The Roles of Information Technology in Acounting Information System Audit

Abstract

The rapid development of Information Technology ( IT ) is in line with the the development of human beings. The development of IT includes the development of infrastucture such as hardware, sofware stirage system and communication technology or networking (Laudon et al 2006). It is not only influencing the business but also other sectors such as health, education, government and etc. Information Technology is an effective tools for striving to future (Jogiyanto, 2013). Less than one generation, information technology has changed business all over the world (Azhar, 2010). The quality of accounting information system is much influenced by information technology, business strategy and organizational cultures (Romney & Steinbart, 2009).

Technology and information system is the most important components from the the success of the business. The success of the information should also be measured with the information technology effectiveness in supporting organizational business strategy (O'Brien & Marakas, 2006). Information and technology system is a business tool used by the organisastion to search, store and change the information (Bagranoff, 2010).

Since the requirements of the Sarbanes-Oxley Act of 2002 have been instituted, some organizations are now faced with an even greater IT challenge. Computers are now entity-wide and are not just confined to the mainframe. The challenge is to develop plans that enable the achievement of entity-wide controls, such as identifying, assessing, and responding to IT risks. Since one of the objectives of auditing is to identify and mitigate risks, a well-planned and well-executed internal IT audit program is a valuable asset to an organization faced with this situation (J. P. Russell (2005).

There are some internal controls within accounting system in the information technology integration, they are caused by : (Arens et al. 2009):

1. Computer controls which are used to manual control in which competitive advantages from information technology is the ability to manage complex business transaction in huge number efficiently.
2. The availabilty of higher information as most of its compex transaction can be managed effectively as complexities need to be managed

Audits are necessary to carry out as audits are planned, objective, and independent investigations of products, processes,or systems. By examining documentation, implementation, and effectiveness, auditing is used to evaluate, confirm, or verify activities related to the audit criteria (such as standards, procedures, or customer requirements). “The audit may be a single occurrence or a repetitive activity, depending on the purpose and the results of both the audit and the product/service, process, or management system concerned. A properly conducted audit is a positive and constructive process. It helps prevent problems through the identification of activities likely to create problems. Problems generally arise from the inefficiency or inadequacy of the concerned activity. J. P. Russell (2005)

The knowledge mastered by the auditors on the general control will abviously develop the ability of the auditors in mesuring and controlling effective application to reduce risks. The auditors at the public accountant offices shall issue an opinion regarding the internal control on financial report. The knolwledge of the general control and application will definitely be very important. (Arens et al. 2009).

The technology will always provide dratical effect to almost all auditing processes. The audit programs developed by the computer are aimed at auditing software application which enables to test all clients data. The technology is very important for accountants to understand business process of their clients and compete with the paperless audit environment. Now the audits have switched to electronic data storage to develop efficiency. The auditor who benefit from new technology will be much appreciated with huge profits form audit efficiency and effectivity. (Bierstaker et al. 2001).