4 key steps for auditors in assessing technology risks

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4 key steps for auditors in assessing technology risks

Emerging technology has brought a seemingly endless set of new risks to the clients that engage CPAs to perform audits.

Unauthorized personnel can wreak havoc, data can get lost or become inaccessible, and third-party providers can be unreliable. Meanwhile, avoiding all these risks by avoiding the latest technology also can put a client at risk of failing due to a competitive disadvantage.

Some of the challenges associated with technology are addressed in a new Center for Audit Quality (CAQ) resource for auditors, audit committees, and management, Emerging Technologies, Risk, and the Auditor’s Focus. (The CAQ is affiliated with the AICPA.)

According to the publication, key steps for auditors in a changing technology environment include:

The publication states that auditors also should gain a holistic understanding of changes in the industry and the IT environment before designing audit procedures. And if specialized skills are needed to determine the impact of new technologies, auditors may need to involve a subject-matter expert.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

Research & References of 4 key steps for auditors in assessing technology risks|A&C Accounting And Tax Services
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