Preview

Information System

Powerful Essays
Open Document
Open Document
1514 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Information System
1.4.4 Information Systems for the Banking & Financial Sector: Audit is one of the major controls for monitoring management activities in the banks and financial institutions. In a computerized environment, IS audit is a very effective and necessary activity. Usually the IT implementation in the banking and financial organizations is done by adopting a mix of different methodologies – internal development and deployment and third party product development and deployment. In case of internally developed and deployed IT systems, IS audit will require to be done by a team of specially trained internal or external auditors. However, it is preferable to have the IS audit conducted with the help of suitable external agencies with the required skills and expertise to ensure independent nature of audit.
In case of development and deployment of the IT systems by third parties, the IS audit requires to be conducted by trusted auditor/s with skills and expertise, required for the purpose. IS audit assumes greater significance because a large number of critical and strategic financial operations in the banking and financial sector are wholly or partly being handled by the computerized systems.
There is a significant need for determining the role of IS in banks. This would assure the top manage- ment that the IS development is in the right direction. This would also help in exploring the intended and the real role of IS in banks. The knowledge of the real role of IS in banks would help IS managers in managing information systems by judging the business needs of the IS projects, associated risks, importance and ranking of IS managers in organizational hierarchy, need for innovation and flexibility in IS planning approach, etc. The IS practitioners may use the variables used here for self-evaluation and for deciding about the IS development. It has been well recognized that IS plays different roles in different industries. However, there is limited research examining the

You May Also Find These Documents Helpful

  • Good Essays

    Before any strategy takes place, an auditor must determine the end result desired from the Information Technology being used as well as the type of technology being dealt with. The most important thing is security thus it is vital to know this technology in and out to be able to determine its strengths and weaknesses. This allows for proper compensation to combat such attacks whether they are fraudulent or accidental in nature. It is necessary to be familiar with different types of proven viable internal control setups to properly test and gage an IT’s internal control system. There are three different strategies use when testing internal controls. First includes assessing the controls using user control information. In this strategy, an auditor would gather computer-generated reports and compare those to all documentation on specific transactions. This process is also known as auditing around the computer because it deals with more hard copy documents. The next strategy entails using application controls to determine the level of risk…

    • 627 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Information technology and financial audits primary objectives are to ensure data integrity, safety, secure and operational effectiveness for Kudler’s business processes. Internal audit will provide an opinion on the accuracy and fairness of the financial statements. “This fairness evaluation is conducted in the context of generally accepted accounting principles (GAAP) and requires application of generalized auditing standards” (Bargranoff, 2008).…

    • 986 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Recommendations were made to Kudler to implement CAATs into the auditing process. This implementation will be beneficial to the company as…

    • 1049 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Ho Yu ITGC

    • 1328 Words
    • 5 Pages

    FFC’s Internal Audit Department is involved as a voting member of the project teams. Internal audit performs post-implementation reviews on all projects over $2 million…

    • 1328 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Harley Davidson

    • 1637 Words
    • 7 Pages

    The process was largely reliant on teamwork, which played a leading role in structuring of the IS function. The organization, rather than having a Chief Information Officer, had a team of three directors to offer leadership on information systems integration. The three officers were given the responsibility to play internal consultant roles to the team engaged in identification of the appropriate software to meet the needs of the organization. Additionally, they provided direction regarding how well the technology will fit into the organization’s undertaking to create efficient business practices. The group had liberty to make technological investment decisions for the benefit of the organization. The group was considered to have more exposure to the needs of the business considering their day to day interaction with it.…

    • 1637 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    An operational audit gives a three dimensional perspective of a company. Financial statements can highlight a problem, but it cannot show how the problem began. The internal auditor can conduct interviews with essential personal to determine what changes are necessary. Additionally, an operational audit may uncover future problems while reviewing the effectiveness of current policies. Operational audits are beneficial because it can uncover problems early and fix them before they cause significant damage to the company’s financial health (Vos, 2001). The operational audit process lends itself to developing internal controls and evaluating the effectiveness of computer systems.…

    • 910 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    a. An audit is an independent examination of companies financial statements by an auditor. He then gives his opinion on whether the financial statements give a true and fair view in an audit report.…

    • 483 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    External auditing is essential to provide verification that the annual accounts by the firm provides a true and fair impression of the finances involved in the particular organization, ensuring that preparation of financial statements abide to the International Accounting Standards and other relevant accounting policies. The auditing is done by external auditors who are objective, independent and are knowledgeable to conduct an in-depth investigation to ensure that the financial statements are free from material forgeries and misstatements. External auditing is important as it ensures compliances, provides credibility, double checks internal audit and critique internal processes to enable improvement. (Jack, 2009)…

    • 3967 Words
    • 15 Pages
    Powerful Essays
  • Better Essays

    Auditing Research Paper

    • 1699 Words
    • 7 Pages

    “Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria” (Arens A., Elder R. J., Beasley M. S. 2010). Auditing of a company should be done by an independent person that has no affiliation with the company that is being audited. The auditor needs to be educated enough to process the audit.…

    • 1699 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Auditors Independence

    • 1310 Words
    • 6 Pages

    Auditing is the efficient critical examination done by one person or group of people’s independent from the system audited. To do an audit, confirmed information must be present and some standards by which the auditor can evaluate the information. Another is gathering and evaluating any information to determine whether the information being audited is identified in accordance with establish criteria to satisfy the purpose of the audit and also auditors must be competent to identify the types and amount of evidence to accumulate to reach the correct conclusion after the evidence has been examined and finally the preparation of the audit report, which is the communication of the auditor’s findings to user.…

    • 1310 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Bibliography: Kurt F. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, 2007, Internal Auditing: Assurance & Consulting services…

    • 2196 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Auditing is an independent, objective assurance & consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. Auditing is globally recognized. It is counter check to accounting data so that any error, mistake or fraud can be easily detected through the technique of auditing. It is the primary source of advice on efficiency, effectiveness and overall economy of an establishment. Auditing starts its journey where accounting end.…

    • 6792 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    Intosai Auditing Standards

    • 4190 Words
    • 17 Pages

    Auditing services have been changing rapidly over the last decade. Audit practices have been evolving in response to growing public expectations of accountability, and to the complexities in economic and technological advances being made in the organizations. An important recent development has been the challenge of globalization and the need for harmonization of financial reporting in facilitating the most efficient allocation of funds globally. Harmonization applies not only to the financial reporting standards applied in preparing financial statements but to the credibility attached by the audit process.…

    • 4190 Words
    • 17 Pages
    Powerful Essays
  • Best Essays

    2013

    • 3566 Words
    • 13 Pages

    This paper discusses the history, development and future of audit. It is divided into seven sections. Section one…

    • 3566 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Vendrzyk, V.P., Bagranoff, N.A. (2003) “ The evolving role of IS audit: a field of study comparing the perceptions of IS and financial Auditors” Advances in accounting, vol. 20 pp.141-163.…

    • 16864 Words
    • 68 Pages
    Powerful Essays

Related Topics