The tremendous increase in the importance and extent of information systems for all aspects of commerce and indus-try has made it imperative that businesses be able to ensure the accuracy and integrity of their accounting systems and corporate databases. Errors can result in loss of revenue and even exposure to legal liability.
Auditing involves the analysis of the security and accu-racy of software and the procedures for using it. For exam-ple, sample data can be extracted using automated scripts or other software tools and examined to determine whether correct and complete information is being entered into the system, and whether the reports on which management relies for decision making are accurate. Auditing is also needed to confirm that data reported to regulatory agencies meets legal requirements.
In addition to confirming the reliability of software and procedures, auditors must necessarily also be concerned with issues of security, since attacks or fraud involving computer systems can threaten their integrity or reliability (see computer crime and security). The safeguarding of customer privacy has also become a sensitive concern (see privacy in the digital age). To address such issues, the auditor must have a working knowledge of basic psychol-ogy and human relations, particularly as they affect large organizations.
Auditors recommend changes to procedures and prac-tices to minimize the vulnerability of the system to both human and natural threats. The issues of backup and archiving and disaster recovery must also be addressed (see backup and archive systems). As part accountant and part systems analyst, the information systems auditor represents a bridging of traditional practices and rapidly changing technology.
Auditing involves the analysis of the security and accu-racy of software and the procedures for using it. For exam-ple, sample data can be extracted using automated scripts or other software tools and examined to determine whether correct and complete information is being entered into the system, and whether the reports on which management relies for decision making are accurate. Auditing is also needed to confirm that data reported to regulatory agencies meets legal requirements.
In addition to confirming the reliability of software and procedures, auditors must necessarily also be concerned with issues of security, since attacks or fraud involving computer systems can threaten their integrity or reliability (see computer crime and security). The safeguarding of customer privacy has also become a sensitive concern (see privacy in the digital age). To address such issues, the auditor must have a working knowledge of basic psychol-ogy and human relations, particularly as they affect large organizations.
Auditors recommend changes to procedures and prac-tices to minimize the vulnerability of the system to both human and natural threats. The issues of backup and archiving and disaster recovery must also be addressed (see backup and archive systems). As part accountant and part systems analyst, the information systems auditor represents a bridging of traditional practices and rapidly changing technology.
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