The second generally accepted standard of audit fieldwork requires the study and evaluation of controls. Potential for change in audit program procedures during the study and evaluation of controls due to the acquisition and/or integration of IT is immense. Specifically, general and application controls must be examined because of their effect on electronically encoded data. For instance, activities previously decentralized and performed by several clerical personnel may be centralized into one IT program, eliminating the control previously available through segregation of functions. Consequently, an individual having access to this program and related data files may be able to make undetected changes to the program and data files as part of an illegal act scheme.
“View Part I of the IT Audit Fieldwork: Generally Accepted Processes series here“