Information Technology Audit Research Articles

Towards an implementation framework for governance in the Ghanaian securities trading industry

Purpose The purpose of this paper is to propose an implementation framework for governance in the Ghanaian securities trading industry. Design/methodology/approach A qualitative research approach was followed, using participatory action research (PAR) by involving stakeholders from the Ghanaian securities trading industry. Findings A governance framework for the Ghanaian securities trading industry is proposed, taking into account the regulatory environment of Ghana, the role of ethical leadership, boards of directors, audit committees, the governance of risk, information technology and internal audit. Research limitations/implications This study used PAR because it is a recognised research methodology aimed at problem resolution, knowledge creation and improving professional practice, through the involvement of the interest group. This paper provides a starting point – a practical solution for the securities industry of Ghana, but not generalisable results. Practical implications Applying the governance framework will create safeguards against corruption and mismanagement, promote transparency in economic life and assist Ghana in attracting investment, ultimately lowering its cost of capital and contributing to economic growth and development in the country. Social implications The implementation of the governance framework will benefit all stakeholders (employees, suppliers and the community at large) as a result of a culture conducive to influencing behaviour, strategy planning and implementation, as well as corporate results and financial sustainability. Originality/value The use of PAR assists the practitioners from the Ghanaian securities trading industry in improving their competencies (knowledge, skills, values and attributes) whilst generating a workable solution for their current governance challenges.

AUDIT TEKNOLOGI INFORMASI DENGAN COBIT PADA SISTEM INFORMASI UNIVERSITAS METHODIST INDONESIA

Improving services in all fields in higher education is the main choice because it is closely related to stakeholder satisfaction, especially in the academic field. Information technology used in managing activities will determine the desired process and output. So it is necessary to evaluate and audit information technology to determine the achievement of performance or productivity. Universitas Methodist Indonesia has implemented Information Technology in managing academic activities ranging from new student registration to student graduation, lecturer and staff activities, research activities, and community service. COBIT is one of the tools used in auditing information systems and information technology. The audit is carried out on human resources related to system and technology management involving the Head of the Data Processing Center, Head of Administration and Information Services, Head of System Development Affairs, and Implementing Staff. To obtain data by making a questionnaire given to the audited party. From the test results on the effectiveness of the control, there is already a running control, namely PO8.1. Quality Management System, PO8.4. Customer Focus, PO8.5 Continuous Improvement, and PO8.6 Quality Measurement, Monitoring and Review, DS5.9. Malicious Software Prevention, Detection, and Correction need to be improved and continuously. Then the level of performance of the Detailed Control Objective (DCO) in the third party service management process still tends to be lacking and still needs to be improved, with the average performance value in the third party service management process being 1.5.

Evaluating IT Governance at Network Access Provider on COBIT 5 Domain EDM

Network Access Provider is a company engaged in the field of ICT (Information Communication Technology) where the main activities carried out in business are the provision of internet services to the Internet Service Provider (ISP), network integrators, content providers, and all support solutions in fields related to the internet and networks. This research was conducted to ensure that operations at Network Access Provider have been running and supports the goals optimally. The focus of this research is to help companies create optimal value from IT with a balance between realizing benefits and optimizing usage levels and resources. Researchers conduct library studies, observations, interviews, and conduct research analysis methods to get the actual value of the capability level of information systems and factors that influence information systems. Researchers use the COBIT 5 framework in the Evaluate, Direct, and Monitor (EDM) domains to conduct research on governance that works together around the world. COBIT 5 is an approved work or framework that is often used by auditors, especially in the information technology auditors section. COBIT 5 can be used as a tool to create information technology governance in a company. The results of this research contain information about IS deficiencies and the renewal of solutions for future improvements to the company.

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Use of information technologies in internal audit

The article reveals the essence and importance of internal audit in adding value to the organization and its stakeholders by assessing and providing recommendations for improving corporate governance, risk management and control, promoting economic efficiency, sustainable growth and financial stability. The main current trends in the development of internal audit on the use of modern technologies in auditing and the growing need for internal auditors to acquire knowledge and skills of IT technologies, work with big data, knowledge in the field of cybersecurity, analytical and critical thinking skills. Using the provisions of the International Standards for the Professional Practice of Internal Auditing, the functions of internal audit to assess the adequacy and effectiveness of controls in accordance with the risks in the field of information systems of the organization. It is emphasized that internal auditors must have sufficient knowledge of the key risks and controls of information technology, as well as technological audit methods, and some of them must have the competence of the auditor, whose main responsibility is the audit of information technology. The essence, evolution of the development of the concept of information technology audit, as well as its application in the management system of the business entity, are revealed. The classification of functional types of IT audits is covered, in particular: information security audit; IT quality audit; IT project audit; systems development audit; data analysis as part of the financial audit; audit of control measures; judicial audit. It is indicated that IT audit is a separate type of audit at the enterprise, and can also be part of the financial audit process. The advantages of using computer tools and technologies in the audit, which improves internal audit processes, as well as the need and prospects for the development of computerization in the audit, are considered.

