Accounting Information Systems: The Processes and Controls, 2nd Edition

MAINTENANCE OF INFORMATION TECHNOLOGY CONTROLS (STUDY OBJECTIVE 11)

Over time, the cost of computer hardware and software has dramatically decreased, while computing power has vastly increased. This means that today most small companies can afford to maintain computerized accounting systems, while larger companies place even greater reliance on computer-based systems. Information technology now plays such an important role in organizations that any failure in these systems can halt such ongoing operations as sales, manufacturing, or purchasing. IT systems have become the lifeblood of operations for most companies.

There is a paradox in this increased use of information technology. Computerized systems increase the efficiency and effectiveness of the organizations that use them; but at the same time, they increase vulnerability. The more that an organization relies on information technology, the greater the risks are, including unauthorized access, hackers, business interruption, and data inaccuracies. These extra risks call attention to the need for internal controls over and above those described in the COSO report.

In response to this need, the Information Systems Audit and Control Association (ISACA) developed an extensive framework of information technology controls, entitled COBIT, for Control Objectives for Information Technology.⁹ COBIT is extremely important guidance for those who design or audit IT systems. The AICPA and the Canadian Institute of Chartered Accountants ...