Podcast
Questions and Answers
Which of the following is NOT a part of the hire to retire process?
Which of the following is NOT a part of the hire to retire process?
What is included in the 'order to cash' business process?
What is included in the 'order to cash' business process?
Which component of the hire to retire process deals with managing employee compensation?
Which component of the hire to retire process deals with managing employee compensation?
What is one of the activities included in the order to cash process?
What is one of the activities included in the order to cash process?
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Which of the following activities is part of employee lifecycle management?
Which of the following activities is part of employee lifecycle management?
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What is the purpose of documenting the audit process?
What is the purpose of documenting the audit process?
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Which of the following factors affects the determination of audit materiality?
Which of the following factors affects the determination of audit materiality?
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Which component is NOT part of audit risk?
Which component is NOT part of audit risk?
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What criteria must audit evidence meet according to the IS auditing guidelines?
What criteria must audit evidence meet according to the IS auditing guidelines?
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Which of these is NOT a procedure for gathering audit evidence?
Which of these is NOT a procedure for gathering audit evidence?
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Why is it important for the IS auditor to have sufficient and reliable evidence?
Why is it important for the IS auditor to have sufficient and reliable evidence?
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What does an absence of controls imply in the context of audit planning?
What does an absence of controls imply in the context of audit planning?
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What must the IS auditor do if the obtained audit evidence is deemed insufficient?
What must the IS auditor do if the obtained audit evidence is deemed insufficient?
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What is the primary goal of COBIT in organizations?
What is the primary goal of COBIT in organizations?
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Which of the following best describes professional independence for an IS auditor?
Which of the following best describes professional independence for an IS auditor?
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What should the IS auditor develop to address audit objectives and compliance requirements?
What should the IS auditor develop to address audit objectives and compliance requirements?
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What role does supervision play in IS audits?
What role does supervision play in IS audits?
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Which of the following describes the type of evidence an IS auditor should obtain during an audit?
Which of the following describes the type of evidence an IS auditor should obtain during an audit?
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What is the significance of documenting an audit plan?
What is the significance of documenting an audit plan?
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How does COBIT help organizations increase the value of IT?
How does COBIT help organizations increase the value of IT?
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In which area should the IS audit function be independent?
In which area should the IS audit function be independent?
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Study Notes
IS Audit Standards Overview
- IS auditing requires specialized standards due to the unique nature of information systems (IS) and the skills required to perform audits.
Control Objectives for Information and Related Technology (COBIT)
- COBIT is an IT governance framework and toolset that helps managers connect control requirements, technical issues, and business risks.
- It enables clear policy development, promotes best practices for IT control, emphasizes regulatory compliance, and helps organizations maximize the value of IT.
- COBIT simplifies the implementation of its framework's concepts.
IS Auditing Standard - Professional Independence
- IS auditors should be independent of the auditee in both attitude and appearance, ensuring objectivity.
- Organizational independence is crucial, meaning the IS audit function should be separate from the area being reviewed to ensure objectivity.
IS Auditing Standard - Planning
- IS auditors must plan IS audit coverage to ensure compliance with audit objectives, applicable laws, and professional auditing standards.
- A risk-based audit approach should be developed and documented.
- The IS auditor creates and records an audit plan outlining the nature and objectives, timing, extent, and resources required.
- An audit program is developed detailing the nature, timing, and extent of the audit procedures needed to complete the audit.
IS Auditing Standard - Supervision, Evidence, and Documentation
- IS audit staff should be supervised to ensure audit objectives are met and professional auditing standards are followed.
- Sufficient, reliable, and relevant evidence must be obtained to achieve audit objectives, and audit findings and conclusions must be supported by appropriate analysis and interpretation of this evidence.
- The audit process should be documented, including details on the work performed and the evidence supporting the auditor's findings and conclusions.
Audit Materiality
- Audit materiality and its relationship to audit risk are essential considerations when determining the nature, timing, and extent of audit procedures.
- During planning, IS auditors should consider potential weaknesses or absence of controls and assess whether they could lead to significant deficiencies or material weaknesses in the information system.
Audit Risk
- Audit risk is the risk of the IS auditor reaching an incorrect conclusion based on audit findings.
- The IS auditor should be aware of three components of audit risk: inherent risk, control risk, and detection risk.
- The IS auditor should strive to reduce audit risk to acceptable levels, fulfilling audit objectives by appropriately assessing IS and related controls while planning and performing the audit.
Nature of Audit Evidence
- Audit evidence should be sufficient, reliable, relevant, and useful to support the IS auditor’s findings and conclusions.
- If the IS auditor believes the gathered evidence does not meet these criteria, additional evidence should be obtained.
Gathering Audit Evidence
- Procedures for gathering audit evidence vary based on the information system being audited.
- The IS auditor should select the most appropriate, reliable, and sufficient procedure for each audit objective.
- Procedures that should be considered include: inquiry, observation, inspection, confirmation, reperformance, and monitoring.
Audit Documentation
- Audit evidence gathered by the IS auditor should be appropriately documented and organized to support the IS auditor’s findings and conclusions.
Business Processes Overview
- A business process is a set of activities necessary to complete an end-to-end business scenario.
Key Business Processes
- Hire to Retire
- Order to Cash
- Procure to Pay
- Inventory to Deliver
- Plan to Produce
- Acquire to Dispose
- Record to Report
- Close, Consolidate and Report
Hire to Retire
- This process encompasses all aspects of the employee lifecycle, from recruitment and onboarding to separation from the company.
- This includes:
- Defining organizational structure and planning
- Recruiting the workforce
- Onboarding hired employees
- Managing the employee lifecycle (performance management, career development, and succession planning)
- Administration (managing time, compensation, leave and absence, and expenses for the workforce)
- Separation (including benefits management, offboarding, exit interviews, and collecting company property)
Order to Cash
- This process covers all activities from a customer placing an order to the payment being received and settled with the invoice.
- This includes:
- Managing pricing and contracts
- Creating and managing sales orders
- Fulfillment of sales orders
- Issuing customer invoices
- Processing customer rebates and recording customer payments
- Monitoring customer credit and collections
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Description
This quiz covers the essential standards and frameworks for IS auditing, including an overview of COBIT and the importance of professional independence and planning for auditors. It is designed to enhance understanding of the unique requirements and practices in information systems audits.
