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The CISA® Prep Guide: Mastering the Certified Information Systems Auditor Exam by John Kramer

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1.4. The Audit Organization

In most corporate structures, an audit subcommittee of the board is charged with ensuring that the risks are being actively managed and audits are performed to keep them informed as to the current state of control and risk mitigation. This board committee is often the group that the internal audit department reports to formally, although they often report elsewhere administratively.

The auditor should have a clear mandate to perform the IS audit function. This mandate is documented in the audit charter. Wherever the charter exists for the entire audit function or internal department, for example, the IS audit mandate should be incorporated. The audit charter should clearly address the authority, accountability, and responsibility of the audit function.

External auditors may be engaged annually by the audit committee to review the company's finances and to give an opinion on the sufficiency of the bookkeeping and reporting processes. Today all the bookkeeping is done on computers, so in order to give an opinion on the financials, Certified Public Accountants (CPAs) and accounting firms first must get a comfort level on how well the IS processing environment performs and is being managed. If the information systems are not in order, how can the financials be relied on? Placing reliance on the systems that manage the company's financial information is the primary reason auditing and accounting firms need to perform an IS audit. Once assurance is gained ...

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