Ict Controls on Auditing Practice

African Journal of Business Management Vol. 5(9), pp. 3523-3539, 4 May, 2011
Available online at http://www.academicjournals.org/AJBM
DOI: 10.5897/AJBM10.1047
ISSN 1993-8233 ©2011 Academic Journals

Full Length Research Paper

The impact of information technology on internal
auditing
M. Krishna Moorthy1*, A. Seetharaman2 Zulkifflee Mohamed3, Meyyappan Gopalan4 and
Lee Har San5
1

Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Perak Campus, 31900, Kampar,
Perak D.R., Malaysia.
2
S. P. Jain Center of Management, Singapore.
3
Faculty of Business Administration, Universiti Tun Abdul Razak, PINTAR Campus, 16-1,Jalan SS6/12, 47301 Petaling
Jaya, Selangor Darul Ehsan, Malaysia.
4
Faculty of Management, Multimedia University, Cyberjaya, Malaysia.
5
School of Accounting and Finance, Legenda Education Group, Negeri Sembilan, Malaysia.
Accepted 21 January, 2011

This paper evaluates the role of information technology and how it affects internal audit process in the
organization. The study also stresses on the global trend of adopting IT system (software/ hardware) in
producing a more controlled environment in delivering the auditing process. It also constitutes on how
IT affects internal control (control environment, risk assessment, control activities, information and
communication and monitoring) and provides guidelines and best practices in evaluating techniques
available to effectively perform auditing tasks internally. It also addresses how technology, Information
system (IS) and electronic data processing (EDP) have changed the way organizations conduct its
business, promoting operational efficiency and aid decision-making. It also spotlights many aspects of
IT risks and controls and highlights whether the right people are overseeing IT risks to the degree they
should. It demonstrates the impact of technology convergence on the internal control mechanism of an
enterprise. It emphasizes that the auditor also has a...