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IT Audit Framework ???
IT Audit Framework ???
About ISACA
For more than 50 years, ISACA® (www.isaca.org) has advanced the best talent, expertise and learning in
technology. ISACA equips individuals with knowledge, credentials, education and community to progress their
careers and transform their organizations, and enables enterprises to train and build quality teams. ISACA is a
global professional association and learning organization that leverages the expertise of its 145,000 members who
work in information security, governance, assurance, risk and privacy to drive innovation through technology. It has
a presence in 188 countries, including more than 220 chapters worldwide.
Disclaimer
ISACA has designed and created its IT Audit Framework (ITAF™): A Professional Practices Framework for IT
Audit, 4th Edition (the “Work”) primarily as an educational resource for assurance practitioners. ISACA makes no
claim that use of any of the Work will assure a successful outcome. The Work should not be considered inclusive of
all proper information, procedures and tests or exclusive of other information, procedures and tests that are
reasonably directed to obtaining the same results. In determining the propriety of any specific information,
procedure or test, assurance practitioners should apply their own professional judgment to the specific
circumstances presented by the particular systems or information technology environment.
© 2020 ISACA. All rights reserved. No part of this publication may be used, copied, reproduced, modified,
distributed, displayed, stored in a retrieval system or transmitted in any form by any means (electronic, mechanical,
photocopying, recording or otherwise) without the prior written authorization of ISACA.
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IT Audit Framework (ITAF™): A Professional Practices Framework for IT Audit, 4th Edition
Printed in the United States of America
2 IT Audit Framework (ITAFTM): A Professional Practices Framework for IT Audit, 4th Edition
ISACA. All Rights Reserved.
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ACKNOWLEDGMENTS
Acknowledgments
Expert Reviewers
Manoj Agarwal, CISA, CIA, CA, CRMA, DISA, Metro Brands Limited, India
G.M. Faruk Ahmed, CISA, Rupali Bank Limited, Bangladesh
Winnie Ang, CISA, CISM, Singapore
Anagha Apte, CISA, CRISC, CISM, Birlasoft Ltd., USA
Ercument Ari, CISA, CRISC, CDPSE, CEH, CIPM, CIPP/E, CRMA, FIP, ISO 27001/22301/20000,
SURPRISE Consultancy Services, Turkey
Kenia Arias, CISA, A-FE Consulting LLC, USA
Bode Bary Aro, CISA, CRISC, Enugu Electricity Distribution Company, Nigeria
Mais Barouqa, CISA, CRISC, CGEIT, COBIT 5 FL, ISO27K, ITIL, GRCP, Deloitte, Jordan
Marquita Bass, CISA, PMP, Rausch Advisory, USA
Cindy Baxter, CISA, ITIL, State Street Corporation, USA
Zsolt Bederna, CISA, CRISC, CISM, CGEIT, CEH, CISSP, ITIL-F, Cyex OÜ, Hungary
Vijay A. Bhalerao, CISA, COBIT-F, MCSA, ISO 27001 LA, ITIL-F, Unisoft Computrade Pvt. Ltd., India
Parmeet Kaur Bhatiya, CISA, PricewaterhouseCoopers, United Arab Emirates
Bakan Borupile, CISA, MCSA, MCSE, Btech, Mascom Wireless, Botswana
Ricardo Jimenez Caicedo, CISA, Ernst & Young, Colombia
Jules Chahine, CISA, CISM, PMP, Jconseil, Canada
Elastos Chimwanda, CISA, CIA, ZWMB Bank Limited, Zimbabwe
Joyce Chua, CISA, CISM, CDPSE, (C)CISO, CFE, CIA, CIPM, CIPP(A), CIPP(E), CITPM, ITIL, MCP,
PMP, IRCA ISMS Associate Auditor, Sony Electronics, Singapore
Ian Cooke, CISA, CRISC, CGEIT, CDPSE, COBIT 5 Assessor and Implementer, CFE, CIPM, CIPP/E,
CIPT, CPTE, DipFM, FIP, ITIL Foundation, Six Sigma Green Belt, Ireland
Ronald Franke, CIA, CICA, CFE, USA
Bhaskar Ghosh, CISA, Wintrust Financial Corporation, USA
Miguel A. Gonzalez, CISA, ITESM, México
J. Winston Hayden, CISA, CRISC, CISM, CGEIT, South Africa
Andrew Hinder, CISA, CIA, CMIIA, CRMA, QIAL, BAE Systems, United Kingdom
Oluwatosin Micheal Iroko, CISA, CRISC, CISM, CEH, ISO 27001, ITIL, Alberta Blue Cross, Canada
Marko Jagodic, CISA, CRISC, VRIS LLC., Slovenia
Ashane J.W. Jayasekara, CISA, BDO, Sri Lanka
Daniel Jones, CISA, CRISC, CISM, Devon Energy, USA
Abbie Anne Jullien, CISA, CDPSE, Life Extension Foundation Buyers Club Inc., USA
Ookeditse Kamau, CISA, CDPSE, CEH, CIA, CRMA, Prudent Vine Pty (Ltd), Botswana
Mladen Kandic, CISA, CIA, Eurobank, Serbia
Joanna Karczewska, CISA, Poland
Glenn Kirke, CISA, Integrated Audit and Compliance, USA
Matthias Kraft, CISA, CRISC, CISM, CGEIT, CAC, DPO, Fidelity International, Luxembourg
Abhishek Kumar, CISA, ISO 27001 LA, ISO 22301 LA, Deloitte, India
Hiu Sing Lam, CISA, FRM, PMP, Hong Kong
James Lam, CISA, CRISC, CISM, CDPSE, TOGAF, Aon Cybersecurity Advisory, USA
Larry L. Llirán, CISA, CISM, Precelsus Consulting, Puerto Rico
Angel Giovanni Vasquez Lopez, CISA, Banco GYT Continental, Guatemala
Michael Malcolm, CISA, CFE, CFSA, CGAP, CIA, CRMA, Opentext Corporation, Canada
A T Manjunath, CISA, CCSK, CSA STAR AUDITOR, Applied Materials, India
Rafael Pérez Marín, CISA, Venezuela
Larry Marks, CISA, CRISC, CISM, CGEIT, CDPSE, CISSP, ITIL, PMP, USA
Vivek Mathivanan, CISA, CRISC, CGEIT, Worley, Australia
Laurie E. McDonald, CISA, CRISC, CISM, CIA, CPA, Computershare, USA
Alisdair McKenzie, CISA, CISSP, ITCP, IS Assurance Services (Retired), New Zealand
Benedicta Mlingi, CISA, NMB Bank Plc., Tanzania
Juan Carlos Morales, CISA, CRISC, CISM, CGEIT, COBIT 2019, Guatemala
Donald J. Morgan, CISA, Farm Credit Canada, Canada
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ACKNOWLEDGMENTS
Acknowledgments (cont.)
Syed Aun Muhammad, CISA, Canada
Christine Lilian Mukhongo, CISA, CRISC, CISM, Kenya Universities & Colleges Central Placement Service, Kenya
Sitambaram Ainslei Naidu, CISA, CIA, Edcon, South Africa
Jorge Alberto R.F. Lima, CISA, CRISC, CISM, CGEIT, Santa Casa Da Misericórdia Do Porto, Portugal
Tushar Nerurkar, CISA, CISSP, PMP, PricewaterhouseCoopers, USA
Daisha Ngo, CISA, CPA, CRMA, Spectrum Health, USA
Geoffrey Nkuutu, CISA, Fellow Chartered Certified Accountant (FCCA), Wazalendo Savings & Credit
Cooperative Society Limited, Uganda
Alexander Obraztsov, CISA, CISSP, PMP, Société Générale (New York), USA
Darren O’Brien, CISA, CRISC, Vitality, United Kingdom
Odediran Clement Olusola, CISA, CRISC, CISM, CDPSE, COBIT 5 Assessor, MCPN, MNIM, MNSE,
Union Bank Plc. Nigeria, Nigeria
Anas Olateju Oyewole, CISA, CRISC, CISM, CDPSE, CCSP, CISO, CISSP, PMP, Indigo Books and Music, Canada
Chirag Ali Peerzada, CISA, CEH, ISO 27001 LA, ISO 22301 LI, Mahindra Special Service Group, India
John Pouey, CISA, CRISC, CISM, CIA, Entergy, USA
Shahid Qureshi, CISA, CGA (Canada), CIA, CPA, FCCA (UK), FCIS, FCMA, FCSM, Leverage
Global Inc., Canada
Sreechith Radhakrishnan, CISA, CRISC, CISM, CGEIT, CDPSE, COBIT Assessor, ISO 27001 LA, ISO 20000 LA,
ISO 37001 LA, ISO 22301 LA, Global Success Systems FZ LLC, United Arab Emirates
Allan Rono, CISA, CISM, ITIL, Liberty Group, Kenya
Sampa David Sampa, CISA, World Vision International, Zambia
Megah Santio, CISA, CISM, COBIT Assessor, CIA, Australia
Garimella Chandrasekhar Sarma, CISA, CRISC, CDPSE, CFE, CtrlS Datacenters, India
Joseph A. Shook, CISA, CFE, CIA, CRMA, Shook & Company, United States
S. Phani Krishna Sunkaranam, CISA, CRISC, CISM, CISSP, ITIL, India
Luong Trung Thanh, CISA, CISM, CGEIT, Vietnam
Nancy J. Thompson, CISA, CISM, CGEIT, PMP, NJT Cybersecurity, USA
Catalin Tiganila, CISA, CRISC, CISM, CBCP, CIPM, CISSP, Deloitte, Luxembourg
Roberto Hernandez Rojas Valderrama, CISA, CRISC, CISM, CGEIT, CDPSE, PMP, COBIT 2019-F, CSX-F,
Devops-F, ITIL-F, ISO27001 LA, Scrum-F, Auditoria Superior de la Federacion, México
Marisela Parra Valencia, CISA, ITIL, Costa Rica
Kaysi Veatch, CISA, CSX-F, CIA, Maxar, USA
Ionnis C. Vittas, CISA, CISM, Quest Holdings SA, Greece
Ross E. Wescott, CISA, CCP, CIA (Retired), CUERME, Wescott & Associates, USA
Surendra Yakkali, CISA, CSM, CMMI Associate, ITIL, SAFe 5, OptumServe Technology Services Inc., USA
Board of Directors
Tracey Dedrick, Chair, Former Chief Risk Officer, Hudson City Bancorp, USA
Rolf von Roessing, Vice-Chair, CISA, CISM, CGEIT, CDPSE, CISSP, FBCI, Partner, FORFA Consulting AG,
Switzerland
Gabriela Hernandez-Cardoso, Independent Board Member, Mexico
Pam Nigro, CISA, CRISC, CGEIT, CRMA, Vice President–Information Technology, Security Officer, Home Access
Health, USA
Maureen O’Connell, Board Chair, Acacia Research (NASDAQ), Former Chief Financial Officer and Chief
Administration Officer, Scholastic, Inc., USA
David Samuelson, Chief Executive Officer, ISACA, USA
Gerrard Schmid, President and Chief Executive Officer, Diebold Nixdorf, USA
Gregory Touhill, CISM, CISSP, President, AppGate Federal Group, USA
Asaf Weisberg, CISA, CRISC, CISM, CGEIT, Chief Executive Officer, introSight Ltd., Israel
Anna Yip, Chief Executive Officer, SmarTone Telecommunications Limited, Hong Kong
Brennan P. Baybeck, CISA, CRISC, CISM, CISSP, ISACA Board Chair, 2019-2020, Vice President and
Chief Information Security Officer for Customer Services, Oracle Corporation, USA
Rob Clyde, CISM, ISACA Board Chair, 2018-2019, Independent Director, Titus, and Executive Chair,
White Cloud Security, USA
Chris K. Dimitriadis, Ph.D., CISA, CRISC, CISM, ISACA Board Chair, 2015-2017, Group Chief Executive Officer,
INTRALOT, Greece
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TABLE OF CONTENTS
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TABLE OF CONTENTS
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INTRODUCTION
Introduction
ISACA’s Information Technology Audit Framework (ITAF) is a comprehensive IT audit framework that:
Establishes standards that address IT audit and assurance practitioners’ roles and responsibilities, ethics,
expected professional behavior, and required knowledge and skills;
Defines terms and concepts specific to IT audit and assurance;
Provides guidance and techniques for planning, performing and reporting of IT audit and assurance
engagements.
