As stated, information system audit is just one of the important components of a financial audit. It is vital in the sense that data's found in the system or the system per se may be used in fraudulent or unintentional mistake that would have an enormous impact of the financial position of a company. On May 5, 2009, Westpac Bank of New Zealand erroneously deposited NZ$10M to a couple who were hoping that their request for a NZ$10,900 overdraft will be accepted. After the couple discovered their "newfound wealth" they had it transferred to an offshore account and then disappeared. It is for this purpose that IT auditing exists. Internal control was probably not in placed to detect the oversight that happened in this scenario which led to a NZ$10M loss.
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Due to the advancement of technology, accounting of various businesses was also automated; along with this is the need to change the auditing techniques. The main objective of this paper is to distinguish the relationship between information system auditing and financial auditing.
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It also includes profitability and protection of the company's assets. This exhibits that the internal control system should first of all meet the objective of accomplishing the company's operational goals and objectives. The second objective of an internal control system is to prepare a reliable and trustworthy financial reporting system.
al public and the accounting profession have had their differences over time on how the auditor should handle the process and what type of information should be reported by auditors to the users of the financial information. The difference between what the public and other
In other words, the procedures may be applied to compare financial information recorded and secured in past, to compare the actual results with initially developed forecasts and targets etc (Internet: allbusiness.com). Indeed, these
types: control tests-determine the accuracy of the internal controls and substantive tests-determine the fairness of the data in reflection to financial affairs of the organization (Alderson, 1993). Basically, this paper will provide guidelines or explanations on the importance
Auditors then study the internal control system of the organization when they finish identifying risks: this system is made of procedures that help to prevent errors, protect assets, and guarantee compliance with