Effects of It on Internal Control
EXECUTIVE SUMMARY
This paper will evaluates the role of information technology and how it affects internal audit process in banking industry. The study will also stresses on how IT affects internal control (control environment, risk assessment, control activities, information and communication and monitoring) and provides guidelines and best practices in evaluating techniques available to effectively perform auditing tasks internally. It will addresses how technology, Information system (IS) and electronic data processing (EDP) have changed the way organizations conduct its business, promoting operational efficiency and aid decision-making. It will also spotlights many aspects of IT risks and controls and highlights whether the right people are overseeing IT risks to the degree they should. It will demonstrate the impact of technology convergence on the internal control mechanism of an enterprise. It will emphasizes that the auditor also has a responsibility to assure that the governance level of management (the audit committee and board of directors) understand risks accepted by management and the liabilities potentially transferred to board members.
BACKGROUND OF THE STUDY
Modern banking in Ethiopia introduced in 1905. At the time, an agreement was reached in between Emperor Menelik II and a representative of the British owned National Bank of Egypt to open a bank which led to Bank of Abyssinia inaugurated in Feb.16, 1906 by the Emperor.
In the 30’s the bank was bought by the Ethiopian government and the State Bank of Ethiopia was established by a proclamation issued in august 1942. This bank was later disintegrated to two different banks forming the National Bank of Ethiopia and the Commercial Bank of Ethiopia.
The modern banking introduced in 1905 now grew up and gives different services. To provide efficient and fast customer focused domestic and international banking services banks change their manual works to computerized system using various kinds
This paper will evaluates the role of information technology and how it affects internal audit process in banking industry. The study will also stresses on how IT affects internal control (control environment, risk assessment, control activities, information and communication and monitoring) and provides guidelines and best practices in evaluating techniques available to effectively perform auditing tasks internally. It will addresses how technology, Information system (IS) and electronic data processing (EDP) have changed the way organizations conduct its business, promoting operational efficiency and aid decision-making. It will also spotlights many aspects of IT risks and controls and highlights whether the right people are overseeing IT risks to the degree they should. It will demonstrate the impact of technology convergence on the internal control mechanism of an enterprise. It will emphasizes that the auditor also has a responsibility to assure that the governance level of management (the audit committee and board of directors) understand risks accepted by management and the liabilities potentially transferred to board members.
BACKGROUND OF THE STUDY
Modern banking in Ethiopia introduced in 1905. At the time, an agreement was reached in between Emperor Menelik II and a representative of the British owned National Bank of Egypt to open a bank which led to Bank of Abyssinia inaugurated in Feb.16, 1906 by the Emperor.
In the 30’s the bank was bought by the Ethiopian government and the State Bank of Ethiopia was established by a proclamation issued in august 1942. This bank was later disintegrated to two different banks forming the National Bank of Ethiopia and the Commercial Bank of Ethiopia.
The modern banking introduced in 1905 now grew up and gives different services. To provide efficient and fast customer focused domestic and international banking services banks change their manual works to computerized system using various kinds
Bibliography: 1. The electronic journal on information system in developing countries. http://www.ejisdc.org 2. Bank Risk Management Guidelines (Revised) National Bank of Ethiopia 3. MAJ DR ABU MUSAS PAPER 4. Laudon and laudon (1988)management information system organization and technology 1ts edition 5. http://www.academicjournals.org/AJBM