Internal Auditor's Role
The interior Auditor's Function in MIS Developments
By simply: Larry Elizabeth. Rittenberg Charles R. Purdy
The LOS manager in many organizations is encountering a fresh group concerned with the data digesting function вЂ” the internal EDP auditor. ' These auditors often have a diverse role ranging from evaluating info processing regulates to reviewing data secureness and new system innovations. However , in lots of organizations, the auditor's part is not clear. This article integrates the benefits of our very own survey which has a review of recent literature in an attempt to explain even more precisely the potential internal audit roles inside the systems advancement process. After describing the sample, we review the explanation for taxation involvement and the constraints upon such participation as perceived by the inside auditor. This can be followed by a report of our study of style phase auditing activities in 39 huge organizations. The boundaries and role of the audit function are together reviewed in light of these actions. Finally, the, potential contribution to the MIS manager is definitely noted, and recommendations are offered to the MIS manager enthusiastic about promoting a constructive operating relationship with Internal auditors. '
The internal auditor's role through the design stage of an EDP application is definitely unclear in numerous organizations. This article integrates the latest literature with all the authors' survey in an attempt to make clear more exactly the potential role(s) of the internal auditor inside the systems creation process. Used, four jobs appear to are present. In the buy of their importance, they are: (1) audit of control adequacy, (2) review of design process, (3) auditor as a user from the application, and (4) auditor participant inside the design method. The get ranking ordering of these roles in practice is explainable in terms of 3 constraints after internal examine involvement during the design period. The determined constraints are those of examine approach, review independence, and management aims. Although EDP manager reaction to internal review involvement is mostly favorable, it could be stronger. Improving of inside auditor knowledge in EDP systems definitely seems to be the key to improved acceptance. Finally, the potential contribution towards the MIS supervisor of inside audit participation is known, and means of constructive conversation are recommended.
The writers identified forty-eight organizations with Internal audit departments which usually performed EDP audits. Inside each organization the internal review manager received a set of questions on EDP audit techniques. Members of top administration and data processing managing received a questionnaire probing their behaviour toward the EDP examine function. A summary of the division of questionnaires and answers is shown in Desk 1 . With the 39 replies from inside auditors, 31 (or 79%) indicated that they performed a lot of design stage auditing. A further analysis indicated that more than half of the info processing departments had monthly budgets exceeding $300, 500 'Our emphasis is within the internal auditor who is a part of the organization. It truly is argued that such an auditor can deveiop sufficient familiarity with the data finalizing environment to become constructive whiie still rendering an independent standpoint. 'Sincethe reiationship invoives two parties; the recommendations obviously apply to equally.
Keywords: Inner audit. Inside auditor, tasks, involvement, LOS developments. MIS applications, design phase, explanation, constraints, practice, EDP manager, MIS manager Categories: 1 ) 3, 2 . 2, 2 . 41, installment payments on your 42. installment payments on your 45, installment payments on your 49, three or more. 59
LOS Quarterly I December 1978 47
Inside Auditor's Part
Table 1 ) Questionnaire Circulation and Response Rates
Intemal Auditor Responses received nonresponses Total forms mailed Response rate
M. P. Mgmt.
39 on the lookout for 46 81%
28 twenty 48 58%
25 twenty-three 48 52%
'Top supervision was thought as the person who the head of internal auditing...