Information System/Information Technology Audit

An information technology (IT) audit or information systems (IS) audit is an examination of the controls within an entity’s Information technology infrastructure. These reviews may be performed in conjunction with a financial statement audit, internal audit, or other form of attestation engagement. Formerly called an Electronic data processing (EDP) audit, an IT audit is the process of collecting and evaluating evidence of an organization’s information systems, practices, and operations. Obtained evidence evaluation can ensure whether the organization’s information systems safeguard assets, maintains data integrity, and is operating effectively and efficiently to achieve the organization’s goals or objectives. IT audits are also known as automated data processing (ADP) audits and computer audits.

Purpose

An IT audit is not entirely similar to a financial statement audit. An evaluation of internal controls may or may not take place in an IT audit. Reliance on internal controls is a unique characteristic of a financial audit. An evaluation of internal controls is necessary in a financial audit, in order to allow the auditor to place reliance on the internal controls, and therefore, substiantially reduce the amount of testing necessary to form an opinion regarding the financial statements of the company. An IT audit, on the other hand, tends to focus on determining risks that are relevant to information assets, and in assessing controls in order to reduce or mitigate these risks. An IT audit may take the form of a “general control review” or an “application control review”. Regarding the protection of information assets, one purpose of an IT audit is to review and evaluate an organization’s information system’s availability, confidentiality, and integrity by answering questions like:Will the organization’s computer systems be available for the business at all times when required? (Availability)

Will the information in the systems be disclosed only to authorized users? (Confidentiality) Will the information provided by the system always be accurate, reliable, and timely? (Integrity).

Types of IT

Systems and Applications: an audit to verify that systems and applications are appropriate to the entity’s needs, are efficient, and are adequately controlled to ensure valid, reliable, timely, and secure input, processing, and output at all levels of a system’s activity.

Information Processing Facilities: an audit to verify that the processing facility is controlled to ensure timely, accurate, and efficient processing of applications under normal and potentially disruptive conditions.

Systems Development: an audit to verify that the systems under development meet the objectives of the organization, and to ensure that the systems are developed in accordance with generally accepted standards for systems development.
Management of IT and Enterprise Architecture: an audit to verify that IT management has developed an organizational structure and procedures to ensure a controlled and efficient environment for information processing.

Client/Server, Telecommunications, Intranets, and Extranets: an audit to verify that controls are in place on the client (computer receiving services), server, and on the network connecting the clients and servers.

IT Audit Process

Main article: Information Technology Audit Process
The following are basic steps in performing the Information Technology Audit Process:
• Planning
• Studying and Evaluating Controls
• Testing and Evaluating Controls
• Reporting
• Follow-up

source: http://sisteminformasi.wordpress.com/2007/01/23/it-audit/