Module 6 – Part 1

1. Module 6 – Part 1 An Overview of Information Systems Audit

2. Introduction • Today computers perform much of data processing required in both the private and public sectors of our economies. • Need to maintain the integrity of data processed by computers now seems to pervade our lives. • Fear of the substantially increased data-processing capabilities are not well controlled – computer abuse.

3. Introduction • Concerns with the privacy of data exchange with organizations. • E.g. tax department, medical authorities. • Uncontrolled use of computers can have a widespread impact on a society. • E.g. inaccurate information causes misallocation of resources within the economy and fraud can perpetrated because of inadequate system controls. • Those who suffer most often are those who can least afford to suffer.

4. Need for control & Audit of computers • Computers are used extensively to process data and to provide information for decision making. • Rapid decrease in the cost of computer technology , widespread availability of powerful microcomputers and their associated packaged software – resulted in the extensive use of computers in the workplace and at home.

5. Need for control & Audit of computers • Seven major reasons for establishing a function to examine controls over computer-based data processing. Costs of computer Abuse Value of hardware, software, personnel High costs of computer error Maintenance of privacy Costs of incorrect decision making Controlled evolution of computer use Organization costs of data loss ORGANIZATIONS Control and audit of computer-based information system