Internal Auditing Information Technology Case Study

Internal Auditing discipline Technology Case cultivationYue Sun (Leah)Activity 1. Key entity- direct softensCOSO ComponentEntity-level ControlsControl Environment memorial tablet wide honor code of conductRaising awargonness and finish of the codeGranting restricted accesses to managers based on their department and responsibility mount adventure AssessmentOrganization wide risk assessmentRisk appetites designed by department managersHaving senior managements or control groups go off and approve risk appetiteControl ActivitiesOrganization wide constitution protocolIndependent upcountry audit committee oversightInformation technology general controlInformation CommunicationUtilizing secured and monitored discourse transcription for employeesMonitoring ActivitiesPerformance management systemRegularly realize internecine auditing processesActivity 2.Audit procedure for information technology general control escort whether the managements hold a positive attitude and approa ch toward integrity and ethics.Determining whether policies exists to define acceptable IT practices, conflict of interest, and or other expect standards of ethical behavior deep down the arranging.Determining whether management take suitable precaution and disciplinary action in circumstances where dishonor the policies.Determining whether practitioners and management receive complete requisite training to expeditiously perform their duties.Determining whether the integrity code of conduct is being applied through kayoed daily operations.Determining whether the role of each employee is well defined, record, and understood by all parties in the organization.Determining whether all procedures be properly documented by designated employee and the documentation is securely managed with restricted access.Determining whether there atomic number 18 processes in place to monitor the integrity and the ethical value within the department.Audit procedures and evidence that indicate ope rating efficientnessAudit procedures to determine operational efficiencyDetermining whether the tasks and goals atomic number 18 performed and achieved. It implies that the controls are operating efficiently when management and employees meet the expectations associated with their responsibilities.Evaluating the commitment of the management and employees when executing the internal controls heap as higher level commitments from management and employees lead to higher level operating efficiency.Determining whether management is promoting and trying to enforce the internal controls in the organization.Observing the efficiency and speciality of communication between management and employees. It indicates that the controls are operating efficiently when management and employees keep an open and transparent communication channel.Observing the attitude of both management and employees towards integrity and ethics in the internal controls.Evidence that indicate operating effectivenessT he operation should be considered effective when management holds a positive tone throughout the organization and the communication between management and employees is effective and transparent. Having an ethics and integrity schedule that is honored by both management and employees is another indicator for effective operation.Activity 4. SHR Corporations entity-level controls are mostly soft in nature and therefore, usher out impact the corporations employees in terms of how they approach issues. Such entity-level controls do live across the organization to mitigate risks that threaten the company while issue assurance that the objectives of the organization would be achieved. In addition, the entity-level controls have both internal and external effect. For instance, such control would impact on the effectiveness at transaction and processing level which could smear the risks that would prevent the company from achieving its objectives.impuissance in SHR Corporations entity-l evel controls include incidents where management is not dedicated to train and instruct employees. Lacking communication between management and employees could impact the operating effectiveness greatly. Another weakness would be when less reliance is placed on control activities that are performed by employees who make highly judgmental or complex tasks. In order to amend the listed weaknesses, management should be assessing the grapheme of the internal control performance across the organization. Monitoring activities are necessary and SHR should also acquire self-sufficing evaluation by internal auditors to play down risks. heed and employees behavior could be affected by the entity-level controls that are carried out across the entire organization. Based on the risks that the organization is currently facing, the entity-level controls would require managements to assess and report on the effectiveness of the internal control of the organization. The independent internal aud itors should confirm and evaluate such reports concerning the effectiveness of the corporations internal control.Management and employees behavior at business processing level could be positively impacted since entity-level controls could improve their accountability. Having an effective entity-level controls would help both management and employees keep abreast with organizations policies and code of conducts. Because entity-level controls provide assurance to the board and management that the established procedures and policies are performed throughout the organizations operation.When auditing controls over the companys purchases and accounts payable, SHRs entity-level controls could affect professional skepticism since effective controls could minimize potential risks and misappropriation. Meanwhile, the entity-level controls would facilitate the assessment of process-level risks that could affect the operation of the organization. In addition, process-level controls could faci litate when conducting direct testes of transactions in order to ensure the financial statements are accurately presented.