9 support the education of clients colleagues the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: t the education of clients, colleagues, the general 9. Support public, management, and boards of directors in enhancing their understanding of information systems auditing and control. control. 10. Maintain high standards of conduct and character and not Maintain engage in acts discreditable to the profession. engage 5. 5. Failure to comply: Failure Can result in investigation Ultimately in disciplinary action IRREGULAR AND ILLEGAL ACTS ACTS Irregular act : – reflects an intentional violation of reflects » corporate policies or or » regulatory requirements regulatory – or an unintentional breach of law or Illegal act : – represents a willful violation of law represents EXAMPLES EXAMPLES Fraud Computer crimes Nonconformity with agreements & Nonconformity contracts between the organization & third parties parties Violations of intellectual property rights Violations Noncompliance with other regulations & Noncompliance laws. laws. Who is responsible for prevention, detection, and reporting? detection, Management is responsible for the prevention Management and detection of irregular and illegal acts, not the IT auditor. Characterization should be made by qualified Characterization expert. expert. CPA s are qualified to determine if acts are CPA material to financial statements. material What is the IT Auditor’s Responsibility? Responsibility? ISACA guideline : IT auditors are not qualified to determine IT whether an irregular, illegal or erroneous act has occurred. has Overview of Responsibilities 1. 1. 2. 3. Plan the IT audit engagement based on an Plan 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 report. report. Design audit procedures that consider the Design assessed risk level for irregular and illegal acts. assessed Review the results of audit procedures for Review indications of irregular and illegal acts. indications 4. 4. Report suspected irregular and illegal acts to Report one or more of the following parties: one – – – – The IT auditor’s immediate supervisor and The possibly corporate governance bodies, such as the board of directors or audit committee; the Appropriate personnel within the organization, Appropriate such as a manager who is at least one level above those who are suspected to have engaged in such acts. If...
View Full Document

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.

Ask a homework question - tutors are online