INTEGRATED AUDIT

Its meanings and Applications

LECTURER : DR NURMAZILAH BINTI MAHZAN

TUTOR : PN YAZKHIRUNI

G R O U P M EM B ER S:
1. M U H A M M A D E Z R A N H A FIZ B IN K A M A R U LZ A M A N
C EA 080095
2. A Z U W A N B IN H A S H IM C EA 080008
3. C H O N G W A N X IN C EA 080024
OBJECTIVE
To understand the meaning of integrated
auditing.
To improve the notion of application on
integrated auditing.
To differentiate the characteristic between the
conventional and integrated auditing.
Standard apply and risk associated with the
use of integrated audit
The pros and cons of integrated audit
application

INTRODUCTION
Integrated auditing are also known as
Information System audit (IS Audit) or
Information Technology audit (IT Audit)
Began as Electronic Data Process (EDP)
Auditing
Examine the controls within an Information
Technology infrastructure
To evaluate the system’s internal control
design and effectiveness
Includes the efficiency and security protocols,
development of the internal control
processes, and IT governance

TYPES OF INTEGRATED
AUDIT
Information technology assessment and
network security review,
Assessment of the security process for the
network and all attached computing
equipment and to identify computer security
best practices
Web application security review,
Assessment of the control environment and
logical security that support web
applications as well as the identification of
potential security vulnerabilities
Application controls review,
Evaluation of control objectives of security,
privacy, data integrity, effectiveness, and
efficiency of the application in conjunction
with policies, industry best practices
Controls self assessment,
Assessment to identify the gaps between
current policies, procedures, systems, and
computer operations requirements and best
practices as encouraged industry standards
Software license compliance review.
Assessment of computing workstations to
validate the software that has been used is
properly licensed
How IT integrated with
auditing
IT auditing includes computer hardware,
software, automated controls and procedures
and data in electronic format.
Combination of manual and automated control
Computer-Assisted Audit Techniques(CAATs )
Audit software (ACL, IDEA)
ISA 315: Required auditor to understand how
the entity responded to the risk arise from
the IT.

Control Procedures
Information Processing
Computer assisted audit procedure is
important for auditor to get the evidence on
processing of transactions.
Segregation of Duties
Adequate control over the system is
important.
Physical Controls
Disaster recovery plan is useful in the physical
control in IT auditing.
Computer-Assisted Audit Techniques
(CAATs)
 Used to perform substantive procedures or in testing application
controls
Type of CAATs



Benefits of Using IT
Audit
Enhance the timeliness, availability, and
accuracy of information
Ensures 100% inspection of transactions in
which there is audit interest
Little of the time required rather than manual
methods
Allows the auditors to test for specific risks
Can identify unexpected or unexplained
patterns in data that may indicate fraud
Computer-Assisted Audit
Techniques
Assist internal auditors in their search for
irregularities in data files
Help internal accounting departments with
more detailed analysis
Support the forensic accountant with
extrapolating large amounts of data for
further analysis and fraud detection.
Simplify or automate the data analysis process
Thank you


Q&A
Session