Who is an IT Auditor and why do you need one?

 

What is IT Auditing?

Internal IT audit is generally defined as a consulting activity designed to evaluate the operation of Information systems of an organization and suggest structurally changes to improve the effectiveness of risk management, control, and governance processes. IT auditors analyze the system's internal control design, identify the potential risks to their sensitive information, and suggest preventive measures.

Roles of An Internal Auditor

Achieving objectives:- The main role of an internal auditor is to review 

the operations of the company’s internal control and to determine whether they align with the objectives of the company.

Evaluating the risks - IT auditors apply a risk-based approach for their audit work. It involves identifying important risks and linking them to control objectives.

Monitoring IT Systems:- Auditors assess a company's information system and check whether it is operating securely. They ensure that the company's sensitive data is secure and accurate.

Compliance with laws and regulations:- An internal auditor ensures the functioning and management of a company complies with federal laws and contractual obligations that apply to information and Communications Technologies. They also promote ethics and help identify improper conduct.

Reporting to Management:- The auditor acts as the eyes and ears of the senior management. He evaluates the adequacy of internal control as well as the functioning of IT and prepares detailed reports for the management.

Make Recommendations:- After assessing and identifying the related controls and potential risks in an IT internal audit, the auditor makes recommendations about how to mitigate those risks and improve internal functioning.

Benefits of IT Internal Audit:-

1.     Cyber Security:- The regular conduct of the internal audit ensures that your network architecture is secure against cyber attacks and other breaches. Your IT team can detect and rectify the problems like out of date system patches, misconfigured server settings, and problematic in-house developed software.

2.     Increased efficiency - Internal auditor not only scrutinizes the redundancies in the working of an organization but also comes up with recommendations to improve them. And, that ultimately helps to save the time and money of the organization.

3.     Reduced risk of Legal concerns:- Every organization needs to abide by certain federal, state, and local laws. Sometimes the changes made in these laws are so minor that companies fail to take note of them. Internal audit keeps the company updated about these critical legal updates and hence reduces the chances of fines and other sanctions.

4.     Integrity - When the employees of an organization are aware that their work is going to be scrutinized in depth at regular intervals, it sparks integrity. They work more efficiently and the chances of internal fraud almost cancel out.

5.     Better External Audit reports - External audits are usually conducted to make reports for external entities like stakeholders, potential investors, clients, financial institutions, etc, and these entities often rely on audit reports to make decisions about the company. So, the biggest advantage of an internal audit is that it helps to identify the errors in a company's performance before the external audit and helps the management rectify the mistakes immediately.

6.     Optimum Utilization of resources:- Internal IT audit also makes sure that the digital structure of the organization is used properly. Misuse of resources means wastage of resources, which ultimately leads to increased costs for the organization. The company can figure out the optimum usage of resources and an internal audit helps with putting the resources to the best use and in the best interest of the business.

Closing Thoughts:-

To conclude, having an effective Internal Audit programme is a must for every business to analyze the framework and eliminate risks and challenges. However, if not planned properly an internal audit programme can prove to be a time-consuming, unessential process and not reap any real benefits. So, hiring a company with expertise in the department would be an ideal option.