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Module 6 – Part 1An Overview of Information Systems Audit

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IntroductionToday computers perform much

of data processing required in both the private and public sectors of our economies.

Need to maintain the integrity of data processed by computers now seems to pervade our lives.

Fear of the substantially increased data-processing capabilities are not well controlled – computer abuse.

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IntroductionConcerns with the privacy of data

exchange with organizations. E.g. tax department, medical authorities.

Uncontrolled use of computers can have a widespread impact on a society. E.g. inaccurate information causes

misallocation of resources within the economy and fraud can perpetrated because of inadequate system controls.

Those who suffer most often are those who can least afford to suffer.

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Need for control & Audit of computersComputers are used extensively

to process data and to provide information for decision making.

Rapid decrease in the cost of computer technology , widespread availability of powerful microcomputers and their associated packaged software – resulted in the extensive use of computers in the workplace and at home.

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Need for control & Audit of computersSeven major reasons for establishing a

function to examine controls over computer-based data processing.

Costs of incorrect decision making

Costs of computer

Abuse

Organization costs of data loss

Value of hardware, software, personnel

High costs of

computer error

Maintenance of

privacyControlled evolution

of computer

useORGANIZATIONS

Control and audit of

computer-based information

system