Based on ISACA material, ITAF provides a single source for IT audit and assurance practitioners to obtain guidance
on the performance of audits and the development of effective audit reports. The 3rd Edition of ITAF incorporated IT
audit and assurance standards and guidance effective 1 November 2013. Prior to issuing the 4th Edition of ITAF,
ISACA released an exposure draft for comment, and more than 65 reviewers provided their feedback. The 4th Edition
of ITAF is effective October 2020.
Organization
INTRODUCTION
Performance standards (1200 series)—Deal with the conduct of the engagement, such as planning and
supervision, scoping, risk assessment, resource mobilization, engagement management, audit and assurance
evidence, and the exercising of professional judgment and due care.
Reporting standards (1400 series)—Address the types of reports, the means of communication, and the
information communicated.
ITAF guidelines provide the IT audit and assurance practitioner with information and direction about an IT audit or
assurance engagement. In line with the three categories of standards outlined above, guidelines focus on various
audit approaches, methodologies and related material to assist in planning, executing, assessing, testing and reporting
on IT processes, controls, and related IT audit or assurance initiatives. Guidelines also help clarify the relationships
between activities and initiatives undertaken by the enterprise and those undertaken by IT. Applicable guidelines
follow related standards.
ISACA’s website provides specific information on various methodologies, tools and templates, and includes
direction in their application and use to operationalize the information in the guidance. An example is ISACA’s
creation of the Performance Guidelines 2208: Information Technology Audit Sampling, which is a companion to the
ITAF framework. These guidelines support IT audit and assurance practitioners’ use of sampling where a conclusion
about a total population is reached when audit procedures are applied to less than 100 percent of that population.
Additional tools and techniques, which also include white papers, audit programs and books, are available at
www. isaca.org/resources/insights-and-expertise/audit-programs-and-tools.
Using ITAF
The IT audit or assurance process involves the performance of specific procedures to provide reasonable assurance
about the subject matter. IT audit and assurance practitioners undertake assignments designed to provide assurance at
varying levels, ranging from review to attestation or examination.
Each IT audit or assurance assignment must adhere to prescribed standards in terms of whether individuals are
qualified to perform the work, how the work is performed, what work is performed and how the findings will be
reported based on various characteristics of the assignment and the nature of the results obtained.
If the engagement is to be performed by one individual, that individual must possess the skill and knowledge
required to complete the engagement. If more than one individual is to perform the engagement, the collective team
needs to possess the skill and knowledge to perform the work.
Several critical suppositions are inherent in any IT audit or assurance assignment, including the following:
The subject matter is identifiable and subject to audit.
There is a high probability of successful completion of the project.
The approach and methodology are free from bias.
The project is of sufficient scope to meet the IT audit or assurance objectives.
The project will lead to a report that is objective and that will not mislead the reader.
The standards are mandatory in all cases. The term “shall” indicates “must.” Any deviations from the standards shall
be addressed prior to completion of the IT audit or assurance engagement.
The guidelines may not be applicable in all situations, but they should always be considered. The guidelines do allow
IT audit and assurance practitioners a degree of flexibility. So when reviewing guidelines to determine applicability,
practitioners should use professional judgment, be prepared to justify any significant deviation from the guidelines or
omission of relevant sections of the guidance, and seek additional guidance if necessary.
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INTRODUCTION
Tools and techniques represent supplementary material and information that support the guidance. In some cases, the
techniques present alternatives or even a range of techniques, many of which may be applicable. The IT audit and
assurance practitioner should select only suitable techniques that produce relevant, objective and unbiased
information.
In line with ITAF’s continued evolution, section numbers intentionally include gaps for insertion of future guidance.
While the ITAF standards provide IT audit and assurance practitioners with comprehensive guidance and direction,
some situations may require practitioners to use standards issued by another organization.
When the IT audit and assurance practitioner has cited compliance with ITAF standards and conflicts arise between
ITAF and the applicable standards of another organization, the IT audit and assurance practitioner should use ITAF
standards as the prevailing standards for conducting reviews and reporting the results.
Should the IT audit and assurance practitioner be required to adhere to standards other than ITAF for regulatory
purposes or operational expectations, the IT audit and assurance practitioner may:
Use professional standards required by other authoritative bodies in conjunction with ITAF standards,
Cite the use of other required standards in their reports.
Throughout this document, common words are used with specific meanings that apply to the most common types of
engagements performed by IT audit and assurance practitioners. In those instances, a definition is provided in
Appendix C to ITAF. This ensures that the words and their meanings within the context of this document are
understood and consistently applied.
Where practical, ITAF’s terms and definitions generally are consistent with commonly used terminology in the
practice of professional auditing and in information technology and security; however, practitioners should consult
the most current, original source standards relevant to the specific type of engagement(s) to be performed to ensure
the most current and appropriate terms and definitions are used.
For other terms and definitions not included in ITAF, a complete glossary is available on the ISACA website,
www.isaca.org/glossary.
ISACA sets forth this Code of Professional Ethics to guide the professional and personal conduct of members of the
association and/or its certification holders.
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INTRODUCTION
Failure to comply with this Code of Professional Ethics can result in an investigation into a member’s or certification
holder’s conduct and, ultimately, in disciplinary measures.
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Standards Statements
General Standards
1001.1 The IT audit and assurance function shall document the audit function appropriately in an audit charter,
indicating purpose, responsibility, authority and accountability.
1001.2 The IT audit and assurance function shall have the audit charter agreed upon and formally approved by those
charged with governance and oversight of the audit function, e.g., the board of directors and/or the audit committee.
1001.3 The IT audit and assurance function shall communicate the audit charter to executive/senior management.
Also, relevant elements of the audit charter shall be shared with groups being audited at entrance meetings and/or
through engagement letters.
1001.4 Through review of the audit charter on a periodic basis, the audit and assurance function’s responsibilities, as
reflected in the audit charter, shall remain aligned with the enterprise’s mission and strategies. Immediate review of
the audit charter is warranted should the enterprise’s mission or strategies change, or if the audit function’s
responsibilities change.
1002.1 The IT audit and assurance function shall be free from conflicts of interest and undue influence in all matters
related to audit and assurance engagements. Any impairment of independence (in fact or appearance) is identified
and disclosed to the appropriate parties.
1002.2 The IT audit and assurance function shall have a functional reporting relationship (e.g., reporting to the board
of directors) that supports the function’s ability to remain free from undue influence.
1002.3 The IT audit and assurance function shall have an administrative reporting relationship that supports the
function’s unhindered performance of its responsibilities (e.g., scope of engagement, fieldwork or reporting).
1003.1 IT audit and assurance practitioners shall be objective in all matters related to audit and assurance
engagements.
1004.1 IT audit and assurance practitioners shall have reasonable expectation that the engagement can be completed
in accordance with applicable IT audit and assurance standards and, where required, other industry standards or
applicable laws and regulations that will result in a professional opinion or conclusion.
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1004.2 IT audit and assurance practitioners shall have reasonable expectation that the scope of the engagement
enables a conclusion on the subject matter and that any scope limitations are addressed.
1004.3 IT audit and assurance practitioners shall have reasonable expectation that management understands its
obligations and responsibilities with respect to providing appropriate, relevant and timely information required to
perform the engagement.
1005.1 In accordance with ISACA’s Code of Professional Ethics, auditors will exercise due diligence and
professional care. They will maintain high standards of conduct and character, and they will refrain from engaging in
acts that may discredit themselves or the profession. Privacy and confidentiality of information obtained during the
course of the auditor’s duties should be maintained. Further, this information should not be used for personal benefit,
nor should the information be disclosed unless required by legal authority.
1006 Proficiency
1006.1 IT audit and assurance practitioners, collectively with others assisting with the audit and assurance
engagement, shall possess the professional competence to perform the work required.
1006.2 IT audit and assurance practitioners shall possess adequate knowledge of the subject matter to perform their
roles in IT audit and assurance engagements.
1006.3 IT audit and assurance practitioners shall maintain professional competence through appropriate continuing
professional education and training.
1007 Assertions
1007.1 IT audit and assurance practitioners shall review the assertions against which the subject matter will be
assessed to determine that such assertions are capable of being audited and that the assertions are sufficient, valid and
relevant.
1008 Criteria
1008.1 IT audit and assurance practitioners shall select criteria, against which the subject matter will be assessed,
that are objective, complete, relevant, reliable, measurable, understandable, widely recognized, authoritative, and
understood by, or available to, all readers and users of the report.
1008.2 IT audit and assurance practitioners shall consider the acceptability of the criteria and focus on criteria that
are recognized, authoritative and publicly available.
Performance Standards
1201.1 The IT audit and assurance function shall use an appropriate risk assessment approach (i.e., data-driven with
both quantitative and qualitative factors) and supporting methodology to develop the overall IT audit plan and to
determine priorities for the effective allocation of IT audit resources.
1201.2 IT audit and assurance practitioners shall identify and assess risk relevant to the area under review when
planning individual engagements.
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1201.3 IT audit and assurance practitioners shall consider subject matter risk, audit risk and related exposure to the
enterprise when planning audit engagements.
1202.1 The IT audit and assurance function shall establish an overall strategic plan resulting in short-term and long-
term audit schedules. Short-term planning consists of audits to be performed within the year, while long-term
planning is comprised of audits based on risk-related matters within the enterprise’s information and technology
(I&T) environment that may be performed in the future.
1202.2 Both short-term and long-term audit schedules should be agreed upon with those charged with governance
and oversight (e.g., audit committee) and communicated within the enterprise.
1202.3 The IT audit and assurance function shall modify its short-term and/or long-term audit schedules to be
responsive to organizational needs (i.e., unexpected events or unplanned initiatives). Any audit displaced to
accommodate an audit of an unexpected event or unplanned initiative should be reassigned to a future period.
1203.1 IT audit and assurance practitioners shall plan each IT audit and assurance engagement to address the nature,
timing and extent of audit procedures to be performed. The plan should include:
Areas to be audited
Objectives
Scope
Resources (e.g., staff, tools and budget) and schedule dates
Timeline and deliverables
Compliance with applicable laws/regulations and professional auditing standards
Use of a risk-based approach for engagements that are not related to legal or regulatory compliance
Engagement-specific issues
Documentation and reporting requirements
Use of relevant technology and data analysis techniques
Consideration of the cost of the engagement relative to the potential benefits
Communication and escalation protocols for situations that may arise during the performance of an IT audit
engagement (e.g., scope limitations or unavailability of key personnel)
During fieldwork, it may become necessary to modify audit procedures created during planning as the engagement
progresses.
1203.2 IT audit and assurance practitioners shall develop and document an IT audit and assurance engagement audit
program that describes the step-by-step procedures and instructions to be used to complete the audit.
1204.1 IT audit and assurance practitioners shall conduct the work in accordance with the approved IT audit plan to
cover identified risk, and within the agreed-on schedule.
1204.2 IT audit and assurance practitioners shall provide supervision to IT audit staff for whom they have
supervisory responsibility to accomplish audit objectives and meet applicable professional audit standards.
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1204.3 IT audit and assurance practitioners shall accept only tasks that are within their knowledge and skills, or for
which they have a reasonable expectation of either acquiring the skills during the engagement or achieving the task
under supervision.
1204.4 IT audit and assurance practitioners shall obtain and preserve sufficient and appropriate evidence to achieve
the audit objectives.
1204.5 IT audit and assurance practitioners shall document the audit process and describe the audit work and the
audit evidence that support findings and conclusions.
1204.6 IT audit and assurance practitioners’ findings and conclusions are to be supported by root cause analysis and
interpretation of this evidence.
1204.7 IT audit and assurance practitioners shall provide an appropriate audit opinion or conclusion and include any
scope limitation where required evidence is obtained through additional test procedures.
1205 Evidence
1205.1 IT audit and assurance practitioners shall obtain sufficient and appropriate evidence to draw reasonable
conclusions.
1205.2 Applying professional skepticism, IT audit and assurance practitioners shall evaluate the sufficiency of
evidence obtained to support conclusions and achieve engagement objectives.
1205.3 Along with other working papers, IT audit and assurance practitioners shall preserve evidence for a time
period that aligns with formally defined and approved retention periods.
1206.1 IT audit and assurance practitioners shall consider using the work of other experts for the engagement, where
appropriate.
1206.2 IT audit and assurance practitioners shall assess and approve the adequacy of the other experts’ professional
qualifications, competencies, relevant experience, resources, independence and quality-control processes prior to the
engagement.
