BAJAJ INSIGHT & TECHNOLOGIES PVT LTD
What is Information Systems (IS) Audit?
IS audit is a systematic process of objectively obtaining and evaluating evidence/information regarding the proper implementation, operation and control of information and the Information System resources.
Information systems are like a heart of an organization. The success of the organization is now majorly dependent upon its methodologies and their processes which can provide maximum competitive advantages in today’s competitive environment.
Why IS Audit?
The deployment of Information Technology in Broking institutions, both in the front and back office operations, has facilitated greater systemic efficiency in the Broking sector. It has, at the same time, introduced new areas of risk. Risk is inherent in the traditional activities. However, risk in a computerized and networked environment is multifarious such as operational risk, reputational risk, legal risk, credit risk, liquidity risk, etc. Let us have a look at few of them –
Here in such scenarios, Audit is one of the major controls for monitoring management activities. In a computerized environment, IS audit is a very effective and necessary activity. Hence IS audit will require to be done by a team of specially trained internal or external auditors. However, it is preferable to have the IS audit conducted with the help of suitable external agencies with the required skills and expertise to ensure independent nature of audit.
In case of development and deployment of the IT systems by third parties, the IS audit requires to be conducted by trusted auditor/s with skills and expertise, required for the purpose. IS audit assumes greater significance because a large number of critical and strategic financial operations in the broking & financial sector are wholly or partly being handled by the computerized systems.