Impact of

Information Techonlogy
on the
Audit Proccess
 Group List
Name ID No
Tamanna Tasnim 21-009
Nabila Ahmad 21-013
Antor Shaha 21-055
Fahimur Rahman 21-093
Md.Najmul Hasan 21-097
Habiba Ferduse 21-119
Antor Shaha
ID: 21-055
 How Information
Technologies Enhance
Internal Control
Integration of IT into Accounting System

Manual Computer
Control Control

Availability of
High Quality Information
 Assessing Risk of
Information Technology
Key Risk Specific to IT Environment

Reliance on functional capabilities of hardware

and software

Visibility of audit trail

Reduce human involvement

Systematic vs. Random error

Key Risk Specific to IT Environment

Unauthorized access

Loss of data

Reduced segregation of duties

Lack of traditional authorization

Need for IT experience

Tamanna Tasnim
ID: 21-009
 Internal Control
Specific to Information
Technologies
Two Broad Grouping for IT System
General Controls Application Controls
Administration of the IT Function
Input Controls
Segregation IT Duties

System Development Processing Controls

Physical & online Security

Output Controls
Back-up & Contingency Planning

Hardware Control
Administration of the IT Function

• The perceived importance of IT

General within an organization is often
dictated by the attitude of the
Controls board of directors and senior
management
 Segregation if IT Duties

Chief Information Officer or IT

Manager

Security
Administrator

Systems
Operations Data Control
Development
Habiba Ferduse
ID: 21-119
System Development

Typical test
strategies

Pilot testing Parallel testing

Physical & Online Security

Physical Online
Control
Control
Keypad entrances User ID control

Badge-entry systems Password control

Security cameras Separate add-on

security software

Security personnel
Back-up & Contingency Planning

Key to a backup and contingency plan

is to make sure that all critical copies
of software and data files are backed
up and stored off the premises
 Hardware Controls

Built in computer equipment by the

manufacturer to detect and report
equipment failures
Nabila Ahmad
21-013
Application Controls
Back-up & Contingency Planning

Financial
Total
Hash
Total
Record
Count
 Processing Controls

Validation test Sequence test

Data
Arithmetic
reasonableness
accuracy test
test

Completeness
test
 Output Controls

Detecting errors after processing

Review of data
Reconciliation
Comparison of units
Verification of data
Presentation
Fahimur Rahman
ID: 21-093
 Impact of Information
Technology on the Audit
Process
Effect of General & Application Control
Strength &
weakness of Effectiveness of
General General Control
Control Effects of Effects of IT
general controls on
controls on control risk and
control risk substantive tests

Auditing in
Auditing in less
more complex
complex IT
IT
environments
environments
Auditing
Audit around
through the
the Computer
Computer
Auditing through the Computer

Test Data Approach

Parallel Simulation

Embedded Audit Module Approach

Md.Najmul Hasan
ID: 21-097
Issues for Different
IT Environment
 IT Issues for Client

Network Database
Environments Mgt. Systems

Outsource IT
Clients

E-commerce
Systems
Thank You…