History of Information Technology Auditing

Topics: Auditing, Audit, Financial audit Pages: 5 (1504 words) Published: February 8, 2011
Q1. collect & download from internet:
a) Different documents related 2 bizness-
1. Bill of lading
2. consignment note
3. invoice proforma
4. material requisition note
5. tender
6. bin card
7. store ledger

b) Rules & regulations relating to internal control of da CA of England & Wales. Q2. prepare a chart showing column wise description of the Audit of payments proforma(shown in da pic here): (plz show at least 7 items of payments.)

Q3. Describe showing in diagram the method of EDP Auditing. Explain in your own language. (min. 200 words) An EDP audit, is an examination of the controls within an Information technology (IT) infrastructure. The evaluation of obtained evidence determines if the information systems are safeguarding assets, maintaining data integrity, and operating effectively to achieve the organization's goals or objectives. These reviews may be performed in conjunction with a financial statement audit, internal audit, or other form of attestation engagement. EDP audits are also known as automated data processing (ADP) audits and computer audits. They were formerly called electronic data processing (EDP) audits. Purpose

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An EDP audit is different from a financial statement audit. While a financial audit's purpose is to evaluate whether an organization is adhering to standard accounting practices, the purposes of an EDP audit are to evaluate the system's internal control design and effectiveness. This includes but is not limited to efficiency and security protocols, development processes, and IT governance or oversight. The goal is to evaluate the organization's ability to protect its information assets and properly dispense information to authorized parties. The EDP audit's agenda may be summarized by the following questions: * Will the organization's computer systems be available for the business at all times when required? (Availability) * Will the information in the systems be disclosed only to authorized users? (Confidentiality) * Will the information provided by the system always be accurate, reliable, and timely? (Integrity) The EDP audit focuses on determining risks that are relevant to information assets, and in assessing controls in order to reduce or mitigate these risks. By implementing controls, the effect of risks can be minimized, but it cannot completely eliminate all risks. Types of EDP audits

Various authorities have created differing taxonomies to distinguish the various types of EDP audits. Goodman & Lawless state that there are three specific systematic approaches to carry out an EDP audit: * Technological innovation process audit. This audit constructs a risk profile for existing and new projects. The audit will assess the length and depth of the company's experience in its chosen technologies, as well as its presence in relevant markets, the organization of each project, and the structure of the portion of the industry that deals with this project or product, organization and industry structure. * Innovative comparison audit. This audit is an analysis of the innovative abilities of the company being audited, in comparison to its competitors. This requires examination of company's research and development facilities, as well as its track record in actually producing new products. * Technological position audit: This audit reviews the technologies that the business currently has and that it needs to add. Technologies are characterized as being either "base", "key", "pacing", or "emerging". Others describe the spectrum of EDP audits with five categories of audits: * Systems and Applications: An audit to verify that systems and applications are appropriate, are efficient, and are adequately controlled to ensure valid, reliable, timely, and secure input, processing, and output at all levels of a system's activity. * Information Processing Facilities: An audit to verify that the processing facility is controlled to ensure timely, accurate, and...
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