IS Audit acts as the bridge between Technology ➜ Risk ➜ Governance.
Modern organizations rely heavily on technology for every key business process.
Greater dependence on IT means greater exposure to cyber threats, operational failures, and regulatory risks.
An Information Systems (IS) Audit evaluates whether:
👉 IT resources are secure and reliable,
👉 Data integrity is maintained, and
👉 Systems support business objectives efficiently.
Thus, IS Audit acts as the bridge between Technology ➜ Risk ➜ Governance.
(For detailed governance frameworks, refer to Module 2 – Governance, Risk & Compliance.)
🎯 Key Takeaways
⚫ Information Systems (IS):
A combination of hardware, software, data, people, and processes used to collect, process, and distribute information.
⚫ Information Systems Audit (IS Audit):
A systematic process of evaluating the controls, security, and effectiveness of an organization’s IT infrastructure.
⚫ Purpose of IS Audit:
Ensures IT systems are secure, data is accurate, and technology supports organizational goals.
⚫ Scope of IS Audit:
Includes review of IT governance, system development, security management, and data integrity.
⚫ Importance:
Organizations rely on IT for all critical operations — therefore, failures or breaches can cause serious business, financial, and reputational risks.
⚫ Relationship: Technology → Risk → Governance:
IS Audit ensures that technology risks are identified, assessed, and managed effectively through proper governance mechanisms.
⚫ Data Integrity:
Ensures data is accurate, complete, and reliable throughout its lifecycle.
⚫ Cyber Threats:
Potential attacks or unauthorized activities targeting information systems.
Examples: malware, phishing, hacking, ransomware.
⚫ Operational Failures:
System downtime, configuration errors, or human mistakes that disrupt IT operations.
⚫ Regulatory Risks:
Non-compliance with IT and data protection laws (e.g., IT Act, GDPR) may lead to legal penalties or business restrictions.
🧩 MODULE QUIZ 1.1
Q1. Which of the following best defines Information Systems Audit?
A. Checking whether employees are using computers properly
B. Reviewing the accounting books of an organization
✅ C. Evaluating IT controls, data integrity, and system efficiency
D. Installing new software in the organization
Q2. Why has the importance of Information Systems Audit increased in modern organizations?
A. Because IT systems have become less complex
✅ B. Because of greater dependence on technology for all operations
C. Because manual auditing is no longer necessary
D. Because IS audit replaces financial audit completely
Q3. What is the main objective of an Information Systems Audit?
A. To increase hardware speed
✅ B. To identify and manage IT-related risks
C. To hire more IT staff
D. To ensure only software updates are installed
Q4. Data integrity in the context of IS Audit means:
A. Data is stored in multiple systems
✅ B. Data is accurate, complete, and reliable
C. Data is encrypted with passwords
D. Data is shared openly between systems
Q5. Which of the following represents the relationship between IS Audit elements?
A. Risk → Technology → Governance
B. Governance → Technology → Risk
✅ C. Technology → Risk → Governance
D. Audit → Risk → Policy
Q6. An IS Auditor primarily ensures that IT systems:
A. Are designed by the IT department only
✅ B. Support business objectives efficiently
C. Are outsourced to third parties
D. Are used by all employees
Q7. Cyber threats include which of the following?
A. Power failures
✅ B. Malware, phishing, hacking
C. Data backup
D. Software upgrades
Q8. Operational failure in an information system refers to:
A. Legal penalties for non-compliance
✅ B. Human error or system malfunction causing disruption
C. Software licensing issues
D. Data encryption
Q9. Regulatory risk in IS Audit refers to:
A. Delays in system updates
✅ B. Failure to comply with data protection or IT laws
C. Failure to hire IT staff
D. Use of outdated hardware
🧠 Summary Insight
“Information Systems Audit transforms technology oversight into business assurance — ensuring that IT supports, not threatens, organizational success.”
