Information System Auditing Assignment
Name
ACC/542
Date
Sanders Moran

Information System Auditing Assignment
The article selected for this assignment is titled “Implementing the IT-Related Aspects of Risk-Based Auditing Standards”. It is an overview of the importance of performing a Risk-based audit and the necessary steps auditors take in implementing risk assessment within their audit. Two sets of standards drove the need for risk assessment for IT controls. The first; AICPA SAS 104-111 (Risk Assessment Standards Toolkit) which covers the risk assessment standards and the key points auditors need to consider when incorporating them in an audit. Second, PCAOB AS 5; Audit of Internal Control over Financial Reporting that is Integrated with an Audit of inherent risk. My paper will cover the following topics outlined in the article: benefits of risk-based auditing, planning a risk assessment procedure, gaining an understanding of the IT environment, risk assessment, determining whether further audit procedures (FAP) are necessary, designing and performing FAP, and evaluating Audit Findings.
Recommended approach and Benefits of Risk-Based Auditing The layout of the article closely resembles the top-down approach that is required by AS 5. This approach is basically how the auditor performs their auditing procedures; not necessarily the order in which they do them. Top-down “begins at the financial statement level and with the auditor’s understanding of the overall risks to internal control over financial reporting” (www.pcaobus.org). The benefits of risk-based auditing include: (1) identifying and understanding how IT affects financial statement assertions and the level of risk involved; (2) incorporating tests of IT controls into further audit proceedings; (3) improving audit efficiency; (4) improving auditor’s understanding of how computer-aided tools and