1206.3 IT audit and assurance practitioners shall assess, review and evaluate the work of other experts as part of the
engagement, and document the conclusion on the extent of use and reliance on their work.
1206.4 IT audit and assurance practitioners shall determine whether the work of other experts, who are not part of the
engagement team, is adequate and complete to conclude on the current engagement objectives. The practitioners
should also clearly document the conclusion.
1206.5 IT audit and assurance practitioners shall determine whether the work of other experts will be relied upon and
incorporated directly or referred to separately in the report.
1206.6 IT audit and assurance practitioners shall apply additional test procedures to gain sufficient and appropriate
evidence in circumstances where the work of other experts does not provide sufficient and appropriate evidence.
1206.7 IT audit and assurance practitioners shall provide an audit opinion or conclusion, and include any scope
limitation where required evidence is not obtained through additional test procedures.
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1207.1 IT audit and assurance practitioners shall consider the risk of irregularities and illegal acts during the
engagement.
1207.2 IT audit and assurance practitioners shall document and communicate irregularities or illegal acts to the
appropriate party in a timely manner. Note that some communications (e.g., with regulators) may be restricted. As a
result, the practitioner’s communications may require discussion with those charged with governance and oversight
of the audit function (e.g., the board of directors and/or the audit committee).
Reporting Standards
1401 Reporting
1401.1 IT audit and assurance practitioners shall provide a report to communicate the results of each engagement.
1401.2 IT audit and assurance practitioners shall ensure findings in the audit report are supported by sufficient and
appropriate evidence.
1402.1 IT audit and assurance practitioners shall monitor and periodically report to those charged with governance
and oversight of the audit function (e.g., the board of directors and/or the audit committee) management’s progress
on findings and recommendations. The reporting should include a conclusion on whether management has planned
and taken appropriate, timely action to address reported audit findings and recommendations.
1402.2 Progress on the overall status of the implementation of audit findings should be regularly reported to the audit
committee, if one is in place.
1402.3 Where it is determined that the risk related to a finding has been accepted and is greater than the enterprise’s
risk appetite, this risk acceptance should be discussed with senior management. The acceptance of the risk
(particularly failure to resolve the risk) should be brought to the attention of the audit committee (if one is in place)
and/or the board of directors.
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GENERAL STANDARDS
GENERAL STANDARDS
General Standard 1001: Audit Charter
Statements 1001.1 The IT audit and assurance function shall document the audit function appropriately in an
audit charter, indicating purpose, responsibility, authority and accountability.
1001.2 The IT audit and assurance function shall have the audit charter agreed upon and formally
approved by those charged with governance and oversight of the audit function, e.g., the board of
directors and/or the audit committee.
1001.3 The IT audit and assurance function shall communicate the audit charter to
executive/senior management. Also, relevant elements of the audit charter shall be shared with
groups being audited at entrance meetings and/or through engagement letters.
1001.4 Through review of the audit charter on a periodic basis, the audit and assurance function’s
responsibilities, as reflected in the audit charter, shall remain aligned with the enterprise’s mission
and strategies. Immediate review of the audit charter is warranted should the enterprise’s mission
or strategies change, or if the audit function’s responsibilities change.
2001.2.1 An audit charter shall document the IT audit and assurance function’s:
Independence, code of ethics and standards
Purpose, responsibility, authority and accountability
Protocols that the IT audit and assurance practitioner will follow in the performance of
engagements, including but not limited to communication and escalation
Roles and responsibilities of the auditee during the IT audit or assurance engagement
The IT audit and assurance function’s role in reporting irregularities and illegal acts
2001.2.2 The audit charter should clearly address the purpose, responsibility, authority and accountability
of the audit function (see 2001.2.1). These four aspects are set out in the following sections.
Purpose of the audit function is to evaluate and test the design and execution of controls
implemented by management. The audit charter should contain the following sections that
support the audit function in achieving its purpose:
Aims/goals of the audit function provide a functional and organizational framework in which
the audit function operates.
Objectives of the audit function and the audit function’s mission statement (should the audit
function have one) bring a structured approach to evaluate and improve the design and
operational effectiveness of the risk management processes, internal control system and
2001.2.3
operations/governance of information systems.
Scope of the audit function applies either to the entire enterprise or to a specific organization
within the enterprise.
Work performed by the audit function may include information systems audits, compliance
audits, financial audits, operational audits, integrated audits, administrative audits,
specialized audits (third-party service audits, fraud audits or forensic audits), computer
forensic audits and functional audits. It also may include nonaudit services, such as
consulting services on projects.
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2001.2.4 Responsibility of the audit function is to add value to the enterprise, ensuring that organizational
perspectives such as strategy, mission and regulatory/compliance expectations are integrated in its
work, and to abide by professional expectations (e.g., ethics, professional development). The audit
charter should contain the following sections to facilitate the audit function:
Independence details the implementation of the independence requirement for the audit function
and practitioners, as described in Standards 1002 Organizational Independence and 1003 Auditor
Objectivity. The IT audit and assurance function should ensure its independence by:
Assessing its independence on a periodic basis, at least annually
Creating and maintaining a formal protocol related to identification and reporting of potential
impairments to independence
The results of the independence assessment and the impairments protocol should be reported to
those charged with governance and oversight of the audit function, e.g., the board of directors and/or
the audit committee.
Relationship with external audit firms details the internal IT audit and assurance function’s
reliance strategy with the external auditor:
Meeting with the external auditors to coordinate the work effort to minimize duplication of
effort
Providing access to practitioners’ working papers, documentation and evidence
Considering the work planned by the external auditors when drafting the audit plan for the
coming period
Auditee’s expectations detail the services and deliverables the auditees can expect from the audit
function and practitioners:
Description of identified problems, consequences and possible resolutions relating to the
area of responsibility of the auditee
Possibility of including management response and corrective actions taken on findings in the
audit report. This includes references to related service level agreements (SLAs) for items
such as delivery of reports, response to auditee complaints, quality of service, review of
performance, reporting process and agreement of findings.
Auditee requirements detail the responsibilities of the auditee, e.g., all auditees are required to
make themselves available and assist the audit function and practitioners in fulfilling assigned
responsibilities. Auditee requirements also provide clarity concerning management’s
responsibilities and the audit function’s responsibilities.
Abide by professional standards established by the auditor’s organization and any standard-
setting body to which the auditor has membership.
Compliance with standards that detail the requirements with which the audit function and
practitioners will adhere, e.g., the audit function and practitioners will adhere and act according to
all the ISACA ITAF Audit and Assurance Standards and Guidelines.
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2001.2.5 Authority of the audit function should contain the following sections:
Right of access to relevant information, systems (i.e., logs, activities and controls built into
systems), personnel and locations by practitioners performing an audit engagement. The
audit function, represented by IT audit practitioners:
Has authorized access to any and all records, documentation, systems and locations
necessary for performance of an audit engagement, and can seek assistance from
executive management in obtaining such access
Has the authority to seek any information from an employee, consultant or contractor
when performing an audit engagement
Limitations of authority of the audit function and practitioners, if any
Processes to be audited that the audit function is authorized to audit—e.g., the audit function
is free to determine the processes it will audit, based on the risk-based audit plan
2001.2.6 Accountability of the audit and assurance function includes, but is not limited to:
Distributing written communications (e.g., reports for audits and memoranda for nonaudit
engagements) to the appropriate stakeholders and to those charged with governance and
oversight of the audit and assurance function (e.g., the board of directors and/or the audit
committee)
Monitoring and reporting of management’s progress on agreed-on implementations (i.e.,
corrective actions) taken in response to audit recommendations
Reporting of the audit and assurance function’s performance metrics (e.g., performance
relative to the audit plan and budget) to those charged with governance and oversight of the
audit and assurance function (e.g., the board of directors and/or the audit committee)
Reporting to those charged with governance and oversight of the audit and assurance
function (e.g., the board of directors and/or the audit committee) on the function’s
independence and any potential impairments to independence and the four aspects of the
purpose, responsibility, authority and accountability of the audit function
Quality assurance process (e.g., interviews, customer satisfaction surveys, assignment
performance surveys) that establishes an understanding of auditees’ needs and expectations
relevant to the audit function. These needs should be evaluated against the audit charter with
a view to improving the service or changing the service delivery or audit charter, as
necessary.
Staffing rules for audit engagements, which may include but are not limited to:
Reliance on the audit charter permitting practitioners to be involved in performing
nonaudit services (e.g., consulting services) and the broad nature, timing and extent of
such services, to ensure that independence and objectivity are not impaired. This could
eliminate or minimize the need to obtain specific mandates for each nonaudit service on
a case-by-case basis.
Establishing a minimum time period that must elapse before practitioners can
participate on audit engagements in areas in which they performed nonaudit services
that impair independence.
Agreed-on actions regarding the audit function’s and practitioners’ behavior, e.g.,
penalties when either party fails to carry out its responsibilities.
Communication with auditees details the frequency and communication channels
through which the audit function will communicate with the auditees.
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COBIT 2019
Management Purpose
Objectives
MEA02 Managed Obtain transparency for key stakeholders on the adequacy of the system of internal controls and
System of Internal thus provide trust in operations, confidence in the achievement of enterprise objectives and an
Control adequate understanding of residual risk.
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
Statement 1002.1 The IT audit and assurance function shall be free from conflicts of interest and undue
influence in all matters related to audit and assurance engagements. Any impairment of
independence (in fact or appearance) is identified and disclosed to the appropriate parties.
1002.2 The IT audit and assurance function shall have a functional reporting relationship (e.g.,
reporting to the board of directors) that supports the function’s ability to remain free from undue
influence.
1002.3 The IT audit and assurance function shall have an administrative reporting relationship
that supports the function’s unhindered performance of its responsibilities (e.g., scope of
engagement, fieldwork or reporting).
2002.1 Introduction The guideline content section is structured to provide information on the IT audit and assurance
function’s independence:
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2002.2.2 The audit function should avoid performing nonaudit roles in IT initiatives that require assumption
of management responsibilities, because such roles could impair future independence. The
independence and accountability of the audit function should be addressed in the audit charter.
The audit function’s independence may be impaired if an auditor is scheduled to plan or to
participate on an engagement in an area in which the auditor had direct management
responsibility. Note that the IT audit and assurance function, in collaboration with the enterprise’s
external audit firm, can determine responsibilities that constitute direct or indirect management.
These two groups can also identify the acceptable time frame between the auditor’s performance
of direct management responsibilities and participation on an engagement in the area.
2002.3.1 The audit function should report to a level within the enterprise that allows it to act with complete
organizational independence. The independence should be defined in the audit charter and
confirmed by the audit function to the board of directors and those charged with governance on a
regular basis, at least annually.
2002.3.2 To ensure organizational independence of the audit function, the following should be reported to
those charged with governance (e.g., the board of directors) for their input and/or approval:
The audit resource plan and budget
The risk-based audit plan
Performance follow-up performed by the audit function on the IT audit activity
Follow-up of significant scope or resource limitations
2002.3.3 To ensure organizational independence of the audit function, explicit support is needed from both
the board and executive management. Executive management’s support could include written
communication to all levels of the organization.
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COBIT 2019
Governance and
Purpose
Management
Objectives
EDM01 Ensured Provide a consistent approach integrated and aligned with the enterprise governance approach.
Governance I&T-related decisions are made in line with the enterprise’s strategies and objectives and desired
Framework Setting and value is realized. To that end, ensure that I&T-related processes are overseen effectively and
Maintenance transparently; compliance with legal, contractual and regulatory requirements is confirmed; and
the governance requirements for board members are met.
APO01 Managed I&T Implement a consistent management approach for enterprise governance requirements to be
Management met, covering governance components such as management processes; organizational
Framework structures; roles and responsibilities; reliable and repeatable activities; information items; policies
and procedures; skills and competencies; culture and behavior; and services, infrastructure and
applications.
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
Statement 1003.1 IT audit and assurance practitioners shall be objective in all matters related to audit and
assurance engagements.
These guidelines provide a framework that enables the IT audit and assurance practitioner to:
Establish whether objectivity may be, or may appear to be, impaired
Consider potential alternative approaches to the audit process when objectivity is, or may appear to be, impaired
Reduce or eliminate the impact of impaired objectivity of IT audit and assurance practitioners performing nonaudit
roles, functions and services
Determine disclosure requirements when required objectivity may be, or may appear to be, impaired.
