HOW THE USE OF INFORMATION TECHNOLOGY IN THE AUDIT FUNCTION CAN BENEFIT THE ORGANISATION
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ABSTRACT How the use of information technology in the audit function can benefit the organisation: a case study of BAA Fabian Stewart - October 2007 This dissertation examines how the use of information technology (IT) in audit and assurance functions can benefit the BAA organisation. It researches the uses and benefits of IT in audit by a review of published academic and professional literature, and by a specific case study of BAA. The critical issue it focuses on throughout is how audit assurance may be improved as a result of the use of IT. The opinions of senior managers of the various departments which provide audit and assurance services within BAA were examined. Overall the study concludes that: IT is relevant to BAA audit and assurance functions; the use of IT does impact their performance; and the use of IT in audit and assurance functions does provide benefits for the BAA organisation as a whole. BAA audit and assurance managers gave their views on the root causes for the successes or failures in the use of IT, and they made suggestions for future developments in the application of IT for their audit and assurance functions. These comments and suggestions have contributed to the recommendations at the conclusion of this study.
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About the Book
About The Book This study is especially beneficial for external auditors, internal auditors, risk managers and students wishing to understand how they may improve audit and assurance functions with the use of IT. It also provides a helpful survey questionnaire template (Appendix A) which can be used by individuals to assess and explore possible improvement opportunities in audit and assurance functions that may be achieved with the increased use of IT. This dissertation addresses the following research objectives: • to establish the areas of IT that are relevant to audit and assurance functions; • to establish the areas in which IT impacts the performance of audit and assurance functions; • to establish the areas in which IT in audit and assurance functions benefits the organisation; • to establish the factors which have contributed to the success/failure of IT in audit and assurance functions; • to establish future possible improvement opportunities for the use of IT in audit and assurance functions. Additionally, the dissertation answers the following research questions: a) Relevance of IT • Is the use of IT relevant to audit and assurance functions? • What are the areas in which IT is relevant to audit and assurance functions? b) Performance impact • Does the use of IT improve the performance of audit and assurance functions? • What are the areas in which IT impacts the performance of audit and assurance functions? c) Organisational benefits • Does the use of IT in audit and assurance functions benefit the organisation? • What are the areas in which IT in audit and assurance functions benefits the organisation? d) Key Learnings • What factors have contributed to the success of IT in audit and assurance functions? • What factors have contributed to the failure of IT in audit and assurance functions? e) Improvement Opportunities • What are future possible improvement opportunities for the use of IT in audit and assurance functions?
About the Author
FABIAN STEWART, BSc, MBA, FCCA Fabian has extensive experience in audit and assurance gained in external and internal audit practices (including Deloitte & Touche, Arthur Andersen and Ernst & Young), and in industry (including British Rail and BAA plc – previously called British Airports Authority) He is an Airport Senior Manager at BAA plc responsible for the planning and performance of audit reviews, and the improvement of business unit management’s ability to introduce and maintain cost effective risk management processes. This includes: • supporting the company in the development of leading edge internal audit and risk management methodology; • planning and leading teams in undertaking audit reviews and special investigations; • reporting to the Board on the levels of retained risk in the company, and of the effectiveness of the processes in place to manage those risks; • partnering with the business units and offering consultative advice; • acting as a catalyst for change and as a conduit for driving best practice across the organisation. Fabian is married to Jacqueline and has two children Owen and Lisa.