THE EFFECT OF AUDITOR’S COMPETENCE AND INDEPENDENCE ON INFORMATION SYSTEM AUDIT QUALITY

Users of financial statements always rely on the results of audits conducted by competent andindependent auditors because the audits are carried out through quality processes and efforts. Competent and independent auditors are needed to obtain quality audit results. Because most modern information systems use information technology, the information technology audits become an important component in all external and internal audits. This study aims to examine the effect of auditor’s competence and auditor’s independence on the information systems audit quality. The research sample used in this study is external auditors working in public accounting firms in West Java. The statistical test instrument used is a multiple regression test. The results show that the auditor's competence has an effect on information systems audit quality, while the auditor’s independence has no effect on information systems audit quality.

An Examination of the Relationships Between Audit Automation and Performance Measurement Implementation in Government Internal Audits

This study examines the effects of audit automation such as the uses of Computer Assisted Audit Techniques on successful implementation and integration of performance measures into management of government internal audits. The researcher analyzed a survey of local government auditors in the USA. Results reveal that successful integration of performance measures into ongoing audit management is influenced by audit use of Computer Assisted Audit Techniques. Additionally, successful implementation and integration of performance measures into audit management are influenced by the use of audit time reporting system, presence of dedicated information technology audit staff, and posting audit reports on audit websites.

FEATURES OF IT-AUDIT PROJECTS AND SPECIFICS OF MANAGING THEM

In the conditions of rapid development of infrastructure and deepening of informatization of economic processes efficiency of enterprises’ activity, establishments and the organizations more and more depends on the information technologies used in control systems. Today, the environment of information technology as a structural component of the organization is a complex system that combines a variety of information, software, technical, human and other resources to achieve the goals of the organization, enterprise or institution. This, in turn, leads to a growth in the need to increase the efficiency and cost-effectiveness of information technology, increase the advantages and eliminate the disadvantages of their use, as well as justification of information technology costs. To meet this need, the regular use of information technology audit in the enterprise management system is becoming increasingly important. The analysis of works of domestic and foreign scientists and researchers in the field of IT audit and projects management of IT audit is executed. Features of IT audit projects are revealed. Based on the results of the analysis of the features of IT audit projects, their classification is carried out. Models, methods and mechanisms of IT audit project management are analyzed. Based on the analysis, their weaknesses are identified, the main problems and factors influencing their management are identified. It is determined that IT audit projects have unique IT risk factors, quality aspects, criteria and basis of evaluation, as well as dependence on major stakeholders. Tasks and goals of IT audit project management are formulated. Stages of implementation of IT audit projects, criteria of their formation, mechanisms and tools of their management are allocated. Features of products of IT audit projects, its characteristics and value criteria are considered. The main stakeholders of the IT audit project have been identified. The categories of IT risks inherent in IT audit projects are identified.

Study on the reliability assessment and early-warning method of online auditing based on the perspective of IT control

PurposeAn important issue in online auditing is how to improve the reliability of online auditing in order to reduce the overall audit risk. In this paper, a reliability assessment and early-warning method of online auditing based on RC (rank centroid), AHP (analytic hierarchy process) and GM (1,1) is proposed from the perspective of information technology (IT) audit risk control.Design/methodology/approachThe paper begins by structuring the AHP hierarchy to the reliability assessment of online auditing used in China. Then, RC is used to rank the importance of the assessment criteria. Pairwise comparisons of criteria are made based on the rank results of RC, and this leads to a matrix of comparisons. Next, the comparison matrices are translated into weights, and the reliability assessment and early-warning model of online auditing is constructed using the GM (1,1) model. A case illustration is given to analyze the application of this method.FindingsResearch results show that the reliability of the evaluation method designed in this paper is rigorous and effective. The reliability assessment and early-warning method of online auditing based on RC/AHP/GM (1,1) can assess and give an effective early warning of reliability changes in an online auditing system, which can meet the needs of current online auditing projects.Practical implicationsThe results of this study have good potential for widespread future implementation of online auditing projects.Originality/valueAn effective reliability assessment and early-warning method of online auditing is proposed from the perspective of IT audit risk control in this study.

