The Top 5 Benefits of This specific Auditing
- April 20, 2017
- Posted by: marlenedubois
- Category: Home Health Aide Training
This specific auditors frequently find themselves educating the business community on how their work adds value to an organization. Internal audit departments commonly have an This specific audit component which is actually deployed using a clear perspective on its role in an organization. However, in our experience as This specific auditors, the wider business community needs to understand the This specific audit function in order to realize the maximum benefit. In This specific context, we are publishing This specific brief overview of the specific benefits along with added value provided by an This specific audit.
To be specific, This specific audits may cover a wide range of This specific processing along with communication infrastructure such as client-server systems along with networks, operating systems, security systems, software applications, web services, databases, telecom infrastructure, change management procedures along with disaster recovery planning.
The sequence of a standard audit starts with identifying risks, then assessing the design of controls along with finally testing the effectiveness of the controls. Skillful auditors can add value in each phase of the audit.
Companies generally maintain an This specific audit function to provide assurance on technology controls along with to ensure regulatory compliance with federal or industry specific requirements. As investments in technology grow, This specific auditing can provide assurance of which risks are controlled along with of which huge losses are not likely. An organization may also determine of which a high risk of outage, security threat or vulnerability exists. There may also be requirements for regulatory compliance such as the Sarbanes Oxley Act or requirements of which are specific to an industry.
Below we discuss 5 key areas in which This specific auditors can add value to an organization. Of course, the quality along with depth of a technical audit is actually a prerequisite to adding value. The planned scope of an audit is actually also critical to the value added. Without a clear mandate on what business processes along with risks will be audited, This specific is actually hard to ensure success or added value.
So here are our top 5 ways of which an This specific audit adds value:
1. Reduce risk. The planning along with execution of an This specific audit consists of the identification along with assessment of This specific risks in an organization.
This specific audits usually cover risks related to confidentiality, integrity along with availability of information technology infrastructure along with processes. Additional risks include effectiveness, efficiency along with reliability of This specific.
Once risks are assessed, there can be clear vision on what course to take – to reduce or mitigate the risks through controls, to transfer the risk through insurance or to simply accept the risk as part of the operating environment.
A critical concept here is actually of which This specific risk is actually business risk. Any threat to or vulnerability of critical This specific operations can have a direct effect on an entire organization. In short, the organization needs to know where the risks are along with then proceed to do something about them.
Best practices in This specific risk used by auditors are ISACA COBIT along with RiskIT frameworks along with the ISO/IEC 27002 standard ‘Code of practice for information security management’.
2. Strengthen controls (along with improve security). After assessing risks as described above, controls can then be identified along with assessed. Poorly designed or ineffective controls can be redesigned along with/or strengthened.
The COBIT framework of This specific controls is actually especially useful here. This specific consists of four high level domains of which cover 32 control processes useful in reducing risk. The COBIT framework covers all aspects of information security including control objectives, key performance indicators, key goal indicators along with critical success factors.
An auditor can use COBIT to assess the controls in an organization along with make recommendations of which add real value to the This specific environment along with to the organization as a whole.
Another control framework is actually the Committee of Sponsoring Organizations of the Treadway Commission (COSO) design of internal controls. This specific auditors can use This specific framework to get assurance on (1) the effectiveness along with efficiency of operations, (2) the reliability of financial reporting along with (3) the compliance with applicable laws along with regulations. The framework contains two elements out of 5 of which directly relate to controls – control environment along with control activities.
3. Comply with regulations. Wide ranging regulations at the federal along with state levels include specific requirements for information security. The This specific auditor serves a critical function in ensuring of which specific requirements are met, risks are assessed along with controls implemented.
Sarbanes Oxley Act (Corporate along with Criminal Fraud Accountability Act) includes requirements for all public companies to ensure of which internal controls are adequate as defined inside framework of the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) discussed above. This specific is actually the This specific auditor who provides the assurance of which such requirements are met.
Health Insurance Portability along with Accountability Act (HIPAA) has three areas of This specific requirements – administrative, technical along with physical. This specific is actually the This specific auditor who plays a key role in ensuring compliance with these requirements.
Various industries have additional requirements such as the Payment Card Industry (PCI) Data Security Standard inside credit card industry e.g. Visa along with Mastercard.
In all of these compliance along with regulatory areas, the This specific auditor plays a central role. An organization needs assurance of which all requirements are met.
4. Facilitate communication between business along with technology management. An audit can possess the positive effect of opening channels of communication between an organization’s business along with technology management. Auditors interview, observe along with test what is actually happening in reality along with in practice. The final deliverables by an audit are valuable information in written reports along with oral presentations. Senior management can get direct feedback on how their organization is actually functioning.
Technology professionals in an organization also need to know the expectations along with objectives of senior management. Auditors help This specific communication by the top down through participation in meetings with technology management along with through review of the current implementations of policies, standards along with guidelines.
This specific is actually important to understand of which This specific auditing is actually a key element in management’s oversight of technology. An organization’s technology exists to support business strategy, functions along with operations. Alignment of business along with supporting technology is actually critical. This specific auditing maintains This specific alignment.
5. Improve This specific Governance. The This specific Governance Institute (ITGI) has published the following definition:
‘This specific Governance is actually the responsibility of executives along with board of directors, along with consists of the leadership, organizational structures along with processes of which ensure of which the enterprise’s This specific sustains along with extends the organization’s strategies along with objectives.’
The leadership, organizational structures along with processes referred to inside definition all point to This specific auditors as key players. Central to This specific auditing along with to overall This specific management is actually a strong understanding of the value, risks along with controls around an organization’s technology environment. More specifically, This specific auditors review the value, risks along with controls in each of the key components of technology – applications, information, infrastructure along with people.
Another perspective on This specific governance consists of a framework of four key objectives which are also discussed inside This specific Governance Institute’s documentation:
*This specific is actually aligned with the business *This specific enables the business along with maximizes benefits *This specific resources are used responsibly *This specific risks are managed appropriately
This specific auditors provide assurance of which each of these objectives is actually met. Each objective is actually critical to an organization along with is actually therefore critical inside This specific audit function.
To sum up, This specific auditing adds value by reducing risks, improving security, complying with regulations along with facilitating communication between technology along with business management. Finally, This specific auditing improves along with strengthens overall This specific governance.
ISACA. Control Objectives for Information along with related Technology (COBIT).
ISO/IEC 27002 Code of practice for information security management.
Committee of Sponsoring Organizations of the Treadway Commission (COSO) Framework.