Information Systems Audit - Chapter 2

An increasing focus on data management is leading to 'Know Your ______' (KYD) becoming the new buzzword, replacing 'Know Your Client' (KYC).

The increasing focus on technology from companies, the audit profession, professional bodies, and regulators indicates the significant ______ of IT.

Remembering to be professional, performing effectively and efficiently, following standards, and documenting our work adequately and properly is important to do in the practice of ______.

The 'Conducting Business in Data Space' topic introduces the concept of ‘Know Your Data’ and how the client entity uses the concept to conduct a more efficient business and enhance the ______ controls.

The concept of 'Know Your Data' enables the auditor to evaluate the IT ______ initiatives of the entity and evaluate the maturity of its IT culture.

Alongside the benefits of technology comes a range of ______, many of which are not yet fully understood.

One of the topics covered is how disruptive technologies are changing the auditing landscape, adding more ______ to the auditor.

One of the topics discussed is how emerging technologies will change the way the ______ conduct the audit.

______ refers to machines undertaking tasks which require some kind of ‘intelligence’ such as learning, knowing, sensing.

Recent progress in AI has been based on techniques such as machine learning and ______ learning, whereby algorithms learn how to do things.

By creating sophisticated machine learning-based models, auditors can also improve ______ detection.

The audit is set to be further transformed by ______ learning, a form of AI that can analyze unstructured data such as emails.

______ process automation (RPA) is already being used in audit execution, particularly for repetitive tasks.

By making it possible for auditors to work better and smarter, AI will help them to optimize their ______, enabling them to use their human judgment.

______ is a foundational change in how records are created, kept and updated, where records are distributed among all their users.

The success of the blockchain approach is in using a complex system of consensus and ______ to ensure that a single, agreed-upon version of the truth propagates to all users.

Organizations face challenges in building effective risk management around cyber security due to factors like the spread of cyber risk across all activities, the external nature of threats, and the pace of change in the ______.

The pandemic may have provided criminals with additional opportunities to ______ their victims, as exemplified by the 'phishing' scams targeting DepEd employees.

According to the Annual Fraud Indicator, fraud is costing the UK economy £130bn each year, with losses rising by 56% in the past ______.

The rise of fraud in cyberspace has led to the emergence of a new form of audit known as ______ Audit.

A key challenge for corporations is managing the risk of data loss, which drives the demand for cyber security ______.

Breaches of information can result in financial and reputational damage, diminished investor confidence, and exposure to potential regulatory ______.

Cybersecurity has rapidly become a significant risk to businesses, capturing the attention of Congress, regulatory agencies, and company ______.

In response to increasing concerns, the Center for Audit Quality issued Member Alert #2014-3 to summarize the responsibilities of the independent external ______ with respect to cybersecurity matters.

Firms are encouraging the use of technology but haven't ______ all partners to adopt it, leading to internal struggles.

According to Google Trends data, interest in 'disruptive innovation' has been growing since ______.

Disruptive innovation was originally related to business theory, involving the creation of new markets and eventually displacing established market-______ firms.

Technology evolves like living organisms, undergoing stages of start, development, persistence, mutation, stagnation, and ______.

Technological changes that damage established companies often present a different package of performance attributes not initially valued by existing ______.

According to Clayton Christensen, technological changes that harm established companies are often not radically new or difficult from a ______ point of view.

Disruptive technologies, like those in Data Science, impact required skills of auditors, finance, and accounting professionals, and ______, posing implications for educators and recruitment policies.

The insights on assurance and audit services were discussed at a breakfast briefing organized by ICAEW and the ______.

Articles about audit recently decry the lack of a '______' implying auditors aren't trained to detect fraud effectively in higher education.

Due to the exposure of missing material misstatements, auditors must use technology to meet public expectations when assessing ______ or fraud.

Changes in clients' business models and processes are being driven by ______, requiring auditors to adapt their advice and support.

Audit firms need to invest in digital initiatives, including AI, ______, cyber security and developments in data capabilities.

The responsibility to train future CPAs in identifying risks of fraud falls upon the Board of Accountancy and the ______ on Higher Education.

Rather than face lawsuits for inefficient audits, firms often face legal action for overlooking significant material ______ caused by error or fraud.

Firms are recruiting and partnering with technology experts to keep up with changes in the way clients run their ______.

According to Khurram, regulators, auditors, and clients all have a role to play amidst the technological ______.

Corporates may invest in audit technologies themselves to reduce the need for ______ audits.

The audit partner relationship is currently leveraged as a source of valuable ______ advice.

Businesses are replacing clerical headcount with machines making them feel the benefits of ______ and machine learning.

In the near term, better qualified accounting personnel are required who know how to think, can apply ______ and can analyze data.

Technology will reduce the size of the audit team to a smaller, more ______-conversant team.

Technology will allow auditors to check every single ______ entry.

Technology encourages regulators to mandate that an audit include value-______ services, such as fraud detection.

Technology will move IS Audit from Continuous Control Monitoring (CCM) to continuous ______ monitoring (CTM).

Impact of IT on Audit

Know Your Data (KYD)

Disruptive Technologies

Emerging Technologies

Data Management

IT Governance

Data Analytics Opportunities

Effects of Technology on Audit

Artificial Intelligence (AI)

Machine Learning

Deep Learning

Fraud Detection

Robotic Process Automation (RPA)

Contract Review with AI

Blockchain

Consensus and Verification in Blockchain

Fraud University

Role of Board of Accountancy

Material Misstatement

Audit Strategy

Digital Initiatives

Transformational Technologies

Cusp of Change

Disruptive Innovation

Clayton Christensen

Technological Evolution

Market Leadership

Performance Attributes

Auditing Skills

Data Science Impact

Recruitment Policies

Cybersecurity

Phishing

Cyber Security Audit

Risk Management

Reputational Damage

Data Loss

Financial Impact of Cybercrime

External Audit

Commoditization

Disintermediation

Machine Learning in Auditing

Continuous Transaction Monitoring (CTM)

Assurance Services

Impact of Technology on Audit Teams

Automation in Finance

Regulatory Changes in Auditing