The Importance of Auditing

The Importance of Auditing:

A Comparative Analysis of Internal and External Audits

IT auditing is the process of assessing a company's information technology infrastructure, policies, and processes to make sure they are in line with those goals, with the law, and with industry standards. Due to companies' increasing reliance on information technology in the modern world, IT auditing has grown in significance. This essay seeks to offer a thorough examination of the significance of IT auditing and a comparison of internal and external IT audits. I will also discuss insights into how management can profit from IT audits and how a new IT audit manager can establish a rapport with them.

The security, dependability, and availability of an organization's information technology system are crucially dependent on IT auditing. An independent evaluation of an organization's IT systems is provided by an IT audit, which helps to pinpoint weaknesses and vulnerabilities, reduce risks, and guard against possible threats like cyberattacks, data breaches, and system failures. Additionally, IT audits aid in ensuring adherence to legal standards like the Payment Card Industry Data Security Standard and the General Data Protection Regulation (GDPR). (PCI DSS). By identifying areas for improvement and offering suggestions for improvement, IT audits can assist in enhancing the effectiveness and efficiency of an organization's IT processes and help keep data secure and safe either through internal or external audits.

Independent outside auditors who are not workers for the organization being examined carry out external IT audits. External IT audits are mainly carried out to assure interested parties, including shareholders, investors, and clients, that the company's IT systems are dependable, secure, and in compliance with all laws and regulations. External stakeholders benefit the most from external IT assessments and the protection of their data.

Internal IT audits, on the other hand, are carried out by auditors who work for the company being reviewed. Internal IT audits are mainly performed to assess how well the organization's IT controls are working, pinpoint areas for improvement, and confirm regulatory compliance. Internal stakeholders like management and the board of directors are the main winners of internal IT investigations because these audits can expose some vulnerabilities that may otherwise have been exposed by a cyber threat. Typically, these audits are carried out by an organizational leader like a CTO (Chief Technology Officer) or a member of the organizations cyber threat prevention team.

IT auditing can be used by a leader in an organization to assess the efficiency of that organization's IT processes, pinpoint dangers and weaknesses, and offer suggestions for improvement. Additionally, IT auditing can be used to evaluate the effectiveness of IT employees and departments and to make sure that legal requirements and industry best practices are being followed to ensure they are compliant. Furthermore, IT auditing can offer important insights into the efficiency of the company's IT processes, which can be used to create improvement plans and growth for the organization.

Building a relationship with management as a new IT audit manager in a mid-sized business is essential to the audit function's performance. Understanding the culture, values, and objectives of the business is the first step in developing rapport. Meeting with important stakeholders, including top management, can help you accomplish this by learning about their concerns. To do this, establishing clear and open lines of contact with management is also crucial. This entails giving frequent updates on the status of audits, exchanging knowledge and advice, and resolving any issues or problems that may come up. The IT audit manager should also be accessible and open to suggestions from management and other parties.

The security, dependability, and availability of an organization's information technology system are crucially dependent on IT auditing. Internal IT audits focus on internal stakeholders while external IT audits mainly serve external stakeholders. Both types of IT audits are performed to serve specific purposes. IT auditing can be used by a leader in an organization to assess the efficiency of that organization's IT processes, pinpoint dangers and weaknesses, and offer suggestions for improvement. Understanding the corporate culture, creating open lines of communication, and being approachable are all necessary for an IT audit manager to create rapport with management.

References:

H. (n.d.). Why IT Auditing Is Necessary? | Uniserve IT Solutions. Uniserve IT Solutions. https://uniserveit.com/blog/why-it-auditing-is-necessary

Internal vs. external auditing. (n.d.). Internal Vs. External Auditing: What’s the Difference? | Caseware. https://www.caseware.com/us/blog/internal-vs-external-auditing

IT Audit Leaders Share Five Key Areas for Assurance Improvement. (n.d.). ISACA. https://www.isaca.org/why-isaca/about-us/newsroom/press-releases/2018/it-audit-leaders-share-five-key-areas-for-assurance-improvement