Effects Of Information Technology Audit Controls In Financial Institutions

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Effects Of Information Technology Audit Controls In Financial Institutions


Abstract


Investigating the effectiveness of information technology (IT) Audit controls in financial institutions was worth researching, regarding the increasing number of financial institutions resorting to computerization. Thus, these institutions would primarily depend on IT audit controls that are put in place to manage and guard the institutions? overall business setup to achieve the institutions? business goals or objectives. The main objectives of the research were to find out the kind of IT Audit Controls being used, Controls? weakness, its causes and effects and the recommendations needed to ensure controls? effectiveness. Sixteen computerized financial institutions were sampled and the IT Controls used were studied. In spite of the successes made by the computerized financial institutions, the sampled financial institutions helplessly admitted to the dangers posed by other IT security challenges.


Chapter One


Introduction

1.1 Background to the Study

The idea of Information Technology (IT) Audit which has been in existence since the mid-1960s has metamorphically undergone various stages, mainly due to unfolding discoveries made in the technology and the integration of the technology into businesses (Rainer et al., 2011).

Currently there are a lot of companies that rely on the Information Technology (IT) for their day-to-day operations; among such are Telecommunication companies, Banking institutions and many others. For these organizations, IT plays big part of their day-to-day activities including the employment of setup systems that are more dependable to enhance the institutions? activities and operations. The above, thus underscores the fact that the application of IT in organizations, institutions, companies, enterprises and the like is constantly increasing.

Information Technology (IT) Audit which is also known as Information Systems (IS) Audit is the evaluation of organizations? daily transactions, activities, procedures, operations or setups within an Information System infrastructure (Rainer et al., 2011). Thus the primary function of an IT audit is to electronically examine to find out the institutions? capability to use Information Technology infrastructure to secure its hard earned valuables or assets and also communicate.


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