THE CORE OF IT AUDITING

Group 4

Members         : Salma Fida Hakima   (C1I016003)

                          Iftifani Sayyida A     (C1I016025)

                          Isty Fadielah Salim   (C1I016029)

                          Nadiah Rizkiani M    (C1I016038)

THE CORE OF IT AUDITING

IT auditors are examining whether the relevant entities systems or business processes for Achieving and monitoring compliance are effective. IT auditors also assesses the effectiveness of the rules—whether they are suitably designed or sufficient in scope to properly mitigate the target risk or meet the intended objective.

A.    Importance of IT Audit

In order to increase the business value and become a market leader, various industries have transformed their product and operations into the digital ecosystem. In the era of digital transformation as it is today, the proper use of IT is the best way to be chosen by a company. In other words, IT has become a major instrument in the changing business. Therefore, the company must have good competence and knowledge in IT investment selection and its implementation. The company needs a systematic, independent and objective insurance function to provide reasonable insurance, that is through the practice of IT audit.

B.     Unique Inherent Risk

IT presents risk factors that are unique to accounting, auditing and systems. That is, IT itself brings risk to the entity regarding its systems, business processes and financial / accounting processing. That risk is unique to IT and without IT being present, that risk would not exist — at least not to the same level. It takes a professional, such as an IT auditor, to identify and assess the inherent risk associated with IT. Those risk factors include systems-related issues, such as systems development, change management and vulnerabilities, and other technology-specific factors. Apart from the IT professionals, such risk can go unnoticed, to the detriment of the entity. Entities truly need for IT auditors to evaluate their inherent risk of IT.

C.     The Role of Control

IT auditors need to be wary of false security the control is effective enough to mitigate the risk acceptable level. IT auditors should remember and keep in mind that controls introduces a cost and a benefit. A key for IT auditors have been seeking a balance between these costs (real / concrete and impact) and benefits. Generally speaking, the higher the inherent risk, the higher the interest control to mitigate that risk. IT need to, therefore, auditors consider the level of inherent and residual risk when conveying recommendations for controls. Last, controls are often embedded in technologies or systems. That fact alone suggests that IT auditors need to be involved in assisting with the design where independence allows it. It also suggests that IT auditors to assess the effectiveness of the internal control system.

D.    Understanding The Real Residual Risk

IT auditors are help managers be good or great managers by understanding the real residual risk and taking the the appropriate action is related to it. One challenge in understanding the reality of residuals risk is to properly assess risk and controls holistically. First, some are not tendency by some to Overlook a manual control that has the potential to mitigate an IT-related risk. Second, a residual risk that exists in one area may be effective control in another area was addressed.

Reference:

T. S. (2014). The Core of IT Auditing. ISACA Journal,6.

B R Aditya et al 2018 IOP Conf. Ser.: Mater. Sci. Eng. 407 012164