Often unnoticed, information systems audits actually have a level of importance equivalent to other audits, such as financial audit.
Since information systems are the key to successful business operations, periodic audits are essential to prevent potential problems.
In this article, we will talk in more detail about what an Information Systems audit is, its purpose, as well as the stages of its implementation. Come on, check it out!
Definition Of Information Systems Audit
An Information Systems Audit is a review process to ensure that an organization's information systems are reliable, secure, and effective.
In this process, information systems auditors collect data and evidence to assess whether the information system has met several important aspects, namely:
- Implementation of an adequate internal control system
- Implementation of computerized information systems
- Protection of all assets
- Guarantee of data integrity
- Reliability, efficiency and effectiveness of the system
An effective information systems audit process requires the collaboration of various scientists, including:
- Traditional Audit
- Information Systems Management
- Accounting Information System
- Computer science
- Behavioral science
Examples Of Information Systems Audits
Information System Audit has been implemented in one of the hospitals in Tasikmalaya that uses Hospital Management Information System (SIMRS).
The hospital faced various operational constraints, such as slow system processing that caused long lines and mismatch of patient billing data.
Through the information system audit process, it was revealed that the maturity level of Information Systems has not reached the expected standards.
The main problems identified include suboptimal management of the application system, limited supporting documents, and lack of training for system users.
Some of the suggested improvements include improving application system maintenance, improving operational document distribution, and providing regular training for users.
In addition, the audit also recommends better integration between application systems to ensure data consistency and accuracy.
With the implementation of these recommendations, it is expected that hospital operations can run more efficiently and provide better services to patients.
Purpose Of Information Systems Audit
1. Asset Security
The company must protect its assets, including:
- Data assets include financial, personnel, customer, and operational data.
- Software assets such as operational applications such as ERP and CRM.
- Hardware assets such as computer devices and server.
If the information system is not evaluated regularly, there are potential problems such as data leakage and cyber attacks that can harm the organization financially.
2. Data Integrity Assurance
As explained earlier, data is one of the most important assets for a company, so maintaining its integrity is crucial.
Data integrity here means ensuring that the company's data remains accurate, consistent, and intact.
By maintaining data integrity, businesses can use it as the basis for making informed decisions.
Conversely, data that is not guaranteed quality can result in erroneous analysis, which ultimately risks undermining the company's strategy.
3. System Effectiveness
The third objective of an Information Systems audit is to improve the effectiveness of a company's systems.
This Audit allows the company to evaluate various aspects of the information system that contribute to the achievement of organizational goals.
If weaknesses are found in the system, the company can immediately make improvements to optimize system performance.
With a more reliable system, the decision-making process can be carried out more quickly and accurately for the continuous improvement of the company.
4. System Efficiency
Finally, this audit aims to improve the efficiency of the company, especially in the system aspect.
That is, the system must be able to support the achievement of organizational goals by making optimal use of available resources.
Through information systems audits, companies can ensure that resources, including manpower as well as hardware and software, are used appropriately as needed.
In addition, information systems that have been optimally automated can help companies save time and costs compared to manual methods.
Stages Of Information Systems Audit
The information systems audit process is divided into stages, namely:
1. Planning Stages
At the first stage, auditor. plan the audit process by going through the following steps:
- Determine the main focus of the audit.
- Understand the information system and company background.
- Establish the scope and procedures of the audit.
- Allocate the resources needed for the implementation of the audit.
- Identify the main risks that will be a priority in testing.
This stage aims to ensure that auditors and clients have an understanding and an aligned agreement regarding the audit process that will be carried out.
2. Stages Of Control Testing
After the planning process is completed, the information system audit is continued by testing whether the controls that have been prepared have been implemented properly.
When the existing risks are significant enough, internal controls must work optimally to reduce these risks.
If the control goes well, the auditor will continue the next testing process.
Conversely, if the effectiveness of the control cannot be ascertained, the auditor will conduct a more in-depth evaluation of the control.
3. Stages Of Transaction Testing
Transaction testing reviews whether the information system is accurate in the process of recording and processing transactions.
It is intended that there are no financial transaction errors that affect the results of the final report.
For this reason, the auditor will check whether the records in the information system are in accordance with the supporting documents.
4. Stages of testing the balance or overall results
This step aims to ensure that the reports generated by the information system are correct and accurate through the advanced data verification process.
The verification process includes activities such as stock opname, confirmation with third parties, as well as the calculation of depreciation.
5. Final Stages
At this stage, additional testing is carried out to ensure that the resulting conclusions are accurate.
The Auditor will evaluate the extent to which the existing information systems support the company's operations optimally.
After the test is completed, a final report is drawn up, which includes findings, analyzes, as well as recommendations for improvement.
This report is then submitted to the client as a result of the entire audit process.
Types Of Information Systems Audits
Based on the purpose, Information Systems audit is classified into two, namely:
1. Audit of Information Systems in the aspect of financial statements
Information systems Audit aims to review the company's financial statements
If the financial recording process has been computerized, an audit is carried out on the information system used.
Through an information system audit, the auditor will assess whether the information system has been running according to standards to produce accurate and accountable financial statements.
2. Audit of Information Systems in operational aspects
This type of Audit evaluates how information systems can support the company's operational needs. Operational audits are classified into 3 types, namely:
a. Post-Implementation Audit
This Audit is carried out after the computer application is implemented in the company to ensure that the application meets the needs of users and runs efficiently.
In this stage, the auditor will provide recommendations on whether the information system can continue to be used, needs improvement, or even should be discontinued.
b. Concurrent Audit
This type of audit involves the auditor directly in the system development process as part of a team.
The role of the Auditor is to help ensure the quality of the system according to applicable standards and identify potential errors as early as possible to prevent problems at a later date.
c. Functional Performance Audit
This Audit focuses on assessing the overall performance of the information system that has been used.
Assessment includes aspects of system management, control in the development process, as well as system development efforts to ensure optimal performance.
Audithink as an Information Systems Audit solution
As an information system for internal audit management, Audithink's Comprehensive Features offering comprehensive solutions that assist companies in running the information systems audit process efficiently.
Audithink is able to automate the audit stages, from planning, execution, to reporting to reduce the risk of manual errors and increase the speed of the audit process.
Audithink also helps identify risks associated with information systems, such as non-compliance with regulations. Contact us now to get special offers around audit app features!
