Technology Audits : How They Work

Audits here in America scare some people but in less developed countries its just another obstacle in the way from getting a shipment shipped quickly and cheap. The first reason audits are becoming less effective is because of fraud. Auditors have to going into a factory and try to find out whether or not that factory is using child labor and hiding it or by falsifying paper work that says they are old enough to work. A lot of the time workers lie about conditions for fear of being

Kudler Fine Food has expanded business and updated their computer systems to meet demands. As IT information is adopted within the organization, automation control processes has become more virtualized. To ensure that Kudler’s computerize systems function properly an audit must be performed on an annual basis. Management at Kudler Fine Foods wants to see the proposed audit schedules for all systems. Management wants to know the types of audit and how they will be conducted. In addition, management would like to know about events that might prevent reliance on auditing through the computer.

a. Describe the purpose of analytical procedures performed in the planning stage of the audit.

It is common industry knowledge that an audit plan provides the specific guidelines auditors must follow when conducting an external audit. External public accounting firms conduct external audits to ensure outside stakeholders that the company’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS) standards.

Think of it like an ongoing wellness program. A healthy network creates value with happier, more productive staff; fewer customer frustrations and increased returns on investment. Instead of making knee-jerk technology investments, a true Technology Management approach starts with an in-depth inspection. It follows with discussions about long term business objectives and includes details about the investments needed to achieve business goals. Like a gym membership and a healthy diet, once the upgrades are completed, monitoring and management continues the work of maintaining consistent health. Regular review meetings ensure that technology keeps pace with growth and changing objectives. The most competent vendors will include in these reviews detailed budgeting to remove surprises and assist in decision making well in advance of critical

Information technology (IT) has become increasingly sophisticated and complex, escalating the ongoing change within Kudler Fine Foods. As IT information is adopted within the organization, automation controls many processes within the Kudler’s environment. As Kudler has become more virtualized, a need for increased trust and assurance in the relationships with consumers, partners and suppliers. The swell of e-commerce business has created new ways of conducting an audit. Statement on Auditing Standard 94 (SAS 94) requires that the auditor understands the technological aspect of the organization in order to grasp the internal controls and the assessment of control risks for a proper audit

In addition, internal audit could aid Adius to gain better understanding and insight on how they can better redesign and implement their security plan based on findings and results of the internal audits. This way, Adius could make a better utilization of their readily available resources or acquire new ones in order to properly protect, guard or at least minimize risks that could potentially compromise the systems, information, processes, and assets in a well-rounded and efficient approach.

An audit can also help enhance operational effectiveness. Audits will help pinpoint various types of glitches and address the origin of any current coding

Use of due professional care, that is, whether the internal audit group has effective quality control

Once the assessment of the oversight is completed we have changes via process or procedures, or cost along with scheduling. We identify and rectify these areas for future projects to be better. Which will result in better cost, scheduling, vendor interaction and a better process flow chart.

The system/application domain consists of mission-critical systems, applications, and data. Common targeted systems and applications are operating systems (desktop, server, and network), e-mail applications and servers, Enterprise Resource Planning (ERP) applications and systems, and web browsers.

3) Chiesa, V., Coughlan, P. and Voss, C., (1996). Development of technical innovation audit. Journal of Product Innovation Management, 13 (2), 105

Another constructive way the audit is used is to ensure certain measures are present to support due diligence defence. Audits are usually carried out continuously to highlight any problems or issues that the business needs to deal with.

To fulfill the segregation of duties control objective, computer processing functions (like authorization of credit and billing) are separated.

According to the Institute of Internal Auditors (IIA), (2011), the internal auditing is a team of consultants, a department and a division or other practitioner which independent, have objective assurance and conduct a consulting activity which is designed to add value and improve the organization operations. The internal auditor can help an organization in achieving its objectives by bringing a discipline and systematic approach in order to improve and evaluate the effectiveness of risk management, control and governance process.