The relation between Internal audit and Technology

If you understand Internal audits, it is designed to assess the effectiveness of organisation’s internal controls. They first gather information about how a unit operates, identifying points at which errors or inefficiencies are possible. It then identifies system controls which are designed to prevent / detect such occurrences. Further, the performance of those controls is tested to check how well they work. Internal audit is required to constantly check the effectiveness of the system.??

Information technology, IT, provides most of the information needed for auditing. In order to be effective, auditors must use IT as an auditing tool, audit automated systems and data, to understand the business purposes for the systems, and understand the environment in which the systems operate.?

The other important uses of IT by auditors are in audit administration. By seeking new use for computers and communications, auditors improve their ability to review systems and information and manage their activities more effectively. Automated tools help in increasing individual productivity. By recognising the importance of the emerging environment and requirement to perform audit tasks effectively, auditors must recognise the key reasons to use audit tools and software.

If you can see, the relation of technology and Internal Audit is like that of air and human body, without which a human cannot survive. There is no denial that IA has huge dependency on technology, especially in this ever expanding market and growing size of operations.?

Technology is changing overnight, and this is not even an exaggeration. New systems, new tools, now frauds, new viruses keep coming up every few days, if not everyday.?

So how should IA keep up with the change?

Whether to take the changing and advancing technology as a challenge or opportunity is in the hands of the professionals. It will depend on the pace with which the industry can adapt to the change and move forward.?

Professionals have raised concerns as “ Can Internal audit keep up with the change?”

That’s the question that only time can answer.?