Technology plays a major role in facilitating all functions of business in this era, not just in transaction capturing and processing but even in lesser known areas like Corporate Governance and Risk Management.
The effectiveness of an information system’s controls is evaluated through an information systems audit. An audit aims to establish whether information systems are safeguarding corporate assets, maintaining the integrity of stored and communicated data, supporting corporate objectives effectively, and operating efficiently. It is a part of a more general financial audit that verifies an organisation’s accounting records and financial statements. Information systems are designed so that every financial transaction can be traced. In other words, an audit trail must exist that can establish where each transaction originated and how it was processed.
Information System Audit encompasses a comprehensive review and evaluation of automated information processing systems, related non-automated processes and the interface between them.