Conduct the IT audit or assurance engagement with an impartial and unbiased frame of mind in addressing assurance
issues and reaching conclusions
Be mindful of potential impairments to objectivity during all phases of engagements
Disclose the details of impairments to objectivity to the appropriate parties
2003.1 Introduction The guidelines are structured to provide information on the following key IT audit and assurance
engagement topics:
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2003.9 Reporting
2003.2.4 Practitioners should consider applying ITAF guidance to identify potential threats to objectivity,
evaluate the significance of the threats and implement appropriate safeguards when performing
nonaudit services or roles.
2003.2.5 An auditor should not perform nonaudit services or roles in areas where it is likely that a current
or future audit or assurance engagement is planned and would likely be performed by the same
auditor. If the entity has no other recourse (i.e., engaging an alternative internal or external
resource), the auditor’s involvement in the nonaudit service should be approved by the chief audit
executive (or VP/director of audit) and by those formally charged with governance and oversight
of the audit function (e.g., the board of directors and/or the audit committee).
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2003.3.2 Safeguards can be designed and implemented to reduce or minimize threats to objectivity. Examples
of safeguards that can be considered by practitioners in response to identified threats are:
Internal procedures within the enterprise and audit function that ensure objective choices in
assigning engagements, (e.g., the practitioner does not audit an area over which the practitioner
previously had direct management responsibilities)
Assigning management and staff from outside the audit function, such as borrowing staff from
another function, division or external organization to supplement practitioners
Periodic rotation in IT audit assignments, reducing the practitioner’s familiarity with people in the
assigned areas
Adequate hiring practices, such as background screening and vetting, to improve the likelihood
that practitioners are free from bias or conflicts of interest (i.e., competing professional or
personal interests)
Removing an individual from an engagement should that individual’s interests or relationships
pose a threat to objectivity
Appropriate documentation and reporting requirements, ensuring that assessment of
professional independence is documented in the work papers and consistently reported in
deliverables
Assigning an independent resource—from within the audit function or other sources referenced
previously—to carry out a peer review or to act as an independent observer during planning,
fieldwork and reporting
Having an external review of the reports, communications or information produced by practitioners
by a recognized third party, e.g., accepted authority in the field or independent specialist
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2003.4.1 The audit function and practitioners should determine whether identified threats to objectivity
have been eliminated or reduced to an acceptable level. Threats to objectivity must be managed,
as a loss of objectivity could impact a professional’s ability to perform an audit or assurance
engagement without being affected by influences that compromise professional judgment, or it
could expose practitioners or the audit function to circumstances that would cause a reasonable
and informed third party to conclude that the integrity, objectivity or professional skepticism of a
member of the IT audit and assurance team had been compromised.
2003.5.1 In many enterprises, the expectation of management, IT staff and the internal audit function is
that practitioners may be involved in nonaudit services or roles such as:
Advising on IT strategies relating to areas such as technology, applications and resources
Evaluating, selecting and implementing technologies
Evaluating, selecting, customizing and implementing third-party IT applications and solutions
Designing, developing and implementing custom-built IT applications and solutions
Establishing good practices, policies and procedures relating to various IT functions
Designing, developing, testing and implementing IT security and IT controls
Advising on IT projects
2003.5.2 Providing nonaudit services or roles, in general, involves full-time or part-time participation in IT
initiatives and IT project teams to provide advisory or consultative capabilities. IT audit and
assurance practitioners may fulfill a nonaudit function through activities such as:
Full-time temporary assignment or loan of IT audit and assurance staff to an IT project team
Part-time assignment of an IT audit and assurance staff member as a member of an IT
project, such as the project steering group, project working group, evaluation team,
negotiation and contracting team, implementation team, quality assurance team or trouble-
shooting team
Acting as an advisor or reviewer of IT projects or IT controls on an ad hoc basis
2003.5.3 Providing nonaudit services or roles may create threats to professional objectivity or
independence or create the appearance of such threats if the area in which the nonaudit services
or roles were performed currently is the subject of an audit or assurance engagement or becomes
the subject of an engagement in the future. In this situation, the perception may be that both the
independence and the objectivity of practitioners were impaired by performance of the nonaudit
services or roles.
2003.5.4 Practitioners providing nonaudit services or roles should use the conceptual framework to
evaluate whether the nonaudit services or roles generate an impairment of objectivity or
independence for current or future audit or assurance engagements. This applies to engagements
in which the nonaudit services or roles are performed in an area that is significant or material to
the subject matter or stakeholders of those engagements. If necessary, practitioners should seek
guidance from IT audit and assurance colleagues and management, and/or those charged with
governance, to determine whether safeguards can be implemented to adequately mitigate any
actual or perceived threats to objectivity.
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2003.5.5 Prior to commencing nonaudit services or roles, practitioners should establish and document
their understanding with IT audit management and/or those charged with governance, as
appropriate, regarding:
The objectives of the nonaudit services or roles
The nature of the nonaudit services or roles to be performed
The audited entity’s acceptance of its responsibilities related to the nonaudit services or roles
Professional responsibilities related to the nonaudit services or roles
Any limitations of the nonaudit services or roles
Any limitations to the scope of future audit services practitioners can provide
2003.5.6 In the case of an IT audit or assurance engagement in which there is potential for impaired
objectivity or independence in attitude or appearance due to nonaudit services or roles performed,
IT audit and assurance management should implement safeguards such as:
Monitoring the conduct of the audit closely
Evaluating any significant indications of impairment of objectivity or independence arising
out of nonaudit services or roles performed, and initiating necessary safeguards
Informing those charged with governance of the potential impairment of objectivity or
independence and the safeguards implemented
2003.6.1 Activities that are routine and administrative or involve matters that are insignificant generally are
deemed not to be management responsibilities and therefore would not impair objectivity.
2003.6.2 Nonaudit services or roles that would not impair independence or objectivity if adequate
safeguards are implemented include providing routine advice on IT risk and controls.
2006.6.3 To avoid the risk of assuming a management responsibility when providing nonaudit services or
roles in an area that is (or could become) the subject of an audit or assurance engagement,
practitioners should provide the nonaudit services or roles only if satisfied that management
performs or will perform the following functions in connection with the nonaudit services or roles:
Assume all management responsibilities
Oversee the services by designating an individual, preferably within senior management, who
possesses suitable skill, knowledge or experience
Evaluate the adequacy and results of the services performed
Accept responsibility for the results of the services
Practitioners should document their consideration of management’s ability to effectively oversee
the nonaudit services or roles performed.
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2003.7.2 In addition to assuming management responsibilities, the following nonaudit services or roles
may impair independence and objectivity:
Material involvement of practitioners in the supervision or performance of designing,
developing, testing, installing, configuring or operating information systems that are material
or significant to the subject matter of the audit or assurance engagement
Designing controls for information systems that are material or significant to the subject
matter of the audit or assurance engagement
Serving in a governance role in which practitioners are independently or jointly responsible for
either making management decisions or approving policies and standards
Providing advice that forms the primary basis of management decisions or performing
management functions
2003.7.3 The following nonaudit services are considered to impair objectivity, because the threats created
would be so significant that no safeguards could reduce them to an acceptable level:
Assuming management responsibilities or performing management activities
Material involvement of practitioners in the supervision or performance of designing,
developing, testing, installing, configuring or operating information systems that are material
or significant to the subject matter of the audit or assurance engagement
Designing controls for information systems that are material or significant to the subject
matter of current or planned future audit engagements
Serving in a governance role in which the practitioners are responsible for either
independently or jointly making management decisions or approving policies and standards
Providing advice that forms the primary basis of management decisions
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2003.8.1 The IT audit charter should establish whether practitioners are permitted to perform nonaudit
services or roles, and the broad nature, timing and extent of such services or roles, to ensure that
neither objectivity nor independence is impaired with respect to the technologies practitioners
may audit. This could eliminate or minimize the need to obtain specific mandates for each
nonaudit service or role on a case-by-case basis.
2003.8.2 Practitioners should provide reasonable assurance that the terms of reference (TOR) of specific
nonaudit services or roles conform with the audit charter. Any deviations should be expressly
spelled out in the TOR and approved by IT audit and assurance management and/or those
charged with governance.
2003.8.3 If the audit charter does not specify the nonaudit services or roles, or if there is no audit charter,
practitioners should report the nature of their involvement in nonaudit services or roles to IT audit
and assurance management and those charged with governance. The timing and extent of
practitioners’ involvement in nonaudit services or roles should be subject to individual TOR signed
by management of the function in which the services or roles will be performed, and approved by
those charged with governance.
2003.9 Reporting
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COBIT 2019
Management Purpose
Objectives
MEA02 Managed Obtain transparency for key stakeholders on the adequacy of the system of internal controls and
System of Internal thus provide trust in operations, confidence in the achievement of enterprise objectives and an
Control adequate understanding of residual risk.
MEA03 Managed Ensure that the enterprise is compliant with all applicable external requirements.
Compliance With
External Requirements
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
Statement 1004.1 IT audit and assurance practitioners shall have reasonable expectation that the
engagement can be completed in accordance with applicable IT audit and assurance standards
and, where required, other industry standards or applicable laws and regulations that will result in
a professional opinion or conclusion.
1004.2 IT audit and assurance practitioners shall have reasonable expectation that the scope of
the engagement enables a conclusion on the subject matter and that any scope limitations are
addressed.
1004.3 IT audit and assurance practitioners shall have reasonable expectation that management
understands its obligations and responsibilities with respect to providing appropriate, relevant
and timely information required to perform the engagement.
2004.1 Introduction The purpose of this guideline is to assist IT audit and assurance practitioners in implementing the
principle of reasonable expectation in the execution of audit engagements. This guideline further assists IT audit and
assurance practitioners in addressing scope limitations, and provides guidance on accepting a change in engagement terms.
2004.3 Scope
2004.5 Information
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2004.3 Scope
2004.3.1 Before undertaking the audit engagement, the practitioners should determine that the scope of
the audit is clearly documented and permits a professional opinion or conclusion to be drawn on
the subject matter.
2004.3.2 The scope of the audit engagement should be clearly documented, with no room for interpretation
as to which areas (e.g., processes, activities, systems) are in the scope of the engagement. A
scope that is described too vaguely will not allow practitioners to form a professional opinion or
conclusion, because they will lack certainty that all areas in the scope have been assessed.
2004.3.3 Should practitioners determine that the scope of the audit engagement does not enable them to
express a professional opinion or conclusion, they should:
Inform IT audit and assurance management and those charged with governance of the audit
function about the scope issues identified
Propose a change in engagement terms or decline the proposed engagement
2004.4.1 Specific scope limitations may occur before or during the audit engagement. These scope
limitations can be influenced by different factors, such as:
Appropriate, relevant and timely information required to complete the audit engagement is
unavailable.
Key auditees are unavailable.
The time frame allotted is insufficient to complete the entire scope of the audit engagement.
Management tries to limit the scope of the audit engagement to selected areas.
The scope of the audit engagement is either too small or too large to come to a conclusion
on the subject matter.
The level of decentralization makes it difficult to reach a conclusion on the totality of the
subject matter.
The number of appropriately skilled practitioners available to perform the audit engagement
with its current scope is insufficient.
The reporting structure of the audit function (e.g., if the audit function does not report to the
appropriate level within the enterprise, it may be directed not to assess certain elements in
the scope).
Third-party contracts may also introduce scope limitations.
Delivery of client documentation is delayed
Remediation of existing nonconformances (identified in a prior audit or self-identified by the
auditees) is still in process.
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2004.4.2 Practitioners should consider whether scope limitations still allow for a reasonable expectation
that the audit engagement will result in a professional opinion or conclusion. Should they
determine that this condition will not be fulfilled, they should not accept the engagement.
2004.4.3 Should practitioners conclude that they still have a reasonable expectation that, despite the scope
limitations, the engagement will result in a professional opinion or conclusion, practitioners
should accept or continue the audit engagement. The scope limitations should be explicitly
described in the IT audit and assurance engagement report.
2004.4.4 Consider whether the scope is sufficient to permit an auditor’s opinion to be expressed on the
subject matter. Scope limitations may occur when information required to complete the
engagement is unavailable, when the time frame included in the IT audit or assurance
engagement is insufficient, or when management attempts to limit the scope to selected areas. In
such cases, other types of engagements may be considered, such reviews of controls;
compliance with required standards and practices; or compliance with agreements, licenses,
legislation and regulation.
