An analysis of the evolving role of information technology with respect to selected standard and its impact on internal audit

Abstract

Modern organizations are increasingly dependent on information technology (IT) for various reasons: to enhance their operational efficiency, reduce costs or even attain a competitive advantage. The role of information technology in the organization continues to evolve and this has an impact on the internal audit functions that serve these organizations. This study investigated whether the King III report, Information Systems Audit and Control Association (ISACA) standards and Institute of Internal Audit (IIA)standards assist the internal audit function in addressing the impact of information technology on the organization and, as a result, the internal audit function itself. This was performed by way of a literature study on the internal audit function and the selected standards and corporate governance framework, the role of information technology in both the organization and the internal audit function, as well as an empirical study detailing a comparative analysis of the King III report, ISACA standards and IIA standards, utilizing keysuccess factors. The study identified an alignment of the key principles and elements identified in the King III report, ISACA standards and IIA standards, as well as support for IT-related reviews. The comparative analysis performed resulted in the formulation of key internal audit success factors, which compared favourably to those identified in the literature review. The study indicated that the King III report, ISACA standards and IIA standards assisted the internal audit function by addressing IT-related risks, controls and governance elements.