Abstract
Financial auditing cannot be imagined without the involvement of IT specialists since business processes are designed to be served by IT components such as ERP systems, online customer-facing applications, databases etc. Financial auditors therefore exposed to IT system and control reliance want to gain reasonable assurance that data and transactions stored in IT systems cannot be modified, access is controlled, and there is no suspicion of any fraud at business organizations. The paper tries to understand the current situation of IT audit involvement in financial auditing, interpret risks that parties face and provide some solutions by use of intelligent applications.
Highlights
Financial auditors want to make sure that relevant IT systems in the scope containing sensitive financial information support their work, the increasing number of cybercrime activities and IT systems with lack of appropriate controls makes the audit process more difficult, emerging the question how much they can rely on the system
Financial auditors have an immense obligation to express a fair opinion on organizations’ financial statements, with the increased digitalization techniques and complex information systems, other approaches should have been introduced in the process of financial auditing, as the spread of IT solutions caused convenience and automation of business processes but brought in many new risks into the life of organizations
The very first idea and the basics of artificial intelligence was detailed by McCulloch and Pitts (1943), in their publication they investigated the human nervous system and concluded that machines could work on the principles of the human brain, opening the door for recent machine learning systems with their publications, which is a subfield of artificial intelligence
Summary
Financial auditors want to make sure that relevant IT systems in the scope containing sensitive financial information support their work, the increasing number of cybercrime activities and IT systems with lack of appropriate controls makes the audit process more difficult, emerging the question how much they can rely on the system. Financial auditors have an immense obligation to express a fair opinion on organizations’ financial statements, with the increased digitalization techniques and complex information systems, other approaches should have been introduced in the process of financial auditing, as the spread of IT solutions caused convenience and automation of business processes but brought in many new risks into the life of organizations. To appropriately address these risks affecting the books and accounting, other experts are required to be involved in financial audits
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