This type of audit involves an inspection of a firms IT structure, programme and performance. They are generally classified into three types:
- General Controls Review: an assessment of the authorities that oversee the running, upkeep and safeguarding of application systems in a certain milieu.
- Application Controls Review: this could incorporate an introspection of authority over the input, processing and production of systematic material.
- System Development Review: this involves an introspection of the progress of a new application system. This includes an assessment of the development procedure as well as the end-product.
Compliance Audit
This type of audit is essential to regulate whether a company is abiding by the set rules and regulations. It consists of supervising as to whether the personnel are abiding by the rules prescribed by the company. This includes inspecting legal documents related to banks and other lenders in agreement with central bank and stock exchange directives or government directives. Essentially, the outcome of such audits is communicated to particular individuals and the higher authority who sought clarity in the matter at hand.
Concurrent Audit
Most organisations such as banks, asset management firms, finance institutes and insurance organisations utilise the internal audit approach. Concurrent Audit is much the same as Internal Audit and is carried out at regular intervals. This is done to supervise the effectiveness in standard operations with statutory proclamations from time to time. Concurrent Audit usually acts as an appendage to the internal audit team, and assists it on a regular basis with factual findings.