Determinants of Information Technology Audit Quality: Evidence from Vietnam

The paper aims to investigate auditors, auditing firms and other external factors that affect quality of information technology audit in Vietnam. We conducted 2 types of data collections including direct and on survey. For direct survey, we sent directly to auditors at the training classes organized by State Securities Exchanges Commission. An online survey was established and Google doc link was provided to the Big4 and non-Big4 auditors. We received 138 survey responses in that 90 auditors came from Big4 and 48 auditors from non-Big4 firms. The data are analyzed using a factor analysis and compare means approaches to illustrate the potential IT audit quality factors and identify differences between two groups of auditors. The results show that independence and accounting knowledge and audit skills are the most important factors. And since external auditors perform many assurance services, the independence is critical. The result also shows that the auditors need to have enough competent and professional skills when conducting an audit, especially within an IT environment that requires high quality. The findings suggest a similar pattern of two groups in the context of Vietnam and some factors of auditors and auditing firms appear to have a statistically significant impact on quality of IT audit.

Audit Tingkat Kematangan Proses Internal Key Logistics System Menggunakan Kerangka Kerja Cobit 4.1 Pada Perusahaan Ekspedisi XYZ

The purpose of this study is to evaluate the level of IT maturity that occur in XYZ Shipping Company using COBIT 4.1 framework as a best practice in information technology audit. The company is highly depend on Key Logistics System as a core system in shipping process. For this reason, the company wants to focus on internal processes by increasing efficiency while minimizing costs, so COBIT IT Process was chosen: PO3, AI2, AI5, AI3, AI4, AI7, PO6, DS3, DS7, DS8, DS9, PO5, and DS6. An assessment was conducted on 26 Key Logistics System users as respondents. Stages of research to be carried out include: identification of the COBIT 4.1 process; data collection; measurement of current and target maturity levels; gap analysis; and preparation of recommendations. Result has shown that the average maturity score of the Key Logistics System is 3,50 or in maturity level 4 (managed). At this level the key logistics system process has been carried out and part of it has been standardized. However, results shows that there are some gaps below the target, such as IT Process PO5, AI2, and AI5 which have maturity level 3 (defined). In order to improve the maturity level, XYZ Shipping Company has to optimize the IT investement, application maintenance, and IT resources.

Information Technology Audit Quality: An Investigation of the Impact of Individual and Organizational Factors

ABSTRACTMajor news stories demonstrate the importance and vulnerability of information technology (IT), highlighting the need to understand how to reduce risk. This study investigates the key factors affecting IT audit quality (ITAQ), focusing on individual auditor and organizational factors. We utilize multiple approaches to understand professionals' general perceptions of ITAQ and results from specific audits. Our results suggest that the importance of IT audit quality factors differs between participants' general perceptions and those reported for specific IT audit experiences. Participants' general perceptions indicated that the most important factors for ITAQ were auditors' knowledge and skills, specifically IT and business process knowledge. By comparison, actual audit experiences suggest organizational factors as more important, specifically audit planning and the auditor-client relationship. We believe these differences between general perceptions and reported results suggest a potential opportunity to improve ITAQ via additional education and upfront development of the audit teams and processes.

Management and Information Technology Audit Using the COBIT 5 Framework at Archives and Library Department Bali Region

Management and Information Technology Audit Using the COBIT 5 Framework at Archives and Library Department Bali Region

EVALUASI TATA KELOLA SISTEM INFORMASI PENGELOLAAN DANA SEKOLAH

The Industrial Revolution 4.0, which is characterized by disruptive technology, demands the optimal use of information systems and information technology. In addition to being able to support the organization's business processes, information technology is certainly also free from all threats such as fraud, which means that there is a need for information technology audits. School X is an entity that requires an assessment of information technology audits because it manages school funds. So it is necessary to evaluate IT governance to find out the achievement of organizational maturity using the COBIT 5 framework which then provides recommendations to be taken into consideration in future IT management using the COBIT framework 5. This research focuses on the EDM process domain (evaluate, direct, and monitoring) and APO (align, plan, organise) with a qualitative descriptive approach. The results of this study indicate that the organization has reached maturity levels at level 1 (Performed Process), level 2 (Managed Process) and level 3 (Established Process) which means that the organization has implemented all EDM and APO domain processes at COBIT 5 except APO05 subdomains (managed portfolio) because the organization is nonprofit oriented, it is at level 0 (incomplete process). But it has not fully documented and communicated the process for organizational efficiency.

