Question

What do you understand by the term IT Governance? Why is it important for Internal Auditors to consider IT Controls in assessing a firm’s control environment?

Answer 1

IT Governance: The term governance means having a set of principles and standards that every organization need to follow for better performance and survival in the global market. IT Governance is one of the governance which focuses on the information technology which is very important for every organization growth. The term IT Governance is defined as one of the organizational governance consisting of policies, rules and procedures that ensures the enterprise information technology and supports the organization growth. IT Governance focuses on the following key areas of an organization's IT Assets: • Mechanisms • Structures and • Areas. Importance to consider IT Controls in assessing a firm's control environment by Internal Auditors: • The IT Governances guides the internal auditors in providing the assurance services over IT governance. • The Internal auditors' duty is to asses and make recommendations to improve the governing process. They also need to consider IT controls and identify the risk factors that are prone to organization. The internal auditors may be independent and significant in their advisory and consulting services yet they need to not only identify problems but also able to mention the root causes of such risks and should make constructive recommendations