1. Information System Audit
CISA

2. Information System Audit
What is Information System Audit.(IS Audit)
Need For Information System Audit
Subject Matter
Objective Information System Audit
Statutory Requirement

3. What is Information System Audit.(IS Audit)
IS Audit refers to audit of systems (especially computer based) which provided information (like Accounts, Payroll, MIS etc.) to assure the management that the information generated from these system are reliable.
- Manger depends on information to take
decision (reliability of information).
-Internet failure affecting not only business
but every field (dependent).
-Control over system and IT Environment.
-Company wants assurance that system is
reliable.

4. Need For Information System Audit
Most of the organization today
-Bank
-Insurance Companies
-Mutual fund
-BPOs
-Manufacturing Companies
Are 100% computerized. While this has lead to speeding up processes and to ease of operation, and paper based audit now slowly disappearing.
-New kind of threats coming-RINOS Virus

5. Cont..
Hence there is a need for Auditors/ Chartered Accountants to understand answer to various question like:
What is System Audit ?
How to audit various aspects of information systems ?
How to check the existence and reliability of internal controls on computer based system ?
What would be impact of computer failure on business continuity ?

6. Subject Matter Software Hardware Network People etc.
-How to check ATM Transaction occurring a day.
-How to vouch IRCTC transaction happening in a day (correct Sample size and method)
System control come into picture, that control need to be checked.

7. Cont..
Financial audit depend heavily upon paper based evidence Ex(journal, Voucher, Bills, audit trail)
In system audit- evidence are in digital format-firewall, lock, encryption, authorized need to check
Separate audit required- I.e. system Audit by CISA qualified.

8. Why Is Audit Compliance Assurance Customer specification
Risk management
internal risk
External risk
improvement

9. Statutory Requirement
RBI-Made mandatory the system audit once in 3months for ATMs, NEFT, RTGS, Internet Banking, CBS
IRDA-Has initiated system audit
SEBI-made mandatory of system audit for stock broker, BSE, NSE, And mutual fund
it is only a matter of time before System Audit will become mandatory for all listed companies.

10. thanks
By Pratap