2004.5 Information
2004.5.1 The audit charter will determine the right of access to information, systems, personnel and
locations relevant to the performance of the audit engagement.
2004.5.2 Before undertaking the audit engagement, practitioners should identify and address any
restrictions placed on their right of access to appropriate, relevant and timely information for the
audit engagement. Practitioners should have a reasonable expectation that their right of access
for the audit engagement is in accordance with the stipulations in the audit charter, or that
potential deviations from the stipulations do not preclude the practitioners from reaching a
professional opinion or conclusion on the subject matter.
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2004.5.3 Should practitioners conclude that their right of access to information does not enable them to
express a professional opinion or conclusion, they should:
Inform IT audit and assurance management and those charged with governance of the audit
function of the identified issues concerning their right to access appropriate, relevant and
timely information.
Propose a change in engagement terms or not accept the proposed audit engagement.
2004.5.4 Performing an audit or assurance engagement could involve assessing activities performed by
executive management. That possibility should be assessed prior to execution of the audit
engagement. Practitioners should assess whether their need to access such individuals or related
information will be challenged. Mitigating actions that might be required before the execution of
the audit engagement include but are not limited to:
Audit charter provisions assigning appropriate authority to the audit function and
professionals
Explicit written support from those charged with governance, e.g., board of directors and
audit committee
Attendance by a member of the board or executive management when access to executive or
senior management is required
2004.6.1 Practitioners should not accept a change in terms of the audit engagement if, based on their
professional judgment, there is no justification for doing so.
2004.6.2 If, during the course of the audit engagement, practitioners are requested to accept a change in
terms that lowers the level of assurance, they should determine whether there is justification for
doing so, based on their professional judgment.
2004.6.3 If the terms of an audit engagement are changed, they should be recorded and formally approved
by both practitioners and IT audit and assurance management. The IT audit and assurance
engagement report should mention this change in terms explicitly.
2004.6.4 If practitioners do not accept a change in terms of the audit engagement and management does
not permit them to continue the original audit engagement, in consultation with audit and
assurance management, practitioners should:
Withdraw from the audit engagement.
Determine, according to their professional judgment, whether to report the circumstances to
those charged with governance, e.g., the board of directors or even regulators.
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COBIT 2019
Management Purpose
Objectives
MEA03 Managed Ensure that the enterprise is compliant with all applicable external requirements.
Compliance With
External Requirements
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
Statement 1005.1 In accordance with ISACA’s Code of Professional Ethics, auditors will exercise due
diligence and professional care. They will maintain high standards of conduct and character, and
they will refrain from engaging in acts that may discredit themselves or the profession. Privacy
and confidentiality of information obtained during the course of the auditor’s duties should be
maintained. Further, this information should not be used for personal benefit, nor should the
information be disclosed unless required by legal authority.
2005.1 The purpose of this guideline is to clarify the term “due professional care” as it applies to planning, performing and
reporting on an audit engagement with integrity and care in compliance with the ISACA Code of Professional Ethics. Note
that due professional care implies reasonable care and competence, not infallibility or extraordinary performance.
2005.3 Application
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2005.5 Communication
2005.2.1 Due professional care applies to the exercise of professional judgment in the conduct of work
performed. Due professional care implies that practitioners should approach matters requiring
professional judgment with professional skepticism, diligence, integrity and care. They should
maintain this attitude throughout the whole engagement.
2005.2.2 Practitioners should maintain competence, objectivity and independence, both in mind and
appearance, in all matters related to the conduct of the audit engagement. They should be honest,
impartial and unbiased in addressing issues and reaching conclusions.
2005.2.3 Exercising due professional care requires that practitioners consider the possible existence of
inefficiencies, misuses, errors, scope limitations, incompetence, conflicts of interest or fraud. It
should also make practitioners attentive to specific conditions or activities where these issues
can occur.
2005.2.4 Practitioners should keep informed of and comply with developments in professional standards
to demonstrate understanding and professional competence sufficient to achieve the IT audit and
assurance objectives.
2005.2.5 Practitioners should conduct the audit engagement with diligence while adhering to professional
standards and statutory and regulatory requirements.
2005.3 Application
2005.3.1 Due professional care should extend to every aspect of the audit, including but not limited to
evaluating audit risk, accepting audit assignments, establishing audit scope, formulating audit
objectives, planning the audit, conducting the audit, allocating resources to the audit, selecting
audit tests, evaluating test results, documenting the audit, arriving at audit conclusions, reporting
and delivering audit results, and conducting follow-up activities. In doing this, practitioners should
determine or evaluate the following:
Type, level, skill and competence of resources required to meet IT audit and assurance
standards
Significance of identified risk and the potential effect of such risk on the subject of the audit
Sufficiency, validity and relevance of audit evidence gathered
Competence, integrity and conclusions of others upon whose work practitioners place
reliance
2005.3.2 Due professional care also requires practitioners to conduct all engagements with the concept of
reasonable assurance in mind.
2005.3.3 Practitioners should serve the interests of stakeholders in a lawful and honest manner, while
maintaining high standards of conduct and character, and should not engage in acts discreditable
to the profession.
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2005.4.1 Practitioners should plan the audit engagement completely and in a timely manner by exercising
due professional care to ensure the availability of the appropriate resources and a timely
completion of the audit engagement. Practitioners assigned to the project should collectively
possess the needed skills, knowledge and relevant competencies to perform the audit
engagement.
2005.4.2 Practitioners should conduct the audit engagement by applying due professional care, i.e., by
following the appropriate professional standards to ensure a quality and complete audit
conclusion or opinion.
2005.4.3 Practitioners should exercise due professional care in determining that management’s corrective
actions effectively address findings from the audit.
2005.5 Communication
2005.5.1 The defined roles and responsibilities should be communicated to the team members before the
start of the project to ensure the team’s adherence to the appropriate professional standards
during the audit engagement.
2005.5.2 During the audit engagement, practitioners should appropriately communicate with auditees and
relevant stakeholders to ensure their cooperation.
2005.5.3 Practitioners should address their findings to auditees of the audit engagement.
2005.5.4 Practitioners should document and communicate to appropriate parties any concerns regarding
the application of professional standards in order to resolve those concerns.
2005.5.5 Practitioners should exercise due professional care while informing appropriate parties of the
results of work performed.
2005.6.1 Practitioners should have a reasonable expectation that management understands its obligations
and responsibilities to provide appropriate, relevant and timely information required for the
performance of the audit engagement.
2005.6.2 Practitioners should take reasonable measures to maintain the privacy and confidentiality of
information obtained in the course of their duties unless disclosure is required by a legal
authority. Such information must not be used for personal benefit or released to inappropriate
parties.
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2005.6.3 Information should be obtained, used, retained and properly disposed of in accordance with
organizational policies and relevant laws, rules and regulations.
COBIT 2019
Governance and
Purpose
Management
Objectives
EDM01 Ensured Provide a consistent approach integrated and aligned with the enterprise governance approach.
Governance I&T-related decisions are made in line with the enterprise’s strategies and objectives and desired
Framework Setting and value is realized. To that end, ensure that I&T-related processes are overseen effectively and
Maintenance transparently; compliance with legal, contractual and regulatory requirements is confirmed; and
the governance requirements for board members are met.
MEA03 Managed Ensure that the enterprise is compliant with all applicable external requirements.
Compliance With
External Requirements
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
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Statements 1006.1 IT audit and assurance practitioners, collectively with others assisting with the audit and
assurance engagement, shall possess the professional competence to perform the work required.
1006.2 IT audit and assurance practitioners shall possess adequate knowledge of the subject
matter to perform their roles in IT audit and assurance engagements.
1006.3 IT audit and assurance practitioners shall maintain professional competence through
appropriate continuing professional education and training.
2006.1 Introduction This guideline assists IT audit and assurance practitioners to acquire the necessary skills and
knowledge and maintain professional competencies while carrying out audit engagements. The guideline content section is
structured to provide information on the following key IT audit and assurance engagement topics:
2006.3 Evaluation
2006.2.1 Professional competence denotes possession of skills, knowledge and expertise, through an
adequate level of education and experience, to appropriately perform an audit engagement.
2006.2.2 IT audit and assurance management should communicate the desired and/or expected level of
professional competence, based on appropriate benchmarks, for the different roles in audit
engagements, and ensure such benchmarks are periodically reviewed and updated. IT audit and
assurance management should document the professional competence required for various job
levels, e.g., by documenting job/position descriptions or by formulating a skills matrix that
indicates the professional competence required for the various job levels.
2006.2.3 IT audit and assurance management should provide reasonable assurance of the availability of
competent resources required to carry out the audit engagements defined in the IT audit plan. The
availability of such competent resources should be confirmed and ensured prior to
commencement of the audit engagement.
2006.2.4 IT audit and assurance management should ensure that team members are competent to
perform the audit engagement. Identification of core professional competencies of team
members will assist in efficient utilization of available resources.
2006.2.5 Practitioners should provide reasonable assurance that they possess the required level of
professional competence. They should acquire the professional and technical skills and
knowledge required to carry out any assignment they agree to perform.
2006.2.6 Practitioners’ required skills and knowledge vary with their positions and roles in the audit
engagement. Requirements for management skills and knowledge should be commensurate with
levels of responsibility.
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2006.2.7 Skills and knowledge include proficiency in the identification and assessment of risk and controls, as
well as in the application and use of audit tools and techniques. Practitioners should possess
analytical and technical knowledge together with interviewing, interpersonal and presentation skills.
2006.2.8 Practitioners should possess the knowledge to identify and determine the impact of possible
conditions or deviations material to the audit engagement, and to communicate them appropriately.
2006.2.9 Practitioners should possess the ability to recognize possible fraud indicators.
2006.2.10 In addition to information technology knowledge, practitioners should have a general knowledge
of business fundamentals, e.g., economics, finance, accounting, risk, tax and law, to prevent them
from overlooking potential issues or shortcomings.
2006.2.11 It is appropriate for practitioners to share their experiences, adopted good practices, lessons
learned and knowledge gained with team members to improve their professional competencies.
The professional competencies of team members are improved through team building sessions,
workshops, conferences, seminars, lectures and other modes of interaction.
2006.2.12 To ensure availability of appropriate skills, alternative means of acquiring them should be
assessed, e.g., subcontracting specific resources, outsourcing a portion of the IT audit and
assurance tasks, and/or delaying the audit engagement until the required skills are available.
2006.2.13 External expertise can be obtained by outsourcing part or all of the engagement. Collaboration
between outsourced resources and internal practitioners ensures that knowledge and skills are
developed and maintained internally.
2006.2.14 If any part of the audit engagement is outsourced or expert assistance is obtained, reasonable
assurance must be provided that the outsourced agency or the external expert possesses the
requisite professional competence.
2006.2.15 If expert assistance is obtained on a continual basis, professional competence of such external
experts should be periodically measured, monitored and reviewed against professional standards
or benchmarks.
2006.3 Evaluation
2006.3.1 Practitioners should monitor their skills and knowledge continually to maintain the appropriate
level of professional competence. IT audit and assurance management should periodically
evaluate professional competence.
2006.3.2 Evaluation of the performance of practitioners should be carried out in a manner that is fair,
transparent, easily understood, unambiguous, without bias and considered a generally acceptable
practice given the employment environment.
2006.3.3 Evaluation criteria and procedures should be clearly defined but may vary depending upon
circumstances such as geographic location, political climate, nature of assignment, culture and
other similar circumstances.
2006.3.4 In the case of a team of practitioners, evaluation should be carried out internally among teams or
individuals on a cross-functional basis.
2006.3.5 In the case of a single (sole) independent practitioner, peer evaluations should be carried out to
the extent possible. If a peer review is not possible, self-evaluation should be conducted and
documented.
2006.3.6 Evaluation of the performance of practitioners should be conducted by an appropriate level of
management.
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2006.4.1 Gaps noted based upon variance in the actual level of professional competence and the expected
level of professional competence should be recorded and analyzed. If a significant deficiency
exists in any resource, that resource should not be used in conducting an audit engagement.
2006.4.2 It is important to ascertain the cause for the gap and to take appropriate corrective measures,
e.g., training and continuing professional education (CPE), as soon as possible.
2006.4.3 Training activities required for an audit engagement should be completed within a reasonable
time and before commencement of the audit activity.
