Businesses spend huge amounts of money on information technologies. And with an increased adoption of emerging technologies, we see a knock-on effect of introducing risk into the environment. To help combat these risks, an IT audit is a review or investigation of an organisation's IT systems, management, applications, operations, data use, and other related processes.
The necessity of conducting IT audits within an organisation comes from its role in supporting effective risk management, particularly regarding risks posed by weak security measures and controls. Data breaches and cyber-crime have escalated in response to the world’s digitalisation and are seen in all industry segments including Banking and Financial services (BFSI), Manufacturing, Oil and Gas, Pharmaceuticals, and many others. Even leading sports technology brand, Garmin, became a victim of hacking, thus proving that businesses, both large and small, are equally vulnerable to attack.
IT audits focus on the gamut of risks associated with a business as well as identifying and evaluating these risks with a view of implementing the proper controls needed to action them in the best way. An IT audit gives direction in understanding the measures that can eliminate or mitigate any issues using proper controls.
Organisations need to hire IT auditors who are experts in this subject. They analyse and conduct a company’s IT infrastructure risk assessment and aim to identify obstacles that prevent their organization from achieving compliance, maximising efficiency, and managing risk effectively. Should an auditor find an issue, they submit audit reports to the stakeholders, including recommended solutions and suggested changes to processes and systems. They must be unbiased and indifferent towards their work.
Several well-known organisations like ISACA, ISO, IIA, and ITIL have given practical and useful insights on Information Systems and Security Audits. These define requirements for the establishment, implementation, maintenance, and continual improvement of an Information Security and System. They also present a set of best practices for IT service management, giving guidance on the provision of quality IT services and the processes, functions, and other capabilities needed to support them.
1. Performance
2. Compliance to applicable standards, laws and policies
3. Financial statements audits
The audit first identifies any risks in a business and then assesses them using advanced design controls, thus allowing you to think of an appropriate solution to tackle those risks. When it comes to carrying out an IT audit, it’s typically done following the below steps:
1. Establish the objective
2. Develop an audit plan to achieve these objectives
3. Collect data and information for all relevant IT controls and evaluate them
4. Run tests and analyse the results
5. Report the findings
IT auditing can improve the reliability and efficiency of IT systems by covering a wide range of threats by regular identification and assessment of risks in an organisation. This gives organisations the opportunity to redesign or strengthen poorly designed or ineffective controls, thus leading to improved security of IT data. This in turn improves IT governance, as the overall IT management has a strong understanding of the controls, risks, and value of an organisation’s technological environment.
There are no hard-set rules regarding how often your organisation should perform an internal audit. If you wish to evaluate your management systems to determine whether processes and objectives are meeting company policies and regulatory compliance, you may have them performed on a quarterly basis or twice a year.
The rise of information technology usage is rapid and must be utilised for organisational success. Information (data) is a company's asset and its of upmost importance to maintain the integrity of this data to benefit from it.
Some of the world’s leading research and advisory companies like Gartner, Forrester and IDC have rightly said that the role of information technology (IT) control and audit has become a critical mechanism for ensuring the integrity of information systems (IS) and the reporting of an organisation’s finances to avoid and hopefully prevent future financial fiascos. They suggest developing capabilities and tools as well as enabling and training auditors to identify opportunities to deliver audit foresight.
Business and technology strategies are rapidly converging. In many instances, IT is no longer just an enabler of the business - it is the business. In a world where everything relies upon technology, IT audit methodology needs to change. The future of IT audit should align itself with IT’s new strategic role and to act as an adviser, not solely an auditor.