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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

IT Frauds and Audit Risks: Evidence of Improvements

IT Frauds and Audit Risks: Evidence of Improvements
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Author(s): Saeed Askary (Deakin University, Australia)
Copyright: 2007
Pages: 4
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch420
ISBN13: 9781599049298
EISBN13: 9781466665378


This study examines whether frauds in Information Technology (IT) environment affects audit risk and quality. Information system technology dominates over almost every type of business and auditors should have enough knowledge and skills about those systems as part of their responsibilities to ensure about their client’s internal control systems. Auditors should be able to examine the reliability of financial reporting process of those systems and provide audit opinion at the end. Thus, information systems audit, although integrated with the overall audit process and objectives, should finally facilitate for good corporate governance through providing quality audit report. This study uses data from Computer Crime and Security Survey (CCSS) 2006 to investigate the effects of IT risks on audit risks. Interestingly, the study find that the average improvements in audit of control risks is 49 percent, detection risk 46 percent, and inherent risk for as less as 25 percent. An overall improvement for auditor’s risk is 41 percent in which it shows a considerable improvement.

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