Unformatted text preview: t the education of clients, colleagues, the general
public, management, and boards of directors in enhancing
their understanding of information systems auditing and
10. Maintain high standards of conduct and character and not
engage in acts discreditable to the profession.
5. Failure to comply:
Failure Can result in investigation Ultimately in disciplinary action IRREGULAR AND ILLEGAL
ACTS Irregular act :
– reflects an intentional violation of
» corporate policies
» regulatory requirements
regulatory – or an unintentional breach of law
or Illegal act :
– represents a willful violation of law
Fraud Computer crimes Nonconformity with agreements &
contracts between the organization & third
parties Violations of intellectual property rights
Violations Noncompliance with other regulations &
laws. Who is responsible for prevention,
detection, and reporting?
detection, Management is responsible for the prevention
and detection of irregular and illegal acts, not
the IT auditor. Characterization should be made by qualified
expert. CPA s are qualified to determine if acts are
material to financial statements.
material What is the IT Auditor’s
Responsibility? ISACA guideline : IT auditors are not qualified to determine
whether an irregular, illegal or erroneous act
has Overview of Responsibilities
3. Plan the IT audit engagement based on an
assessed level of risk that irregular and illegal
acts might occur, and that such acts could be
material to the subject matter of the IT auditor’s
Design audit procedures that consider the
assessed risk level for irregular and illegal acts.
Review the results of audit procedures for
indications of irregular and illegal acts.
4. Report suspected irregular and illegal acts to
one or more of the following parties:
– – –
– The IT auditor’s immediate supervisor and
possibly corporate governance bodies, such as
the board of directors or audit committee;
Appropriate personnel within the organization,
such as a manager who is at least one level above
those who are suspected to have engaged in such
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This note was uploaded on 03/31/2014 for the course ACCOUNTING 1 taught by Professor Salendrez during the Spring '13 term at De La Salle University.
- Spring '13