WHAT ARE THE AREAS COVERED IN COMPUTERIZED AUDITING
Computerized auditing, also known as IT auditing or automated auditing, involves using technology to assess the controls and systems within an organization. It covers various areas to ensure the accuracy, integrity, and security of financial information and data. The key areas covered in computerized auditing include:
1. General IT Controls: These controls refer to the management and use of technology infrastructure, including networks, operating systems, and data center operations. They ensure the reliability and security of IT systems, such as access controls, change management, and backup and recovery procedures.
To assess general IT controls, auditors typically review system documentation, perform walkthroughs of processes, and test controls to identify any vulnerabilities or weaknesses.
2. Application Controls: These controls specifically focus on the design and operation of individual application systems, such as financial accounting software, enterprise resource planning (ERP) systems, or customer relationship management (CRM) systems. Application controls help ensure data accuracy, completeness, and validity.
Auditors typically review configuration settings, examine user access controls, and perform data integrity tests to determine the effectiveness of application controls.
3. Data Analytics: Computerized auditing also utilizes data analytics techniques to analyze large volumes of financial and operational data. This involves using advanced software tools to identify patterns, anomalies, and trends that may indicate potential risks or errors.
Auditors may use techniques like data mining, statistical analysis, and visualization to identify potential control weaknesses, fraud, or non-compliance issues.
4. Cybersecurity and Data Privacy: With the increasing risk of cyber threats and data breaches, computerized auditing includes assessing an organization's cybersecurity controls and data privacy measures. This involves reviewing policies and procedures related to access controls, encryption, incident response, and data protection.
Auditors may conduct vulnerability assessments, penetration testing, and review security logs to identify potential vulnerabilities or security incidents.
5. IT Governance: Computerized auditing also examines an organization's IT governance framework, including the alignment of IT with strategic goals, IT investment decisions, and IT project management processes.
Auditors may review governance structures, policies, and procedures to assess the effectiveness of IT governance in supporting the organization's objectives.
Overall, computerized auditing covers a broad range of areas to ensure the reliability, security, and effectiveness of an organization's IT systems and processes. Auditors utilize a combination of techniques, tools, and methodologies to assess controls, identify risks, and provide recommendations for improvement.