2006.4.4 Effectiveness of training should be measured upon completion of training.
2006.4.5 Documentation of the required skills, e.g., a skills matrix, as formulated by IT audit and assurance
management, will aid in identifying gaps and training needs. A matrix can be cross-referenced to
available resources and their skills and knowledge.
2006.4.6 Records of training provided, together with feedback on training and effectiveness of training,
should be maintained, analyzed and referenced for future use.
2006.4.7 CPE is a methodology adopted by ISACA to maintain professional competence and update skills
and knowledge.
2006.4.8 CPE programs should aid in the enhancement of skills and knowledge related to professional and
technical requirements of IT audit, risk, security, privacy and governance. Professional bodies
ordinarily specify programs eligible for CPE recognition. Practitioners should adhere to the norms
prescribed by their respective professional bodies.
2006.4.9 Professional bodies ordinarily prescribe the methodology of attaining CPE credits and the minimum
credits that their constituents should periodically obtain. Practitioners must adhere to the norms
prescribed by their respective professional bodies. If practitioners are associated with more than one
professional body for the purpose of attaining minimum credits, they may use their professional
judgment to attain CPE credits in a common manner from the eligible programs, provided the same is
consistent with the rules/guidelines framed by the respective professional bodies.
2006.4.10 ISACA has a comprehensive policy on CPE, applicable to its members and holders of the CISA
designation. Practitioners with the CISA designation must comply with ISACA’s CPE policy. Details
of the policy are available at www.isaca.org/credentialing/cisa/maintain-cisa-certification.
2006.4.11 As prescribed by respective professional bodies, including ISACA, practitioners are required to
maintain appropriate records of CPE programs, retain them for specific periods and, if required,
make them available for audit.
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COBIT 2019
Governance and
Purpose
Management
Objectives
EDM04 Ensured Ensure that the resource needs of the enterprise are met in the optimal manner, I&T costs are
Resource Optimization optimized, and there is an increased likelihood of benefit realization and readiness for future
change.
APO07 Managed Optimize human resources capabilities to meet enterprise objectives.
Human Resources
Statement 1007.1 IT audit and assurance practitioners shall review the assertions against which the subject
matter will be assessed to determine that such assertions are capable of being audited and that
the assertions are sufficient, valid and relevant.
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2007.1 Introduction The purpose of this guideline is to detail the different assertions, guide IT audit and assurance
practitioners in assuring that the criteria against which the subject matter is to be assessed support the assertions, and
provide guidance on formulating a conclusion and drafting a report on the assertions. The guideline section is structured to
provide information on the following key audit and assurance topics:
2007.2 Assertions
2007.2 Assertions
2007.2.1 Assertions are any declarations or sets of declarations about whether the subject matter is based on
or in conformity with the criteria selected. Practitioners should consider these assertions throughout
the execution of an audit engagement, obtain assurance on their achievement and address them in
the audit report.
2007.2.2 Common assertions that may be considered include:
Confidentiality—Preserving authorized restrictions on access and disclosure, including means for
protecting privacy and proprietary information.
Completeness—All activities, information and other data that should have been recorded are
recorded, e.g., all IT system changes promoted to production are recorded in the change
management tracking application.
Accuracy—Amounts, dates and other data related to recorded activities have been recorded
appropriately, e.g., data related to the promotion of IT system changes into production are
accurately displayed in the change records of the change management tracking application.
Integrity—Information, evidence and other data received come from trustworthy and reliable
sources and are protected throughout their life cycles, e.g., comparing the hash after a backup is
completed with the hash immediately before a backup is restored to check for indications of
tampering.
Availability—Information, evidence and other data required for the audit engagement exist and
are accessible, e.g., the requested change records exist and are readily accessible in the change
management tracking application.
Compliance—Information, evidence and other data are recorded according to the enterprise,
regulatory or other applicable stipulations, e.g., required fields, according to the applicable
stipulations, are present on the change records of the change management tracking application.
Efficiency—Level of performance used allows the lowest number of inputs to create the greatest
number of outputs.
Effectiveness—The desired output or objective is produced.
2007.2.3 Management is responsible for defining and approving subject matter and related assertions.
Practitioners should ensure that any assertions developed by management are what a knowledgeable
reader or user would expect compared to other standards of authoritative pronouncements.
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2007.2.4 A precondition for practitioners to accept the audit engagement should be confirmation from
management that it fully understands its responsibility to provide all required information regarding
the subject matter and the assertions to practitioners. If practitioners believe that management will
not be able to fulfill this responsibility, they should:
Inform IT audit and assurance management and those charged with governance of the audit
function of the identified issue.
Not accept the proposed audit engagement or determine an appropriate course of action based
on the level of risk associated with the engagement.
2007.2.5 Practitioners should review the selected assertions for the audit engagement and ensure that they
are:
Sufficient—Enough to meet the purpose of the audit engagement, which is to express an opinion
or conclusion on the subject matter in scope
Valid—Able to be tested, given the subject matter in scope
Relevant—Directly connected to the subject matter in scope and useful to meeting the purpose of
the audit engagement
2007.3.1 Practitioners should assess the subject matter of the audit engagement against predetermined
criteria to express an opinion or conclusion on the subject matter. Practitioners should evaluate
the criteria to ensure that they support the relevant assertions.
2007.3.2 One criterion can link to multiple assertions. Also, one assertion can be supported by multiple
criteria. All may contribute to assurance in attaining the assertion.
2007.3.3 If practitioners conclude that the criteria do not fully support all the relevant assertions, they
should recommend changes or additions to the existing criteria. IT audit and assurance
management must review and approve or reject the new or modified criteria.
2007.3.4 After assessing that the criteria fully support the relevant assertions, practitioners should assess
whether the criteria can be subject to objective and measurable analysis.
2007.4.1 Enterprises outsourcing operations to third parties will receive reports about the control
environment of the outsourced operations. If IT audit and assurance relies on reports related to
outsourced operations to support an audit engagement, then practitioners should review each
report to determine whether:
The report is issued by a relevant independent professional body.
The audit opinion is qualified or unqualified.
The scope of the control objectives adequately covers the controls required by the enterprise.
The period being audited is in line with enterprise expectations.
Specific control deficiencies (that did not lead to an overall qualification of the report) are
relevant to the enterprise.
The assertions being used are in line with the required assertions. IT audit and assurance
management should document the analysis made and conclusions reached. Practitioners
should ensure that the assertions are verified and formally approved by management, as part
of an audit engagement that has the outsourced operations in scope.
2007.4.2 Enterprises may also receive reports from third parties such as consultants or external auditors.
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2007.5.1 After assessing the subject matter of the audit engagement against the criteria, practitioners
should form a conclusion on each assertion, based on the aggregate of the findings against
related criteria, along with professional judgment.
2007.5.2 After forming a conclusion, practitioners should issue an indirect or direct report on the subject
matter:
Indirect report—On the assertions about the subject matter, e.g., on the assertion
“completeness,” for a component of the subject matter: “Based on our operating
effectiveness testing, in our opinion the IT system changes promoted to production, in all
material respects according to the selected criteria, have been completely recorded in the
change management tracking application.”
Direct report—On the subject matter itself, e.g., on the entire subject matter: “Based on our
testing, in our opinion the IT system changes are following, in all material respects according
to the selected criteria, the required change management procedure.”
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COBIT 2019
Governance and
Purpose
Management
Objectives
EDM01 Ensured Provide a consistent approach integrated and aligned with the enterprise governance approach.
Governance I&T-related decisions are made in line with the enterprise’s strategies and objectives and desired
Framework Setting and value is realized. To that end, ensure that I&T-related processes are overseen effectively and
Maintenance transparently; compliance with legal, contractual and regulatory requirements is confirmed; and
the governance requirements for board members are met.
EDM02 Ensured Secure optimal value from I&T-enabled initiatives, services and assets; cost-efficient delivery of
Benefits Delivery solutions and services; and a reliable and accurate picture of costs and likely benefits so that
business needs are supported effectively and efficiently.
EDM03 Ensured Risk Ensure that I&T-related enterprise risk does not exceed the enterprise’s risk appetite and risk
Optimization tolerance, the impact of I&T risk to enterprise value is identified and managed, and the potential
for compliance failures is minimized.
EDM04 Ensured Ensure that the resource needs of the enterprise are met in the optimal manner, I&T costs are
Resource Optimization optimized, and there is an increased likelihood of benefit realization and readiness for future
change.
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
Statements 1008.1 IT audit and assurance practitioners shall select criteria, against which the subject matter
will be assessed, that are objective, complete, relevant, reliable, measurable, understandable,
widely recognized, authoritative and understood by, or available to, all readers and users of the
report.
1008.2 IT audit and assurance practitioners shall consider the acceptability of the criteria and
focus on criteria that are recognized, authoritative and publicly available.
2008.1 Introduction The purpose of this guideline is to assist IT audit and assurance practitioners in selecting criteria,
against which the subject matter will be assessed, that are suitable, acceptable, and come from a relevant source. The
guideline content section is structured to provide information on the following key audit and assurance engagement topics:
2008.3 Suitability
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2008.4 Acceptability
2008.5 Source
2008.2.1 Practitioners shall select criteria against which the subject matter will be assessed. When
selecting the criteria, practitioners shall carefully consider the suitability, acceptability and source
of the criteria.
2008.2.2 Practitioners should consider the selection of criteria carefully. Adhering to local laws and
regulations is important and should be considered a mandatory requirement. However, it is
recognized that many audit engagements include areas, such as change management, IT general
controls and access controls, not covered by law or regulations. In addition, some industries, such
as the payment card industry, have established mandatory requirements. The relevance of local
and international data protection rules and privacy and security regulations should be considered.
If legislative requirements are not prescriptive, practitioners should ensure that criteria selected
meet the audit objectives to ensure compliance with the legislation.
2008.2.3 The use of suitable and acceptable criteria is required to ensure a consistent evaluation of the
subject matter. Otherwise, any conclusion or opinion formed will be open to misunderstanding
and misinterpretation by the reader.
2008.2.4 Practitioners should refrain from evaluating the subject matter on the basis of personal
expectations, experiences or judgments.
2008.2.5 If criteria are not readily available, or if they are incomplete or subject to interpretation,
practitioners should include a description of the criteria and any other information necessary to
ensure that the report is fair, objective and understandable.
2008.2.6 Professional judgment should be used in ensuring that use of the criteria will enable the
development of a fair and objective opinion or conclusion that will not mislead the reader or user.
It is recognized that management might put forth criteria that do not meet all the requirements.
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2008.3 Suitability
2008.3.1 Practitioners should assess the suitability and appropriateness of the criteria used for assessing
subject matter. The sample criterion “Local law stipulates that all personal information of clients
should always remain private when conducting data transactions” is used to clarify the following
criteria attributes:
Objectivity—Free from bias that may adversely impact practitioners’ findings and conclusions
and thus may mislead the user of the audit report, e.g., the criterion is objective because it
was ratified by local law.
Completeness—Sufficiently complete so that all criteria that could affect practitioners’
conclusions about the subject matter are identified and used in the conduct of the audit
engagement. Thus, completeness of all criteria used should be achieved, given the objectives
of the audit engagement.
Relevance—Relevant to the subject matter and contributes to findings and conclusions that
meet the objectives of the audit engagement. Criteria can be context-sensitive; even for the
same subject matter, there can be different criteria, depending on the objectives and
circumstances of the audit engagement, e.g., the criterion is considered relevant because
data transactions are in the scope of the audit engagement.
Reliability—Criteria should allow reasonably consistent measurement or evaluation of the
underlying subject matter and the development of consistent conclusions when applied by
different practitioners in similar circumstances.
Measurability—Permits consistent measurement of the subject matter and the development
of consistent conclusions when applied by different practitioners in similar circumstances,
e.g., the criterion is measurable because every data transaction with unprotected personal
information can be uniquely identified and thus consistently measured.
Understandability—Communicated clearly and not subject to significantly different
interpretations by intended users, e.g., the criterion is understandable because this section of
the law has already been the subject of multiple court rulings, helping to establish a clear
understanding about the practical execution and interpretation of the law.
2008.4 Acceptability
2008.4.1 The acceptability of criteria is affected by the availability of the criteria to the users of the audit report,
so that they understand the basis of the assurance activity and the relevance of the findings and
conclusions.
Acceptable criteria include those that are:
Recognized—Sufficiently well recognized so that their use is not questioned by intended users.
