The High 5 Advantages of IT Auditing

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IT auditors incessantly discover themselves educating the business group on how their work adds worth to an organization. Inner audit departments commonly have an IT audit element which is deployed with a transparent perspective on its role in an organization. Nevertheless, in our experience as IT auditors, the broader business neighborhood wants to understand the IT audit perform to be able to realize the utmost benefit. In this context, we’re publishing this brief overview of the precise benefits and added value provided by an IT audit.

To be particular, IT audits may cover a wide range of IT processing and communication infrastructure similar to client-server systems and networks, operating systems, security systems, software purposes, web companies, databases, telecom infrastructure, change administration procedures and disaster recovery planning.

The sequence of a normal audit starts with identifying risks, then assessing the design of controls and eventually testing the effectiveness of the controls. Skillful auditors can add value in every section of the audit.

Firms usually keep an IT audit perform to provide assurance on technology controls and to ensure regulatory compliance with federal or industry particular requirements. As investments in technology grow, IT auditing can present assurance that risks are controlled and that massive losses are usually not likely. A corporation may also determine that a high risk of outage, safety threat or vulnerability exists. There may additionally be necessities for regulatory compliance such as the Sarbanes Oxley Act or necessities that are specific to an industry.

Under we focus on five key areas in which IT auditors can add worth to an organization. Of course, the standard and depth of a technical audit is a prerequisite to adding value. The deliberate scope of an audit can be essential to the worth added. With no clear mandate on what enterprise processes and risks will be audited, it is hard to make sure success or added value.

So listed here are our prime 5 ways that an IT audit adds worth:

1. Reduce risk. The planning and execution of an IT audit consists of the identification and assessment of IT risks in an organization.

IT audits normally cover risks related to confidentiality, integrity and availability of information technology infrastructure and processes. Additional risks embrace effectiveness, efficiency and reliability of IT.

Once risks are assessed, there may be clear imaginative and prescient on what course to take – to reduce or mitigate the risks via controls, to transfer the risk by means of insurance or to easily accept the risk as part of the working environment.

A critical concept right here is that IT risk is business risk. Any risk to or vulnerability of crucial IT operations can have a direct impact on an entire organization. In brief, the organization must know the place the risks are after which proceed to do something about them.

Best practices in IT risk utilized by auditors are ISACA COBIT and RiskIT frameworks and the ISO/IEC 27002 customary ‘Code of follow for information security management’.

2. Strengthen controls (and enhance safety). After assessing risks as described above, controls can then be identified and assessed. Poorly designed or ineffective controls will be redesigned and/or strengthened.

The COBIT bodywork of IT controls is very useful here. It consists of four high stage domains that cover 32 management processes useful in reducing risk. The COBIT framework covers all aspects of data security together with control aims, key performance indicators, key aim indicators and demanding success factors.

An auditor can use COBIT to evaluate the controls in a company and make suggestions that add real value to the IT atmosphere and to the group as a whole.

One other management framework is the Committee of Sponsoring Organizations of the Treadmeans Commission (COSO) model of inner controls. IT auditors can use this bodywork to get assurance on (1) the effectiveness and effectivity of operations, (2) the reliability of financial reporting and (three) the compliance with applicable legal guidelines and regulations. The bodywork contains two elements out of 5 that directly relate to controls – management environment and management activities.

3. Adjust to regulations. Wide ranging laws on the federal and state ranges embrace specific necessities for data security. The IT auditor serves a critical function in guaranteeing that specific necessities are met, risks are assessed and controls implemented.

Sarbanes Oxley Act (Corporate and Prison Fraud Accountability Act) includes necessities for all public companies to ensure that internal controls are adequate as defined in the bodywork of the Committee of Sponsoring Organizations of the Treadmanner Commission’s (COSO) mentioned above. It is the IT auditor who offers the peace of mind that such necessities are met.

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