APPLICATION OF INFORMATION TECHNOLOGY IN AUDITING
Whilst computers have virtually replaced a lot of the manual tasks hitherto
performed by human beings, such as transaction processing, payroll processing,
and online teller operations as in the case of ATMs in the financial institutions,
traditional auditing still retains its core objectives, of ensuring reliability of
internal controls over processes and that of raising assurance of the accuracy
and consistency of processing, through the normal testing and vouching
processes. The `explosion’ in the use of Information Technology devices and
models such as, complex networks, the internet, and indeed the convergence of
both telecommunication devices and networking infrastructure on a single
terminal, has created virtual offices where employees and customers alike, do
perform the most sophisticated transaction processing. Examples are banking
transactions which use mobile phones, accounts update, ATM and vending
machine operations, from the confines of people’s homes and/or offices. These
models while creating vast business opportunities for companies and
institutions have also created a great deal of audit risks and challenges which,
if unchecked, can cause devastating impacts on companies and organisations.
It is noteworthy, that in the mesh of these internetworking infrastructure
powered by cyberspace – the internet ¯ and even the employees, can become
potential risk agents.
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