Financial Audit

1. There are significant development under information technology area especially those related with the interfacing and managing complex application.

2. Auditors realized that computers had impacted their ability to perform the attestation function.

3. Corporate and information processing management recognized that computers were key resources for competing in the business environment and similar to other valuable business resource within the organization, and therefore, the need for control and auditability is critical.

4. Professional associations and organizations, and government entities recognized the need for IT control and auditability.

Senior management must select a strategy to determine who will pay for the information system’s services. Funding is an important topic because departments must have adequate funds to operate. Each funding option has its advantages and disadvantages. The three most common include these:

Shared cost
With this method, all departments of the organization share the cost. The advantage of this method is that it is relatively easy to implement and for accounting to handle. Its disadvantage is that some departments might feel that they are paying for something they do not use.