LBYMODT Notes

Jenevieve Limqueco (11117818) February 4, 2014 From yesterday’s lesson, I learned that IT governance is different from enterprise governance. Enterprise governance is the process of setting and implementing corporate strategy, making sure that the objectives are achieved efficiently & manage risks. While IT governance is the process for controlling an organization’s IT resources. In short, enterprise governance is the governance of the whole entity itself. While IT governance is the governance that makes sure enterprise governance is being accomplished. IT governance is a very important part of enterprise governance because of organizational dependency on information and communication. IT governance has 2 objectives: 1) set strategies for IT so that it would be aligned to the organizational’s goals. And, 2) use IT for maximum opportunity and minimum risk. Having 2 objectives gives rise to 2 parts to IT governance. 1) Use of IT to promote an organization’s objectives & enable business processes. 2) Manage & control IT-related risks. Financial auditors and IT auditors work hand-in-hand from the beginning of the engagement until the delivery of audit report because as financial auditors analyze the internal control system of an entity, they would need the help of an IT auditor, because only IT auditors can understand the audit “through” the computer. To be an IT auditor, you don’t need to be a CPA, you can be an IT graduate or computer science graduate, as long as you take and pass the exam for Certified Information Systems Security (CISA). Computer Assisted Audit Tools & Techniques (CAATTs) is a broader umbrella whose subcategories can be grouped into 2: 1) Software used to increase an auditor’s personal productivity & software used to perform data extraction & analysis. 2) Techniques used to increase the efficiency & effectiveness of the audit function. Computer Assisted Audit Techniques (CAATs) on the other hand, usually refers to the techniques