information technology systems.  Operations at modern companies are increasingly computerized, IT audits are used to certify information-related rules and processes are working correctly. The primary purpose of an IT audit includes:

• Evaluates the systems and processes in place that secure company data.
• Regulate risks to a company’s information assets, and help recognize methods to minimize those risks.
• Ensure information management processes comply with IT-specific laws, policies and standards.
• Regulate inefficiencies in IT systems and related management.

Importance of IT audit
IT auditing is essential of three types – performance, the concession to applicable laws, standards and policies, and financial statements audits. The main objective of audits is to see whether there are any unreliable and ineffectiveness in the management and use of the IT system for a business.

This system first recognizes the risks in an entity. It then evaluates them with the help of advanced design controls, therefore allowing the companies to think of a suitable solution to obstruct the threats. Thus, IT auditing is crucial for companies and businesses looking to preserve their IT system and valuable data and information.

Following are the points which are necessary for an IT audit:

• Organization risks are reduced
  IT audit consists of the identification and approximation of IT risks in a company. It usually protects risks related to integrity, confidentiality and availability of IT infrastructure and processes. Additional troubles, including efficiency, effectiveness, and reliability of IT, can also be solved by regular identification and assessment of risks in a company.

• Fraud detection and prevention
  The IT audit also helps the companies in fraud prevention. Systematic analysis of a company’s operations and implementing rigorous internal control systems can prevent and detect various fraud and other accounting irregularities.

• Improves the security of data
  The IT audit instills availability, confidentiality, and integrity of the relevant data of an organization. It guarantees the security of diplomatic data against any threat.

• Enhances IT governance
  IT auditing serves an essential function in ensuring all the businesses laws, regulations, and consent are met by all employees and the IT department. This, in turn, enhances IT authority since IT management has a strong understanding of the risks, controls, and value of an organization’s technological environment.

• Enhances communication within the organization
  Performing an IT audit can upgrade all interactions between the company’s business and technology management. The completion of a computer audit generates this intense need for communication between companies and their technology department. The company’s technology exists to support its functions, strategies, and operations. Arrangement of business and supporting technology is crucial, and IT auditing maintains this alignment.

Executing an IT audit
Having defined the controls expected to be in place, the IT auditor will gather the evidence to determine whether the stated rules are designed and operating effectively. It may require subjective judgment on the auditor’s part and is where the IT auditor’s experience can bring real value to the exercise.

Therefore, if it is a financial organization, an accounting firm, an insurance company, or any other firm you want to monitor and manage. It is crucial to detect your estimating system for the disparity. However, an internal audit can help you take steps to rapidly recognize technology security risks so that you can manage them as quickly, precisely, and completely.

At AJSH, we assist our clients in dealing with internal audits, various corporate matters (Company incorporations, statutory audits, ROC compliances, company winding up) in India by providing them adequate support and guidance from our end. If you have any questions or wish to know more about IT audit, kindly contact us.