Kualitas Audit Teknologi Informasi dan Faktor-Faktor yang Mempengaruhinya

This study aims to determine what factors can affect the Quality of Information Technology Audit. In this paper will describe various studies related to IT Audit, Role of IT Audit, IT Audit Report content and IT Audit Quality. The results are known what factors can affect the Quality of IT Audit and the implications for knowing these factors

Effects of Information Technology (IT) on Internal Audit in Southwest Nigeria Universities

Abstract: This study examined the effects of information technology on internal audit in Southwest Nigeria Universities. Primary data were employed and questionnaires were distributed to the selected Universities. Out of 180 questionnaires, 152 questionnaires were filled and returned by the respondents. The study employed factor analysis and binary logit regression analysis as estimation techniques. The findings from factor analysis showed that Kaiser-Meyer-Olkin and Bartlett’s tests value was 0.786(78.6%) implying that the variables have a 78.6% variation in the data. The value of components variance revealed 62.750 on component 4 indicating that at component 4 there was 62.8% factor variation in the data. Nonetheless, the logit regression equation revealed that fraud discovery of IT (FD) has a positive and insignificant effect on internal audit. Also, IT effectiveness (ITE) revealed that ITE has a negative and significant effect on internal audit. Equally, asset recovery (AR) exhibited a negative and insignificant effect on internal audit. Furthermore, the external audit (EA) has a positive and insignificant effect on internal audit. This study concluded that a significant relationship exists between information technology and internal audit in Southwest Universities. It was recommended that Universities in Southwest should promote and encourage information technology in the internal audit department and also encourage the external users.

Internal Audit Role in Digital Zakat Finance: Case Study at a Zakat Institution in Indonesia

This study aims to get information about: 1) How is the implementation of digital zakat finance in Indonesia?; 2) Why do zakat institutions need the Internal Audit role in the implementation of digital finance zakat?. This study is motivated by the development of zakat collection systems such as digital zakat finance system that uses a digital platform. Along with the development of technology, the role of internal audit is also expected to be expanded to the aspect of information technology audit. Internal audit division faces several challenges regarding digital zakat finance. Internal audit division has to ensure the zakat institution already mitigate the significant risk related to digital zakat finance. This study is limited to the audit aspect related to zakat collection system in BAZNAS that used digital platforms such as bank transfer collection system and collection system that collaborated with e-commerce. To achieve the study’s aims, this study uses qualitative methods with literature study techniques that are reinforced by interviews.

Relationship between information technology auditors and auditees and their impacts on auditors

The audit is fundamental to the reputation of the organization and to maintain its investors’ confidence, because it asserts the conformity of financial statements with good accounting practices. Therefore, information technology (IT) auditors are indispensable, since IT is pervasive. IT auditing training focuses on technical skills. However, it appears that good relationships between IT auditors and auditees are crucial to carrying out an IT audit engagement. This phenomenological study is based on interpretative phenomenological analysis. It explores what IT auditors experience, feel, and live in the context of difficult relationships and disagreements with auditees, and how this difficulty impacts these auditors, their audit engagements, and their career. The results highlight five categories of pressures on IT auditors within the scope of audit engagement. Moreover, the results indicate that the experience of the IT auditor and the support from his or her superiors are two factors which have significant influence on how the pressures are experienced. The results also suggest that the pressures experienced affect the IT auditors morally and physically and can impact the auditor’s career ambitions.

IT General Controls Testing: Assessing the Effectiveness of User Access Management

ABSTRACT The verification of Information Technology (IT) controls is a core responsibility of IT auditors. This case places the student in the role of an IT auditor assigned to test the operating effectiveness of a specific IT general control: user access management. In addition to learning about IT controls, the case introduces several Excel functions such as VLOOKUP, MATCH, INDEX, and various text functions. The student documents the results of the IT controls tests by completing a testing matrix and writing a memo. General controls, user access management, and Excel applications are all topics taught in Accounting Information Systems (AIS) and Audit courses. As such, instructors can use this case at the undergraduate or graduate level in an IT Audit, Accounting Information Systems, or Audit class.

Study of information security, risk, audit and the role of law in Sri Lankan perspective

2010 was named as the Information Technology year in Sri Lanka. Our main attention was focused on whether our systems supported by Information Technology (IT) were safe from attacks. With the expansion of Information Technology most of the Sri Lankan organizations were driven by computerized information systems. With the vital role played by the Information Technology for its users it offers not only the benefits but also unchallengeable threats. These threats came in many forms such as data sabotage, destruction of systems and hacking offences. To address this issue both the IT professionals as well as the legal experts had come with their own solutions from time to time. The role played by the Information Technology Audit was focused through this paper. Through IT Audit the possible attacks to the systems could be identified. The role played by the legal experts in this regard was enacting the most recent Computer Crimes Act No 24 of 2007 which enable to bring security violators to the law. The research methodology adopted by this research was checking 75 information systems of Sri Lanka by a validated questionnaire. The questionnaire was presented to the system users and the feedback from them was taken as the results of this study. IT Audit also could be used as an evaluation tool in a research like this although this study limited its scope to adopt sampling method through questionnaire since the data was highly confidential. The findings were analyzed in order to come for conclusion which satisfied the implemented security level in information systems which were reviewed. Overall security of the information systems was satisfactory in terms of physical, logical and network security. Approaches that could be taken when a breach of security was there in terms of legal measures were also come under review.