Authoritative—Reflect authoritative pronouncements within the area and are appropriate for the
subject matter, e.g., authoritative pronouncements may come from professional bodies, industry
groups, government and regulators.
Publicly available—Includes standards developed by professional accounting and audit bodies
such as ISACA, International Federation of Accountants (IFAC), and other recognized government,
legal or professional bodies.
Available to all users—Where not publicly available, criteria should be communicated to all users
through assertions that form part of the audit report. Assertions consist of statements about the
subject matter that meet the requirements of “suitable criteria” so they can be audited.
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2008.4.2 Practitioners should ensure that the criteria used in an audit engagement are either:
Externally accepted—Recognized, authoritative and publicly available; or
Externally confirmed—Criteria developed by management for a specific audit engagement
are not considered recognized, authoritative and publicly available. Before use, such criteria
require external validation by a recognized independent third party to ensure that
management does not implicitly compel a desired outcome of the audit engagement.
2008.5 Source
2008.5.1 In addition to considering the suitability and availability of IT assurance criteria, practitioners should
consider the criteria’s source, in terms of use and potential audience. For example, if the subject
matter involves government regulations, criteria based on assertions developed from the legislation
and regulations that apply to the subject matter may be most appropriate. In other cases, industry or
trade association criteria may be relevant. Possible criteria sources, listed in order of consideration,
include:
Criteria established by ISACA—These are publicly available criteria and standards that have been
exposed to peer review and a thorough due-diligence process by recognized international experts
in IT audit, risk, privacy, governance and security.
Criteria established by other bodies of experts—Similar to ISACA standards and criteria, these
are relevant to the subject matter and have been developed and exposed to peer review and a
thorough due-diligence process by experts in various fields.
Criteria established by laws and regulations—While laws and regulations can provide the basis of
criteria, care must be taken in their use. Wording is often complex and carries a specific legal
meaning. In many cases, it may be necessary to restate requirements as assertions. Further,
expressing an opinion on legislation is usually restricted to members of the legal profession.
Criteria established by entities that did not follow due process—These include relevant criteria
developed by entities that did not follow due process and thus have not been subject to public
consultation and debate.
Criteria developed specifically for the audit engagement—While criteria developed specifically
for the audit engagement may be appropriate, practitioners should take particular care to ensure
that the criteria are suitable—especially objective, complete and measurable. Criteria developed
specifically for an audit engagement are in the form of assertions. They usually pertain to the
needs of a specific user. For example, various frameworks can be used as established criteria for
evaluating the effectiveness of the internal control system. However, a certain user may develop a
set of criteria that meets a specific need, e.g., a hierarchy of authorized approvals. Practitioners
should clearly mention in the audit report that certain criteria are specific to the audit
engagement. They should consider whether the developed criteria could mislead the intended
user, and provide more information on the criteria if required. If management developed the
criteria, external confirmation should be sought and mentioned in the report.
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2008.6.1 As the audit progresses, additional information and insights on the subject matter may result in a
change of selected criteria:
Certain criteria may no longer be needed to achieve the audit objective, rendering further
audit work related to the criteria unnecessary.
If extra criteria are needed to achieve the audit objective, practitioners will select the criteria
and conduct related audit work.
COBIT 2019
Governance and
Purpose
Management
Objectives
EDM01 Ensured Provide a consistent approach integrated and aligned with the enterprise governance approach.
Governance I&T-related decisions are made in line with the enterprise’s strategies and objectives and desired
Framework Setting and value is realized. To that end, ensure that I&T-related processes are overseen effectively and
Maintenance transparently; compliance with legal, contractual and regulatory requirements is confirmed; and
the governance requirements for board members are met.
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
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PERFORMANCE STANDARDS
Statements 1201.1 The IT audit and assurance function shall use an appropriate risk assessment approach
(i.e., data-driven with both quantitative and qualitative factors) and supporting methodology to
develop the overall IT audit plan and determine priorities for the effective allocation of IT audit
resources.
1201.2 IT audit and assurance practitioners shall identify and assess risk relevant to the area
under review when planning individual engagements.
1201.3 IT audit and assurance practitioners shall consider subject matter risk, audit risk and
related exposure to the enterprise when planning audit engagements.
2201.1 Introduction The purpose of this guideline is to assist in identification of risk and threats in the IT
environment. The guideline provides guidance in applying a risk assessment approach to develop an:
IT audit plan that covers all annual audit engagements
Audit engagement project plan that focuses on one specific audit engagement
The guideline provides details of the different types of risk the IT audit and assurance practitioners encounter. The
guideline content section is structured to provide information on the following key audit and assurance engagement
topics:
2201.2.1 A risk assessment should be conducted during the audit planning process and proactively
modified based on changing business conditions and emerging risk. Practitioners should
consider the organizational strategic plans and objectives and the enterprise risk management
framework and initiatives. This will facilitate the development process of the IT audit schedule.
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2201.2.2 To correctly and completely assess the risk that is related to the complete scope of the IT audit
area, practitioners should consider the following elements when developing the IT audit schedule:
Full coverage of all areas within the scope of the IT audit universe, which encompasses the
range of all possible audit activities and considers the criticality of systems, applications and
processes
Reliability and suitability of the risk assessment provided by management
Management’s processes for supervising, examining and reporting possible risk or issues
Cover risk in related activities relevant to the activities under review
2201.2.3 The applied risk assessment approach should help with the prioritization and scheduling process
of the IT audit and assurance work. It should support the selection of areas and items of audit
interest. It should guide the decision process for designing and conducting particular IT audit
engagements.
2201.2.4 Practitioners should ensure that the applied risk assessment approach is approved by those
charged with governance, and distributed to the various engagement stakeholders.
2201.2.5 Practitioners should use risk assessments to quantify and justify the amount of IT audit resources
needed to complete the IT audit plan and to meet the requirements for specific engagements.
2201.2.6 Based on risk assessment, practitioners should develop an IT audit schedule that acts as a
framework for the IT audit and assurance activities. It should:
Consider non-IT audit and assurance requirements and activities
Be updated at least annually
Be approved by those charged with governance
Address responsibilities set by the audit charter
2201.2.7 When developing the overall IT audit plan, a suitable risk assessment approach should be
followed. The goal of risk assessment is to identify the parts of an activity that should receive
more audit focus and to reduce the risk of reaching an incorrect conclusion.
2201.3.1 Practitioners should consider the appropriate risk assessment methodology to ensure complete
and accurate coverage of the audit engagements in the IT audit schedule.
2201.3.2 Practitioners should at least include within the methodology an analysis of the risk to the
enterprise related to system availability, data integrity and business information confidentiality.
2201.3.3 Many risk assessment methodologies are available to support the risk assessment process.
These range from simple classifications of high, medium and low, based on practitioners’
judgment, to more quantitative and scientific calculations that provide a numeric risk rating. There
are other methodologies that are a combination of the two. Practitioners should consider the level
of complexity and detail appropriate for the enterprise or subject(s) being audited. Specific
guidance on performing risk assessments can be found in the ISACA publications, Risk IT
Framework and Risk IT Practitioner Guide.
2201.3.4 All risk assessment methodologies rely on subjective judgments at some point in the process
(e.g., for assigning weights to the various parameters). Practitioners should identify the subjective
decisions required to use a particular methodology and consider whether judgments can be made
and validated to an appropriate level of accuracy and reasonableness.
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2201.3.5 To determine the most appropriate risk assessment methodology, practitioners should consider:
Type of information required to be collected. Some systems use financial effects as the only
measure, which is not always appropriate for IT audit engagements.
Cost of software or other licenses required to use the methodology
Extent to which the information required is already available
Amount of additional information required to be collected before reliable output can be
obtained, and the cost of collecting the information (including the required time investment in
the collection exercise)
Opinions of other users of the methodology, and their views of how well it has assisted them
in improving the efficiency and/or effectiveness of their audits
Willingness of those charged with governance of the IT audit area to accept the methodology
as the means of determining the type and level of audit work carried out
2201.3.6 No single risk assessment methodology can be expected to be appropriate for all situations.
Practitioners should periodically reevaluate the appropriateness of the chosen risk assessment
methodology because risk, threats, vulnerabilities, risk appetite and risk tolerance may change.
2201.3.7 Practitioners should use the selected risk assessment techniques in developing the overall IT
audit schedule and in planning specific audit engagements. Risk assessment, in combination with
other audit techniques, should be considered in planning decisions, such as:
Areas or business functions to be audited
Amount of time and resources to be allocated to an audit
Nature, extent and timing of audit procedures
2201.3.8 The risk assessment methodologies adopted should produce consistent, valid, comparable and
repeatable results and should be agreed upon by management. Risk assessments produced by
the methodology should be consistent (over a period), valid, comparable (with earlier/later
assessments using the same assessment methodology) and repeatable (given a similar set of
facts, using the same assessment methodology will produce a similar outcome).
2201.4.1 When planning an individual engagement, practitioners should identify and assess risk relevant to
the area under review. The risk assessment results should be reflected in the audit engagement
objectives. During the risk assessment, practitioners should consider:
Results of prior audit engagements, reviews and findings, including any remedial activities
The enterprise risk assessment process
The likelihood of occurrence of a particular risk
The impact of a particular risk (in monetary or other value measures) if it occurs
2201.4.2 Practitioners should ensure full understanding of the activities in scope before assessing risk.
They should request comments and suggestions from stakeholders and other appropriate
parties. Full understanding is required to correctly determine possible risk in the audit
engagement and examine the related impact.
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2201.4.3 When planning a specific IT audit and assurance procedure, practitioners should recognize that
the lower the materiality threshold is, the more precise the audit expectations will be, and the
greater the audit risk.
2201.4.4 When planning a specific IT audit and assurance procedure, practitioners should consider
possible illegal acts that might require a modification of the nature, timing or extent of the existing
procedures and corresponding documentation necessary to support potential litigation.
2201.4.5 To gain additional assurance in instances of high audit risk or lower materiality threshold,
practitioners should compensate either by extending the scope or nature of the IT audit tests or
by increasing or extending the substantive testing.
2201.5.1 Audit risk refers to the risk of reaching an incorrect conclusion based upon audit findings.
The three components of audit risk are:
Inherent risk
Control risk
Detection risk
2201.5.2 Practitioners should consider each of the risk components to determine the overall level of risk.
Audit risk is comprised of subject matter risk, which includes inherent risk and control risk, and
detection risk.
2201.6.1 Inherent risk is the susceptibility of an audit area to an error that could be material (individually or
in combination with other errors), assuming that there were no related internal controls. For
example, the inherent risk associated with operating systems without appropriate controls is
ordinarily high, since changes to, or even disclosure of, data or programs through operating
system security weaknesses could result in false management information or competitive
disadvantage. By contrast, the inherent risk associated with security for a stand-alone PC without
controls, when a proper analysis demonstrates it is not used for business-critical purposes,
ordinarily is low.
2201.6.2 Since the IT auditor considers the scope of areas to be tested that affect major business systems,
inherent risk is expected to be high.
2201.7.1 Control risk is the risk that an error that could occur in an audit area and that could be material,
individually or in combination with other errors, will not be prevented or detected and corrected in
a timely basis by the internal control system. For example, the control risk associated with manual
reviews of computer logs can be high because a large volume of logged information can result in
inadvertent failure to identify an anomaly resulting from human error. The control risk associated
with computerized data validation procedures ordinarily is low because the processes are applied
consistently.
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2201.7.2 Practitioners should assess the control risk as high unless relevant internal controls are:
Identified
Validated via testing (i.e., comparison of performance to design) and proved to be operating
effectively
2201.7.4 Practitioners should consider the risk that limitations and shortcomings in detailed IT controls
may result from inadequacies in the pervasive IT controls.
2201.8.1 Detection risk is the risk that practitioners’ substantive procedures will not detect an error that
could be material, individually or in combination with other errors. For example, the detection risk
associated with identifying security breaches in an application system is often high, because logs
for the whole period of the audit may not be available at the time of the audit. The detection risk
associated with identifying the lack of disaster recovery plans tends to be low, since their
existence is easily verified.
2201.8.2 In determining the level of substantive testing required, practitioners should consider:
Assessment of inherent risk
Conclusions on control risk following compliance testing
2201.8.3 The higher the assessment of inherent and control risk, the more audit evidence practitioners
normally should obtain from the performance of substantive audit procedures.
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COBIT 2019
Governance and
Purpose
Management
Objectives
EDM01 Ensured Provide a consistent approach integrated and aligned with the enterprise governance approach.
