Auditor’s Guide to Information Systems Auditing

Chapter 13. Management Issues

This chapter looks at the broader Information Systems/Information Technology (IS/IT) management issues including the legal issues relating to the introduction of IT to the enterprise, intellectual property issues in cyberspace, trademarks, copyrights, patents, as well as ethical issues, rights to privacy, and the implementation of effective IT governance.

The introduction of IT to organizations has had a dramatic impact on many aspects of their compliance with the law. Perhaps the most fundamental impact of IT on enterprises doing business has been the impact on the legal position of transactions. In order for business to continue taking place in a modern computerized environment, it must be enforceable that transactions concluded and performed in whole or in part by electronic means be regarded as legally binding. In addition, a variety of concerns regarding confidentiality, accuracy and completeness of information, identity authenticity, and protection of intellectual property have required the rethink of existing laws and legislation. The extent to which legislation has kept pace with advances in technology varies from country to country although all face the same problems.

Business moving onto the Internet has created some of the greatest opportunities for fraud the world has ever known. “Cyberfraud” is a major international growth industry that has both the business and legal world struggling to keep pace. Fraud itself typically involves a false ...