In the paper “The Segregation of Duties: IT Audit’ the author analyzes the segregation of certain key duties. The basic idea underlying SOD is that no single employee should be in a position both to perpetuate and to conceal errors or fraud in the normal course of their duties…
Business Risks to Consider as IT Auditor in an Organization There are several factors to take into account when considering oneself being put in a position of risk as an IT auditor. “The challenges facing IT auditors today revolve around change—in technology, the business environment, business risks, the legislative and regulatory environment, and the knowledge and skills required to audit effectively in this evolving environment.”1 So, let us analyze in-depth every relevant angle that the IT auditor has to take into consideration. Changes in technology certainly influence what is going on in terms of how IT auditors are going to respond to that issue. For example, the advent of the iPad and the increased use of tablet PC’s has introduced a new monkey-wrench into the works. Generally, tablet PC’s that are not designed by Apple—as well as smartphones—have much fewer amounts of security features that are already built-in to the software, thus increasing the chances for black-hat (or malicious) hackers to be able to gain access to private information—such as bank account information like routing numbers, all the way down the line to Social Security numbers, birth dates, and all kinds of information. Social media is increasingly becoming profitable for criminals who prey upon peoples’ personal information via the route of the Internet. With the advent of Twitter—where people can have fake identities and use remotely-controlled Internet bots and bot-servers—the possibilities of where attacks could come from are endless. In addition, Facebook—which is known for its lack of privacy and security features—has many problems, the least of which may indeed be its privacy issues. For example, some forms of bullying are still considered acceptable by Facebook, and Facebook makes no effort to censor posts that are put upon the world’s largest social network. It has been suggested that Facebook hire auditors, which would put 8 million people to work—if one auditor was assigned to every 100 people who were users on Facebook. Because, according to current statistics, Facebook has 800 million users. That’s 11.43% of the world’s population. That means that there is about a 1 in 10 chance that any person at random on the planet is a Facebook user. That is huge! And, apparently, Facebook has been having difficulty keeping up with the way technology is rapidly changing. ...
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In the year 1991, the different principles of IAPC principles were recodified as ‘International Standards on Auditing’ (ISA). In the year 2001, a widespread evaluation regarding the IAPC was commenced and in the year 2002, it was re-established as the IAASB.
Inherent risk This is the likelihood of material misstatement of a claim before taking into consideration the client’s internal control. Factors that influence this arise from the nature of the consumers and its environment, or from the accounts nature.
However, the fact that the underlying principle in auditing is the concept of ‘opinion’, leaves the process of auditing with much to be desired, considering that conflict of interests or biased opinions have arisen from the auditing firms in relation to the truthfulness and accuracy of the transactions and financial reporting of their clients, eventually resulting to financial crisis, scandals and company failures that could eminently have been avoided, should the auditing reporting and opinion have been fair and balanced (Deloitte, 2012 p2).
This is emphasized by Kantian morality.
Immanuel Kant left behind a system of ethical philosophy, according to which an action which is both an end in itself and motivated by categorical imperative is the foundation of moral philosophy if moved by free elective will.
Furthermore, for much of the last century, racial, gender, ethnic, and religious minorities have been facing legal exclusion and unequal treatment. Until the second decade of the last century, even white women were legally deprived of the political rights and in many states, they could not enter certain occupational fields.
In April 2014 the European Parliament has voted for bringing mandatory auditor rotation into the EU region. European-listed companies, financial institutions, and banks will have to hire new auditors every 10 to 24 years. Appointment of a new auditor every decade can be extended in cases when companies appoint another audit firm.
Company maintains a warehouse store, wherein more sales are derived. After deducting variable and fixed expenses ,( based on $10 million revenue) earnings before income taxes , is an assumed value of $2.8
According to the Public Company Accounting Oversight Board’s (2015) findings, the reasonable assurance is obtained by an auditor by reducing the audit risk to an appropriately low level. The auditor achieves this by
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