ROLE OF INFORMATION SYSTEMS AUDIT IN ENSURING DATA INTERGRITY

An information system is a combination of software, hardware, and telecommunication networks to collect useful data, especially in an organization. Many businesses use information technology to complete and manage their operations, interact with their consumers, and stay ahead of their competition. An audit aims to establish whether information systems are safeguarding corporate assets, maintaining the integrity of stored and communicated data, supporting corporate objectives effectively, and operating efficiently.

Typical components of information systems

1. Hardware – This is the physical component of the technology. It includes computers, hard disks, keyboards, iPads, etc. The hardware cost has decreased rapidly while its speed and storage capacity has increased significantly. However, the impact of the use of hardware on the environment is a huge concern today. Nowadays, storage services are offered from the cloud, which can be accessed from telecommunications networks.

2. Software – Software can be of two types, system software and application software. The system software is an operating system that manages the hardware, program files, and other resources while offering the user to control the PC using GUI. Application software is designed to manage particular tasks by the users. In short, system software makes the hardware usable while application software handles specific tasks.

An example of system software is Microsoft windows, and an example of application software is Microsoft Excel.

3. Data – Data is a collection of facts and is useless by themselves, but when collected and organized together, it can be very powerful for business operations. Businesses collect all the data and use it to make decisions that can be analyzed for the effectiveness of the business operations.

4. Telecommunications – Telecommunication is used to connect with the computer system or other devices to disseminate information. The network can be established using wired or wireless modes. Wired technologies include fiber optic and coaxial cable, while wireless technologies include radio waves and microwaves.

Data Integrity includes the safeguarding of the information against unauthorized addition, deletion, modification, or alteration. This includes items such as accounting records, backup, documentation, etc. Information Systems are used to capture, store, and process, retrieve and transmit the data securely and efficiently. The emphasis is on the accuracy of the data and its transmission in a secured manner.

The role information systems audit in ensuring data integrity include:

Verification of Data Accuracy:

Information systems auditors assess the accuracy of data by comparing it with the source documents, input controls, and processing logic and verify that data is entered correctly, processed accurately and stored without any unauthorized alterations.

Validation of Input Controls:

Auditors review and validate the effectiveness of input controls to ensure that only valid and authorized data is entered into the system. This includes checks for data validation, completeness, and proper handling of errors.

Data Processing Controls:

Audit procedures focus on the examination of data processing activities to ensure that data manipulation and transformation processes maintain integrity. This involves reviewing algorithms, calculations, and transformation rules to identify and prevent any unintentional or malicious alterations.

Access Controls:

Information systems auditors assess access controls to prevent unauthorized access to data which can lead to intentional or unintentional data corruption. They also examine user permissions, segregation of duties, and other security measures to prevent unauthorized modifications.

Data Storage and Retention:

Auditors evaluate how data is stored, archived, and retained over time to ensure that it remains intact and unaltered. Proper backup and recovery procedures are examined to guarantee the availability of accurate data in case of system failures or disasters.

Change Management Processes:

Auditors review change management processes to ensure that any modifications to the information system are well-controlled and documented while changes to data structures, database schema, or application logic should be carefully managed to maintain data integrity.

Audit Trails and Logging:

Implementation and review of audit trails and logging mechanisms help in tracking changes made to the system and data. Auditors also verify that logs are secure, tamper-resistant, and regularly reviewed to detect and respond to any unauthorized or suspicious activities.

Audit trails act as a deterrent to data manipulation or unauthorized access. They provide a detailed record of who accessed the system, what changes were made, and when they occurred, ensuring the integrity of electronic records. Thus, preventing data manipulation.

Data Encryption and Transmission Controls:

Auditors assess the security measures implemented during data transmission and storage, including encryption protocols ensuring the confidentiality and integrity of data during transmission is crucial to prevent data corruption.

Compliance with Regulations:

Information systems audit ensures that data management practices comply with relevant regulations and industry standards, which often include requirements for data integrity.