IT AUDIT PART 1

Summary

In this video, Ollie, an experienced IT auditor, discovers that a company he has been auditing for years is using illegal audit software due to financial difficulties. Despite knowing the risks and potential harm to the organization, Ollie decides to ignore the issue, maintaining a long-term relationship with the company's management. This decision highlights the dangers of non-compliance with IT standards and the importance of adhering to ethical practices in auditing. The video emphasizes the high risks associated with inadequate internal controls and the growing burden of future regulations for both companies and auditors.

Takeaways

• 😀 Ollie is an IT auditor with four years of experience auditing a particular company.
• 😀 During his audit, Ollie discovered that the company was using illegal software that did not comply with information system standards.
• 😀 The company explained that it couldn't afford the legal version of the software due to financial difficulties.
• 😀 Ollie, due to a long-term relationship with the company management, decided not to report the issue.
• 😀 The company's failure to comply with IT system standards resulted in high-risk internal controls that were ineffective and inefficient.
• 😀 Non-compliance with standards such as Kabat leads to poor practices and a lack of best practices within the company.
• 😀 As a result of this non-compliance, future auditing will face more stringent rules and regulations.
• 😀 The company and auditors will face greater burdens to comply with stricter rules and regulations in the future.
• 😀 The decision to ignore non-compliance poses potential long-term harm to the organization.
• 😀 The video highlights the ethical responsibility of auditors to address non-compliance, regardless of relationships or external pressures.

Q & A

What is the main topic discussed in the video?

The main topic of the video is the impact of an IT auditor failing to comply with the professional code of ethics.

Who are the main individuals featured in the video?

The main individuals featured in the video are AI SIA, Nabila, Shay, and Ollie, an IT auditor.

What issue did Ollie discover during his audit of the company?

Ollie discovered that the company was using illegal audit software that did not comply with information system standards and could be harmful to the organization.

Why did the company use illegal audit software?

The company used the illegal audit software because they were facing financial difficulties and could not afford to purchase the original version.

How did Ollie respond when the company explained their situation?

Ollie decided to ignore the issue and did not report it, citing his long-term relationship with the company and their financial difficulties.

What are the potential risks of using illegal software in an organization?

Using illegal software can lead to non-compliance with industry standards, which increases the risk to the company's internal control systems, making them less effective and efficient.

What standards or guidelines should the company follow for their IT systems?

The company should follow guidelines such as the Kabat framework, which provides best practices for IT systems.

What are the long-term consequences of failing to comply with IT system standards?

The long-term consequences include more stringent rules and regulations that will burden both auditors and companies. This could make compliance more difficult and costly in the future.

What impact could non-compliance have on an auditor's career?

Non-compliance could harm an auditor's reputation and credibility, potentially leading to professional consequences or a loss of trust from clients and colleagues.

What is expected of auditors in the future regarding compliance with regulations?

In the future, auditors will need to adhere to stricter rules and regulations, staying updated with the latest industry standards and ensuring they comply fully in their audits.