Summary

In this chapter, you explored various audit processes, standards, guidelines, practices, and techniques that an IS auditor is expected to use during audit assignments. You learned about risk-based audit planning and its advantages. The most important benefit of audit planning is that it helps the auditor focus on high-risk areas. You explored the major risks associated with business applications.

The important topics covered in this chapter were as follows:

• The audit department’s activities are influenced by the audit charter. The approved audit charter is the basis on which the chief audit officer carries out audit processes. The audit charter should ideally be approved by top management.
• The identification of high-risk areas within the audit scope is the first step in the audit procedure. Audit planning can be done in accordance with the findings regarding the risk-prone areas.
• Preventive controls are designed to prevent omissions, errors, or negative...