Information Technology

GTAG 16 - Data Analysis Technologies

The IIA has released a practice guide entitled “GTAG 16: Data Analysis Technologies.” This guide aims to help CAEs understand how to move beyond the tried and true methods of manual auditing toward improved data analysis using technology. After reading this guide, you will:

• Understand why data analysis is significant to your organization.
• Know how to provide assurance more efficiently with the use of data analysis technology.
• Be familiar with the challenges and risks that you will face when implementing data analysis technology within your department.
• Know how to incorporate data analysis at your organization through adequate planning and appropriate resource structures.
• Recognize opportunities, trends, and advantages of making use of data analysis technology.

To further assist CAEs and other individuals who use this guide, we also have included a detailed example of the application of data analytics to procurement control activities in Appendix A. Consistent with where most data analysis starts, these examples are largely focused on simple data matching and reperformance of automated system functionality used in providing assurance.

GTAG 15 - Information Security Governance

Information is a significant component of most organizations’ competitive strategy either by the direct collection, management, and interpretation of business information or the retention of information for day-to-day business processing. Some of the more obvious results of IS failures include reputational damage, placing the organization at a competitive disadvantage, and contractual noncompliance. These impacts should not be underestimated.

This GTAG will provide a thought process to assist the CAE in incorporating an audit of information security governance (ISG) into the audit plan, focusing on whether the organization’s ISG activity delivers the correct behaviors, practices, and execution of IS.

GTAG 15: Information Security Governance will assist efforts to:

• Define ISG.
• Help internal auditors understand the right questions to ask and know what documentation is required.
• Describe the internal audit activity’s (IAA) role in ISG.

GTAG 14 - Auditing User-developed Applications

Almost every organization uses some form of UDAs because they can be more easily developed, are less costly to produce, and can typically be changed with relative ease versus programs and reports developed by IT personnel. However, once end users are given freedom to extract, manipulate, summarize, and analyze their UDA data without assistance from IT personnel, end users inherit risks once controlled by IT. These risks include data integrity, availability, and confidentiality. Because management relies on UDAs, which can be a significant part of financial reporting and operational processes, as well as related decision making; the internal auditor must determine and review UDA risks and build an audit of UDAs into the annual internal audit plan as appropriate.

GTAG 14: Auditing User-developed Applications provides:

• Direction on how to scope an internal audit of UDAs.
• Guidance for how the internal auditor’s role as a consultant can be leveraged to assist management with developing an effective UDA control framework.
• Considerations that internal auditors should address when performing UDA audits.A sample UDA process flow as well as a UDA internal audit program and supporting worksheets to help internal auditors organize and execute an audit. 

GTAG 13 - Fraud Prevention and Detection in an Automated World

As technology advances, so do schemes to commit fraud. Therefore, technology can not only be used to perpetrate fraud, but also to prevent and detect it. Using technology to implement real-time fraud prevention and detection programs will enable organizations to reduce the cost of fraud by lessening the time from which a fraud is committed to the time it is detected. Considering this, it is crucial that auditors stay ahead of fraudsters in their knowledge of technology and available tools. This GTAG focuses on IT related fraud risks and risk assessments and how the use of technology can help internal auditors and other key stakeholders within the organization address fraud and fraud risks.

Through a step-by-step process for auditing a fraud prevention program, an explanation of the various types of data analysis to use in detecting fraud, and a technology fraud risk assessment template, the GTAG aims to inform and provide guidance to chief audit executives and internal auditors on how to use technology to help prevent, detect, and respond to fraud. The GTAG also supplements The IIA’s practice guide, Internal Auditing and Fraud, and informs CAEs and internal auditors on how to use technology to help prevent, detect, and respond to fraud.

GTAG 12 - Auditing IT Projects

Whether IT projects are developed in house or are co-sourced with third-party providers, they are filled with challenges that must be considered carefully to ensure success. Insufficient attention to these challenges can result in wasted money and resources, loss of trust, and reputation damage. Early involvement by internal auditors can help ensure positive results and the accompanying benefits. They can serve as a bridge between individual business units and the IT function, point out previously unidentified risks, and recommend controls for enhancing outcomes.

Auditing IT Projects provides an overview of techniques for effectively engaging with project teams and management to assess the risks related to IT projects. This GTAG includes:

• Key project management risks.
• How the internal audit activity can actively participate in the review of projects while maintaining independence.
• Five key components of IT projects for internal auditors to consider when building an audit approach.
• Types of project audits.
• A suggested list of questions for use in the IT project assessment.

GTAG 11 - Developing the IT Audit Plan

Results from several IIA external quality assessment reviews reveal that developing an appropriate IT audit plan is one of the weakest links in internal audit activities. Many times, internal auditors simply review what they know or outsource to other companies, letting them decide what to audit.

To this end, Developing the IT Audit Plan can help CAEs and internal auditors:

• Understand the organization and how IT supports it.
• Define and understand the IT environment.
• Identify the role of risk assessments in determining the IT audit universe.
• Formalize the annual IT audit plan.

This GTAG also provides an example of a hypothetical organization to show how to execute the steps necessary to define the IT audit universe.

GTAG 10 - Business Continuity Management

This GTAG focuses on how business continuity management (BCM) is designed to enable business leaders to manage the level of risk the organization could encounter in the case of a natural or man-made disruptive event that affects the extended operability of the organization.

Although most executives are likely to agree that BCM is a good idea, many will struggle to find the budget necessary to fund the program as well as an executive sponsor that has the time to ensure its success. Business Continuity Management will help the CAE communicate business continuity risk awareness and support management in its development and maintenance of a BCM program.

The guide includes:

• Disaster recovery planning for continuity of critical information technology infrastructure.
• Business application systems.

GTAG 9 - Identity and Access Management

Identity and access management (IAM) is a cross-functional process that helps organizations to manage who has access to what information over a period of time. Poor or loosely controlled IAM processes may lead to organizational regulatory noncompliance and an inability to determine whether company data is being misused.

CAEs should be involved in the development of the organization's IAM strategy as well as evaluate the implementation of the strategy and effectiveness of companywide access controls. The purpose of this GTAG is to provide insight into what IAM means to an organization and to suggest internal audit areas for investigation. It can assist CAEs and other internal auditors to understand, analyze, and monitor their organization's IAM processes. A checklist for IAM review is also included in this guide

GTAG 8 - Auditing Application Controls

Each year, billions of dollars are spent globally on implementing new or upgrading business application systems. Effective application controls will help your organization to ensure the integrity, accuracy, confidentiality and completeness of your data and systems. It is important for the CAE and his or her team to develop and execute audits of application controls on a periodic basis in order to determine whether they are designed appropriately and operating effectively.

To further assist CAEs or other individuals who use this guide, we have also included a list of key application controls, a sample audit plan, and a list of some application control review tools.