System Audit Concept Objectives of System Audit Commerce YouTube Lecture Handouts

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System Audit Concept Objectives of System Audit Commerce

The Concept

  • A system audit is defined as a “systematic and impartial review to establish whether operations and related results comply with the planned arrangements, and whether these arrangements are implemented effectively and are appropriate to fulfil objectives.”
  • It՚s also known as a “systematic, independent, and recorded procedure for gathering audit data and objectively evaluating it to determine the extent to which audit requirements are met.”

Objectives of System Audit

Objectives of System Audit
  • To assess the efficacy of the implemented system in achieving the given objectives,
  • To assess the compliance or non-conformity of system elements with the defined requirements, and
  • To assess the effectiveness of the implemented system in fulfilling the specified objectives.
  • To provide an opportunity for system improvement, and
  • To comply with statutory and regulatory obligations. In the most recent approach, auditors are expected to focus on risk, status, and importance rather than just compliance. This implies they will be required to make better informed decisions about what is effective rather than simply following the rules.

Process of System Audit

Process of System Audit
  • Audit Initiation
  • Audit Preparation
  • Audit Execution
  • Audit Report