In present moments, technology has been integral in almost every facets of our lives. There has been a remarkable improvement in life following technological advancements. In the field of financial accounting, for instance, technology has brought many changes. These changes have made it easy for institutions to raise concerns about risks coupled with how to mitigate them. In addition, it has made the auditing of Accounting Information System (AIS) to be easier. Notably, risks may result to error full financial statements that normally have detrimental effects in businesses (Brandas, Stirbu, & Didraga, 2013). They affect the credential or rather the financial reality of a business.
AIS is considered as an integral part when it comes to processes that involve IT and financial auditing as well as IT Governance in any organization (Brandas, Stirbu, & Didraga, 2013). This includes reviews relating to the fiduciary duty of an organization in establishing the suitability of IT services relative to business objectives in addition to setting adequate mechanisms for internal controls. The AIS audits concentrate on both the physical as well as the logical security of the server. This takes into account the system logging, the administration server plus other security issues including system backup. In order to establish an efficient as well as an effective control environment, IT and financial processes plus the operational processes are often considered to be mutually dependent. The integrated audits thus serve this purpose. Technologically, the audit process relies on vast aspects such as the control of applications, data availability, and application change control among others (Wiley, 2013).
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Studies that are involved in risks, control as well as the auditing of AIS show that two methodologies are commonly used for this purpose. These are the professional approach and the research approach. The former fits ISA, COBIT, IT Risk, COSO and SOX while the latter relies solely on regular audits and fraud utilizing IT (Brandas, Stirbu, & Didraga, 2013). Nonetheless, incorporating IT and financial audit related risks and controls during the AIS approach appear to be a more realistic requirement. This is because it will provide a financial statement that is rich in accuracy and integrity. The use of information technology in business operations, particularly in financial and control systems, focuses on the risks that are twined to AIS. Such risks are studied in relation to how they impact on financial statements. In that respect, risk and AIS control approach forms the essential component during IT and financial audit in addition to the IT Governance (Brandas, Stirbu, & Didraga, 2013).
Notably, the modern research is rooted on finding integrated approaches when dealing with risk, control and AIS control. This is done with a gist to ensure that financial statements are credible enough. It is apparent that current research and methodologies try to separate risks and AIS controls from IT and financial audit point of view. However, such risks in most cases affect the financial statement directly thus they ought not to be segregated. In that case, the integrated Approach Model of Risk, Control and Auditing of AIS treats risks based on three cycles that are involved in businesses process (Brandas, Stirbu, & Didraga, 2013). These are a purchase , sales, and cash cycle. From this model, it is apparent that there is a direct relationship between the risks, controls and the audit protocols with the three cycles. In addition, the integrated risk values in the model pave the way for both IT and financial audits. The integrated model is thus very important tool in supporting auditing processes plus IT Governance during the process of continuous auditing.
In conclusion, credible financial statements can only be obtained if the risk, control of AIS, IT, and financial audits are not treated separately. This has clearly been justified by the integrated Approach Model of Risk, Control and Auditing of AIS. The model revealed that the risks have direct influence to the financial statement. Therefore, this approach is the most accurate and reliable when it comes to developing reliable financial statements.
References
Brandas, C., Stirbu, D., & Didraga, O. (2013). Integrated Approach Model of Risk, Control and Auditing of Accounting Information Systems. Informatica Economica , 17 (4), 87-95.
Wiley. C. (2013). A state By State Accounting Guide: What are Accounting Information Systems? AccountingEdu.org . Retrieved from http://www.accountingedu.org/accounting-information-systems.html.
