Information management in auditing


Information management in auditing

With an increase in information in companies, there has been additional pressure on the audit procedure to ensure the information flow is free of fraud. Buchanan and Gibbs (2007) claim that “the information audit (IA) is central to the effective organisational management of information, however, there is

evidence from the field that the IA is neither fully accepted nor commonly practiced.” In an economy, where information is gradually becoming more important it cannot be the case that an audit will not focus on these processes. If we refer to the intra-organizational information systems, all parts of the value chain communicate with each other through information systems. This means that a transaction will be passed through different information systems and stored at different location. If we take an example of a bike manufacturer and its value chain. When an order is manufactured, this will be recorded in several information systems, like the operational, transaction-processing and financial information systems. It cannot be the case that when these systems communicate information, thus creating a flow of information, this will not be checked in an audit. This is also the conclusion of Buchanan and Gibbs (2007).

In the recent years, the focus has been placed on the flow of information, through the performance of an IT audit. For example, EY created a document about the ten key IT considerations for an internal audit. EY (2013) claims that “considerations related to information technology are central to any organization’s effort to ensure that issues are addressed quickly and thoroughly.” It is positive that audit firms also shift their focus to the IT side of a business. However, it also creates challenges since companies will need IT savvy employees, who are also interested in auditing to perform these audits and set a minimum standard

Buchanan, S. & Gibb, F. (2007), The information audit: Role and scope, International Journal of Information Management, p. 159-172

EY (2013), Ten key IT considerations for internal audit, http://www.ey.com/Publication/vwLUAssets/Ten_key_IT_considerations_for_internal_audit/$FILE/Ten_key_IT_considerations_for_internal_audit.pdf

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