Audit and Information Technology

Auditing in an advanced IT environment Introduction People often say that the advancement of information technology in today will be remembered as the greatest revolution of human history. That is, yes, bigger than the Industrial Revolution. Today’s business environment reflects accelerating technological advancement. Innovations in data processing help boost transaction volumes exponentially and technological advances in telecommunications have changed the way transactions are being initiated and conveyed. More and more firms now heavily rely on sophisticated computerized information systems. Today, effective use of technological advancement not only helps a firm run its business more efficiently than ever before but it also has become a requirement for a firm to stay competitive in the market place. Such an advance in information technology has also made a significant impact in auditing profession and changed the way audit is conducted fundamentally. Information technology had enabled auditors to use automated software packages in many areas by which an audit can be conducted more efficiently as well as effectively with less cost and time. However, IT poses danger and threat to auditors at the same time. With the increased dependence on computerized information system comes a great need for appropriate control systems to be in place to ensure that systems are operating properly and without error. An error created by a faulty system can ...