The word ‘Audit’ coined from the Latin word ‘audire’ which means ‘to hear’. From the time of ancient Egyptians, Greeks and Romans, the practice of accounting and auditing existed. Auditing was executed in ancient India. Kautilya’s ‘Arthashastra’ existed in 4th century BC in Mauryan period and carries great importance. He stated that the head of finance and audit should independently and individually report the king.
The Comptroller
and Auditor General Of India was
formerly called the Accountant
General to the
Government of India in 1858 and later labelled as the Auditor General
of India in 1860.
The Constitution
Act, 1950, re-designated the Auditor General as Comptroller
and Auditor General. It
is understood that the first practice of a computerized accounting
system was at General Electric in 1954. The industry soon
recognized that they needed to develop their own software and
the first of the generalized audit software (GAS) was developed.
Information Technology Auditing (IT auditing) began as Electronic
Data Process (EDP) Auditing and developed basically as a result of
the rise in technology in accounting systems.
In
1977, the first edition of Control Objectives was issued. This
publication is now identified as Control Objectives for Information
and related Technology (CobiT). CobiT is the set of commonly accepted
IT control objectives for IT auditors. In 1994, Electronic Data
Processing Auditors Association (EDPAA) reformed its name to
Information Systems Audit and Control Association.
IT
Audit is defined as the procedure
of collecting and evaluating evidence to
decide whether a computer system safeguards
assets, maintains data integrity, allows organizational goals
to be achieved effectively
and uses resources
efficiently.
Let’s
look at various types of IT audit that are conducted in software
companies in India:
-
Financial audits
A third-party inspection of a
company's financial records and reporting initiates. Its objective is
to review the financial statements; and to state whether these
statements offer factual view of transactions performed by an
organization.
-
Operational audits
A future-oriented, systematic,
and independent assessment of organizational activities of asp.net
software companies in India. Financial data may be used, but the
key sources of evidence are the operational policies and
accomplishments related to organizational objectives. Internal
controls and efficiencies may be assessed during this type of review.
-
Integrated Audit
This is a grouping of an
operational audit, department review, and IS audit application
controls review.
-
Forensic audits
An investigation and
evaluation of a firm's or individual's financial facts for use as
evidence in court. A forensic
audit can be
conducted in order to accuse a party for fraud, misuse or other
financial claims.
-
Investigative audits
This is an audit that takes
place as a consequence of a report of unusual or doubtful activity on
the part of an individual or a department of c#
software company in India. It is usually engrossed on specific
aspects of the work of a department or individual.
-
Compliance audit
A compliance
audit is an
all-inclusive review of an organization's adherence to regulatory
guidelines. Independent accounting, security or IT consultants assess
the strength and thoroughness of compliance.
For example, you
may decide whether the business is complying with U.S. Environmental
Protection Agency (EPA) standards on the clearance of toxic waste. Or
you may look at whether a credit card company is ensuing federal law
with regards to charging its cardholders permissible fees and
interest.
IT Audit helps ASP
DOT NET software companies in India in numerous was such as:
-
Protecting assets-h/w, s/w, people, files
-
Preserving data integrity
-
Letting organizational goal to be accomplished effectively and using resources efficiently
-
Obeying the Compliances of Regulatory and Legal requirement
-
Nonstop improvement
