APPLICATION OF TECHNOLOGY IN AUDITING FIELD

As in any business process, internal auditing is greatly enhanced by the strategic use of technology. Employing timesaving, work enhancing technology helps internal auditors complete the audit process faster and with more accurate results, thereby bringing more value to the customer and increasing customer satisfaction. In addition, an accelerated audit process and reporting cycle time, integrating technology into the audit process results in an expanded audit scope with increased findings. Integrating computer aided auditing techniques (CAATs) into the audit process and using technology to improve communication within the audit function and between auditors and their customers are two important ways to use technology to improve the audit process. Specific best practises with respect to technology include:

Using computer-assisted auditing techniques (CAATs) in conducting internal audits.

• Supporting internal audit’s risk-based, process-driven audit methodology using automated workflow tools.

• Ensuring that auditors, in liaison with the company’s IT Manager thoroughly test a new IT system for operational compatibility and security controls after it is installed.

• Assessing IT systems for past and potential security breaches.

• Relying on the newest security technology to protect IT systems from hacker intrusions.

The most important form of communication between internal auditors and the audit customers is the audit report. Strategically using technology to facilitate information exchange is another important aspect of communication. Technology-enhanced information exchange is crucial for knowledge sharing and organisational learning, which improves business process performance by leveraging individual knowledge, reducing duplicate work, and helping to eliminate the repetition of errors.
By designing the parameters of the audit report, writing effective audit report and facilitating knowledge sharing between the audit organisations, auditors can ensure higher customer satisfaction with the audit reporting process as well as the implementation of more recommendations. In addition, better knowledge sharing builds a more powerful internal audit organisation and a more successful company.

Specific best practises with respect to knowledge include:
• Ensuring audit reports are clearly written, concise and to the point.

• Strategically using technology to facilitate knowledge sharing and information exchange within the organisation and between internal audit and its customers.

To stay relevant and effective, successful internal audit departments continuously improve through re-engineering and total quality management efforts. Continuous improvement ensures that the audit process is aligned with the business process and that customers’ needs are being served in the most effective way possible. It shows that internal audit is committed to changing and adapting to new circumstances, both inside and outside.

Successful audit departments develop structured approaches to understanding, documentation and defining the audit process in order to lay the groundwork for enhancement and improvement. These approaches include reducing cycle time for creating and delivering audit reports, strategically using information technology to improve the audit process, developing co-sourcing arrangements with outside internal audit experts and consultants, and establishing continuous improvement teams.

Specific best practises with respect to continuous improvement include:
• Ensuring that information technology is strategically used to improve the audit process.
• Making sure that continuous improvement techniques are in place.

Developing and maintaining a quality assurance and improvement program that covers all aspects of internal audit activity and continuously monitors its effectiveness.