Information Systems Auditing Flashcards

Flashcards for Information Systems Auditing Review

Information Systems

Combination of strategic, managerial, and operational activities including hardware, software, communication tools, and output mechanisms.

Scope of IS Audit

Encompasses both IT infrastructure and business processes, focusing on their interactions.

Role of Auditor

Analyze the interaction between IT systems and business processes to evaluate risks and controls.

Purpose of IS Audit

Ensuring compliance, verifying governance, maintaining CIA (Confidentiality, Integrity, Availability), and assessing IT process efficiency.

Audit Process Phases

Planning, fieldwork/documentation, and reporting/follow-up.

Scope of IS Audit

IT systems and related business processes.

Role of an Auditor

Using a structured and evidence-based approach.

ISACA Standards

Define mandatory requirements for IS auditing to ensure consistent and professional conduct.

Guidelines

Provide implementation advice and flexibility for specific audit scenarios.

IS Audit Functions

Enhance IT governance and compliance with strategic objectives and identify risks.

ISACA Code of Professional Ethics

Maintain confidentiality, integrity, and objectivity, avoiding conflicts of interest.

General Standards

Apply to ethics, independence, objectivity, due care, knowledge, competency, and skill.

Performance Standards

Deal with how audits are conducted, including planning, scoping, and evidence collection.

Reporting Standards

Focus on types of reports, communication of findings, and information provided to stakeholders.

Standards

Mandatory and define what must be done during audits ensuring consistency.

Guidelines

Advisory and provide implementation support for standards allowing flexibility

Ethics

Define how auditors must conduct themselves professionally, focusing on integrity and confidentiality.

IS Internal Audit Function

Provides IT-related control assurance within financial and operational contexts.

Audit Charter

Documents management’s responsibilities and objectives for the IS audit function.

Role of an Auditor

Operates independently and contributes value to business processes.

Responsibilities of the IS Auditor

Ensuring no conflicts of interest, communicating audit scope, and reviewing work.

IS Audits

Verify data security, integrity, and availability and ensure controls align with organizational goals.

Financial Audits

Focus on the accuracy of financial reporting and compliance.

Operational Audits

Assess efficiency and effectiveness of processes.

Control Self-Assessment (CSA)

Involves process owners evaluating controls and risks for their areas.

Integrated Auditing

Combines multiple disciplines for a comprehensive review, focusing on identifying risks across processes and systems.

Inherent Risk

Risk without controls.

Control Risk

Risk of control failure.

Detection Risk

Risk of auditor missing issues.

Materiality

Determines the importance of findings based on potential impact on business decisions.

Risk-Based Audit Planning

Prioritize audit areas based on the level of risk they present to the organization.

Risk Assessment

Identifies, quantifies, and prioritizes risks to determine management actions and control priorities.

Internal Controls

Policies and procedures designed to ensure business objectives are met.

Preventative Controls

Avoid risks.

Detective Controls

Identify issues.

Corrective Controls

Fix issues.

Compensating Controls

Offset deficiencies in other controls.

Control Objectives

Define what needs to be achieved.

Control Measures

Specific activities to implement control objectives.

Managerial Controls

Oversight and reporting.

Technical Controls

Technology driven.

Physical Controls

Prevent unauthorized access.

Control Monitoring

Ensures controls are being followed and remain effective.

Plan the audit engagement

Define objectives and allocate resources.

Building the audit plan

Chart activities with timelines and resource optimization.

Executing the plan

Perform the audit procedures including control testing.

Monitor project activity

Track progress and address challenges.

Audit Objectives

Align audit objectives with organizational goals.

Planning Phase

Determine objectives, scope, and resources.

Fieldwork and Documentation Phase

Collect evidence, test controls, and validate results.

Reporting Phase

Communicate findings and follow up remediation.

Audit Programs

A structured set of steps for conducting an audit.

Compliance Testing

Validate control effectiveness.

Substantive Testing

Verify data accuracy and completeness.

Statistical Sampling

Uses probability models for selection.

Non-Statistical Sampling

Relies on audit judgment for selection.

Incorrect Acceptance

Undetected material weakness.

Incorrect Rejection

False-positive assessment of material weakness.

Direct Audit Evidence

Observations and management interviews.

Documentary Audit Evidence

Material retrieved from organizational records.

Third-Party Audit Evidence

Result from independent third-party assessments.

Sufficient Audit Evidence

Enough to support audit conclusions.

Reliable Audit Evidence

Collected from credible sources.

Relevant Audit Evidence

Directly aligned with audit objectives.

Audit Data Analytics

Analyze large datasets to uncover trends and anomalies.

CAATs (Computer-Assisted Audit Techniques)

Automate data collection and analysis during audits.

Continuous Auditing

Evaluate processes and controls in real-time.

Role of Auditor

Evaluate AI tool effectiveness in auditing processes.

Continuous auditing

Evaluate processes and controls in real-time – identifies issues before escalation.

AI in audits

Automate repetitive tasks (e.g. data entry, pattern detection) – enhances decision making with predictive analytics.

Audit Reports Components

Summary of findings and conclusions.

Ensure reports

Verify that data is clear, concise and aligned to organizational goals.

Purpose of Audit Documentation

Serves as the basis for audit conclusions.

Follow-Up Activities

Verify that corrective actions are implemented effectively.

Quality Assurance and Improvements in Audit

Improve quality of the audit process and meet organizational and regulatory standards.

Purpose of Audit Documentation

Provides a record to justify audit conclusions

Physical Evidence

Observations and inspections.

Documentary Evidence

Records contracts and procedures.

Analytical Evidence

Matrices, dashboards, and trend analyses.