Everything you need to know about IT audit and processes


An upstream oil and gasoline company can use gear sensors, machine-to-machine methods, edge computing, machine studying, and information analytics to foretell equipment downtime. Consequently, you’ll be able to transfer from a preventive upkeep strategy to a cheaper predictive upkeep technique.

A producing company also can use enterprise useful resource planning (ERP) software. This may make actionable information centrally accessible in actual time, reduce redundant and duplicate information entry procedures, and automate processes like store scheduling and components procurement.

Regardless of all its advantages, IT additionally carries dangers; therefore the necessity for an IT audit.

What’s an IT audit?

An IT audit systematically analyzes and evaluates the knowledge technology methods, technology infrastructure, and IT-related practices of a business to establish key technology dangers and, most significantly, what they’ll do to stop them or mitigate their results.

IT audit providers could embrace:

  • A complete evaluation of IT dangers
  • An evaluation of company insurance policies and normal working procedures for dealing with, processing, and administration of data.
  • An audit of data technology methods, processes, and controls.
  • An audit of a particular software or system (for instance, ERP)
  • An evaluation of the company’s regulatory compliance.

What occurs in an IT audit?

In an IT audit, your technology consultants will make clear or establish your IT threat administration targets, set up the scope of the audit, establish your core business course of, and uncover your IT touchpoints. Then you’ll do the next duties.

1. Establish and Classify Threat Occasions

At this level, your IT audit group will establish IT dangers or threat occasions which might be throughout the scope of the audit. A threat is all the pieces associated to your software, methods, technological infrastructure, and processes that may threaten your operations, availability of providers, information and demanding methods.

As soon as they’ve acknowledged and recognized the dangers, they are going to compile them right into a threat register. They will even classify them based on the preliminary threat eventualities. Preliminary threat classes or eventualities embrace, however usually are not restricted to, information loss and corruption dangers, IT operations dangers, personnel dangers, challenge dangers, and compliance dangers.

2. Assess the severity of the chance

Your IT threat consultants will now assess the severity of the dangers. This can be a two-pronged course of that includes ranking a risk-based mostly on the chance of it occurring and its potential impression.

Earlier than they’ll assign likelihood and impression scores, your IT audit consultants will want your enter to outline their likelihood and impression scales or values.

Particularly, you’ll have to set up the frequency with which a threat is more likely to happen. For instance:

  • Unlikely: can occur as soon as in a 12 months
  • Barely probably: could happen lower than 3 times in a 12 months
  • Seemingly: can happen three to 5 instances in a 12 months
  • Very probably: can happen six to 11 instances in a 12 months
  • Very probably: could happen 12 or extra instances in a 12 months

As well as, you additionally need to assign values ​​to impression ranges. Doing this may be tougher than articulating the likelihood of threat occasions since there will be a number of methods to measure the impression. For instance, the impact of a threat occasion will be assessed towards its greenback price, challenge or program schedule delays, and the extent of operational or service disruption.

As an example, the impression of threat will be:

  • Negligible impression: it’s going to lose you $2,000, set a challenge again for every week, or trigger 10 minute service downtime for a non-critical person
  • Low impression: It can price you $5,000, a month’s delay on a challenge, or three hours of service downtime for a division
  • medium impression: it’s going to price $15,000, a challenge delay of three months and a service downtime of 5 hours for a division
  • Excessive impression: $40,000 equal losses, a half-year challenge delay, and a company-wide one-day service downtime
  • Acute impression: financial losses amounting to $80,000, a challenge delay of 1 12 months, and the incapacitation of your complete group for at the very least two days

Observe that impression ranges range from company to company since organizations have subjective definitions of what sort of financial losses, delays and downtime represent a low, medium or excessive impression.

After establishing standards to price the chance and potential impression of threat occasions, your IT audit consultants will price your IT dangers based mostly on severity, which is an index of its likelihood of incidence and its diploma of potential impression. A really probable threat that comes with an acute potential impression is a really excessive severity threat. Conversely, a negligible impression threat that will happen every year deserves a negligible threat severity ranking.

3. Threat classification

After assigning severity values ​​to every IT threat, your IT audit consultants rank your dangers based on their significance.

An acute shock threat can price you a whole lot of hundreds of {dollars}, halt business operations for days, or trigger program delays of a 12 months or extra. Moreover, if this acute shock threat is taken into account to be very likely to happen, the existence of this threat means that you’re virtually assured to undergo losses.

Due to this fact, it’s important to categorize dangers based on the results of threat severity evaluation. Acute impression dangers (very excessive severity dangers) are almost certainly to rank first, whereas negligible impression dangers (negligible severity dangers) are unlikely to go to the underside of the record.

4. Analyze IT dangers

For every threat, beginning with the chance with the best severity rating, your IT threat auditors will establish the variables, components or circumstances that will:

  • activate threat
  • forestall it
  • weaken its impression

5. Create a Threat Prevention or Threat Impression Mitigation Plan

After the chance evaluation step, your technology consultants can lastly provide you with a threat prevention or mitigation plan. Because the earlier step revealed the components that will result in the recognized dangers, your plan will incorporate measures to mitigate their impression and, ideally, forestall these dangers.

As an example, assume that the chance is the theft of delicate information; this could result in monetary injury attributable to the lack of the company’s aggressive benefit. Two of the contributing components recognized are the common accessibility of delicate data and the truth that camera-equipped cellphones are allowed all over the place delicate data will be accessed.

In this case, your IT threat prevention consultants could advocate creating tiered entry ranges, with solely a selected stage of entry to business-critical information. Entry can also be restricted to a particular location within the company. On this restricted entry space, no cameras will likely be allowed, and each room entry and information entry will likely be monitored, tracked and recorded.

Your IT consultants could even advocate a business course of reengineering. That is justified if the best way your business processes are designed is a big contributing issue to your precedence dangers.

Final Thoughts

IT auditing is a rigorous course that includes IT threat identification, severity evaluation, prioritization, evaluation, and threat prevention and mitigation planning. You want the assistance of data technology threat evaluation consultants who can carry out it correctly and accurately.

For your half, you have to decide to operationalize the suggestions of your IT audit consultants. The perfect and most detailed threat prevention and mitigation plan are ineffective if it’s not applied.


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