Governance I&T-related decisions are made in line with the enterprise’s strategies and objectives and desired
Framework Setting and value is realized. To that end, ensure that I&T-related processes are overseen effectively and
Maintenance transparently; compliance with legal, contractual and regulatory requirements is confirmed; and
the governance requirements for board members are met.
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EDM03 Ensured Risk Ensure that I&T-related enterprise risk does not exceed the enterprise’s risk appetite and risk
Optimization tolerance, the impact of I&T risk to enterprise value is identified and managed, and the potential
for compliance failures is minimized.
APO12 Managed Risk Integrate the management of I&T-related enterprise risk with overall enterprise risk management
(ERM) and balance the costs and benefits of managing I&T-related enterprise risk.
MEA03 Managed Ensure that the enterprise is compliant with all applicable external requirements.
Compliance With
External Requirements
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
1202.2 Both short-term and long-term audit schedules should be agreed upon with those charged
with governance and oversight (e.g., audit committee) and communicated within the enterprise.
1202.3 The IT audit and assurance function shall modify its short-term and/or long-term audit
schedules to be responsive to organizational needs (i.e., unexpected events or unplanned
initiatives). Any audit displaced to accommodate an audit of an unexpected event or unplanned
initiative should be reassigned to a future period.
2202.1 Introduction This guideline provides guidance in audit scheduling for IT audit and assurance practitioners.
The guideline content section is structured to provide information on the key audit and assurance engagement topics:
2202.2.1 IT audit and assurance practitioners shall develop and maintain an audit schedule that is based
on an inventory of audit areas, often referred to as the audit universe. Audit scheduling helps to
ensure that appropriate attention is devoted to the audit function’s responsibilities as identified in
the audit charter, and also that adequate assurance is provided regarding the enterprise’s
strategic objectives and organizational goals in important audit areas.
2202.2.2 Long-term audit schedules should be reevaluated on a periodic basis (at least annually) to be
responsive to organizational needs. This reevaluation allows the audit function to include any
additional assurance and audit engagements that may be required in response to unexpected
critical events or situations. Any replaced planned audits should be reassigned to a future period.
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2202.3.1 The audit schedule can be communicated to the enterprise with tentative audit start dates,
preliminary scope and key stakeholders.
COBIT 2019
Governance and
Purpose
Management
Objectives
EDM01 Ensured Provide a consistent approach integrated and aligned with the enterprise governance approach.
Governance I&T-related decisions are made in line with the enterprise’s strategies and objectives and desired
Framework Setting and value is realized. To that end, ensure that I&T-related processes are overseen effectively and
Maintenance transparently; compliance with legal, contractual and regulatory requirements is confirmed; and
the governance requirements for board members are met.
EDM02 Ensured Secure optimal value from I&T-enabled initiatives, services and assets; cost-efficient delivery of
Benefits Delivery solutions and services; and a reliable and accurate picture of costs and likely benefits so that
business needs are supported effectively and efficiently.
BAI11 Managed Realize defined project outcomes and reduce the risk of unexpected delays, costs and value
Projects erosion by improving communications to and involvement of business and end users. Ensure the
value and quality of project deliverables and maximize their contribution to the defined programs
and investment portfolio.
1203.2 IT audit and assurance practitioners shall develop and document an IT audit and
assurance engagement program that describes the step-by-step procedures and instructions to
be used to complete the audit.
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2203.1 Introduction This guideline provides guidance in engagement planning for IT audit and assurance
practitioners. The guideline content section is structured to provide information on the key audit and assurance
engagement topics:
2203.2 Objectives
2203.5 Documenting the audit engagement project plan and audit program
2203.2 Objectives
2203.2.1 Practitioners should define the audit engagement objectives and document them in the audit
engagement project plan. In addition to confirming an understanding of the enterprise’s goals,
operations and challenges, documentation of the audit engagement objectives ensures that
testing lends assurance that controls are in place and operating effectively.
2203.2.2 Practitioners should develop an audit engagement project plan that takes into consideration the
objectives of the audit engagement. These objectives might influence the audit engagement,
e.g., resources, timeline and deliverables.
2203.3.1 Before beginning an audit engagement, practitioners should plan their work in a manner
appropriate for meeting the audit objectives. As part of the planning process, practitioners should
obtain an understanding of the enterprise and its processes. This will assist them in determining
the significance of the areas being reviewed as they relate to the objectives of the enterprise.
Practitioners should establish the scope of the audit work based on the audit objectives.
2203.3.2 As part of a preliminary assessment, practitioners should gain an understanding of the types of
personnel, events, transactions and practices that can have a significant effect on the specific
enterprise, function, process or data that is the subject of the audit engagement. The auditor’s
knowledge of the enterprise should include the business and financial risk facing the enterprise,
conditions in the enterprise marketplace, and the extent to which the enterprise relies on
outsourcing to meet its objectives. Practitioners should use this information in identifying
potential problems, formulating the objectives and scope of the work, performing the work, and
considering actions of management for which they should be alert.
2203.4.1 A risk assessment should be performed to gain an understanding of the enterprise and its
environment (i.e., strategic objectives and internal and external obligations). This understanding
will enable the practitioner to identify areas and activities for review.
2203.4.2 A risk assessment and prioritization of identified risk for the area under review and the enterprise
IT environment should be carried out to the extent necessary.
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2203.4.3 During the planning process, practitioners should establish levels of planning materiality such that
the audit work will be sufficient to meet the audit objectives and will use audit resources
efficiently. For example, in the review of an existing system, practitioners should evaluate
materiality of the various components of the system in planning the audit engagement for the
work to be performed. Both qualitative and quantitative aspects should be considered in
determining materiality.
2203.4.4 Before beginning an audit engagement and during the course of the audit, practitioners should
consider compliance with applicable laws and professional auditing standards.
2203.4.5 When practitioners evaluate internal controls for the purpose of placing reliance on control
procedures in support of information being gathered as part of a larger audit exercise (such as an
audit of historical financial information), they should make a preliminary evaluation of the controls
and develop the audit engagement project plan on the basis of that evaluation.
2203.5 Documenting the Audit Engagement Project Plan and Audit Program
2203.5.1 Practitioners’ work papers should include the audit engagement project plan.
2203.5.2 A clear project definition is a critical factor to ensure project effectiveness and efficiency. An audit
engagement project plan (“project plan”) should include in the terms of reference items such as:
Areas to be audited
Type of work planned
High-level objectives and scope of the work
Fact-finding interviews to be conducted
Relevant information to be obtained
Procedures to verify or validate the information obtained and its use as audit evidence
General topics, such as:
Budget
Resource availability and allocation
Schedule dates
Type of report
Intended audience
Deliverables
Specific topics, such as:
Identification of tools needed for gathering evidence, performing tests and
preparing/summarizing information for reporting
Assessment criteria (enterprise policies, procedures or protocol) to be used to evaluate
current practices
Risk assessment documentation
Reporting requirements and distribution
External reports available (information that can be relied upon, if any)
Reports to be requested, if necessary, such as Statement on Standards for Attestation
Engagements 18 (SSAE18)
2203.5.3 The project plan should include the requirements related to the timeline of the audit engagement.
These elements include but are not limited to the period covered and the different completion
dates to perform the audit engagement within the agreed-on schedule. The project plan should
include budgetary expenditures and audit team resource allocations for each project phase.
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2203.5.4 Practitioners should ensure that audit team resources assigned to the audit engagement have the
right skills, knowledge and experience to successfully complete the audit engagement.
Practitioners should assign the roles and responsibilities that best match the competencies of the
IT audit team members.
2203.5.5 The project plan should list all deliverables that are linked to the audit engagement.
2203.5.6 The project plan and any changes to the project plan should be approved by IT audit and
assurance management.
2203.5.7 After approval by IT audit and assurance management, parts of the project plan (e.g., scope,
timeline, document requirements, interview schedule) should be communicated to the auditees
so they can ensure access to and availability of the needed documents and resources.
2203.6.1 The audit engagement project plan should be updated and changed as necessary (with
appropriate approvals by IT audit and assurance management) during the course of the audit
engagement.
If a concern that warrants the auditor’s attention should arise once the audit is under way,
practitioners should determine how to address the concern. Options include but are not limited to
expanding the scope of the audit or scheduling a separate assessment. The IT audit practitioner
shall immediately inform the auditee of any changes to the scope of the audit or the schedule
based on the newly identified concern.
2203.6.2 Planning an audit engagement is a continual and iterative process. As a result of unexpected
events, changes in conditions or audit evidence obtained, practitioners may need to modify the
planned nature, timing and extent of further audit procedures. For example, when a new regulation
is released, an assessment may need to be done immediately to determine any possible impact to
the enterprise in terms of compliance.
2203.6.3 The audit plan should consider the possibility of unexpected events that imply risk for the
enterprise. Accordingly, the audit engagement project plan should support prioritization of such
events within the audit and assurance processes, based on risk.
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2203.7.1 Adjust the audit program during the course of the IT audit and assurance engagement to
(cont.) address issues that arise during the engagement, such as new risk, incorrect assumptions or
findings from procedures already performed.
Ensure that the work being performed remains aligned with business objectives during post-
planning phases of the audit.
For internal engagements:
Prepare a separate engagement letter for each internal IT audit and assurance
engagement.
Communicate relevant elements of the audit charter to the auditee, using an
engagement letter or equivalent to further clarify or confirm involvement in specific
engagements.
Communicate the plan so that the auditee is fully informed and can provide appropriate
access to individuals, documents and other resources when required.
For external engagements:
Prepare a separate engagement letter for each external IT audit and assurance
engagement.
Prepare a project plan and audit program for each external IT audit and assurance
engagement, which should document the objectives and scope of the engagement, at a
minimum.
Quantify and justify the amount of IT audit resources needed to meet the engagement
requirements of each IT audit and assurance engagement.
COBIT 2019
Governance and
Purpose
Management
Objectives
EDM01 Ensured Provide a consistent approach integrated and aligned with the enterprise governance approach.
Governance I&T-related decisions are made in line with the enterprise’s strategies and objectives and desired
Framework Setting and value is realized. To that end, ensure that I&T-related processes are overseen effectively and
Maintenance transparently; compliance with legal, contractual and regulatory requirements is confirmed; and
the governance requirements for board members are met.
EDM02 Ensured Secure optimal value from I&T-enabled initiatives, services and assets; cost-efficient delivery of
Benefits Delivery solutions and services; and a reliable and accurate picture of costs and likely benefits so that
business needs are supported effectively and efficiently.
EDM03 Ensured Risk Ensure that I&T-related enterprise risk does not exceed the enterprise’s risk appetite and risk
Optimization tolerance, the impact of I&T risk to enterprise value is identified and managed, and the potential
for compliance failures is minimized.
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Statements 1204.1 IT audit and assurance practitioners shall conduct the work in accordance with the
approved IT audit plan to cover identified risk and within the agreed-on schedule.
1204.2 IT audit and assurance practitioners shall provide supervision to IT audit staff for whom
they have supervisory responsibility to accomplish audit objectives and meet applicable
professional audit standards.
1204.3 IT audit and assurance practitioners shall accept only tasks that are within their
knowledge and skills, or for which they have a reasonable expectation of either acquiring the skills
during the engagement or achieving the task under supervision.
1204.4 IT audit and assurance practitioners shall obtain and preserve sufficient and appropriate
evidence to achieve the audit objectives.
1204.5 IT audit and assurance practitioners shall document the audit process and describe the
audit work and the audit evidence that support findings and conclusions.
1204.6 IT audit and assurance practitioners’ findings and conclusions are to be supported by root
cause analysis and interpretation of this evidence.
1204.7 IT audit and assurance practitioners shall provide an appropriate audit opinion or
conclusion and include any scope limitation where required evidence is obtained through
additional test procedures.
2204.1 Introduction This guideline provides guidance to IT audit and assurance practitioners in performing the
audit engagement and supervising IT audit team members. The guideline content section is structured to provide
information on the following key audit and assurance engagement topics:
2204.4 Supervision
2204.5 Evidence
2204.6 Documenting
2204.7 Findings
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2204.2.1 Practitioners shall plan and perform each audit engagement in accordance with the approved IT
audit plan. Setting up an audit engagement project plan, as detailed in Standard 1203
Engagement Planning, allows practitioners to understand all elements in scope, cover all
identified risk and ensure that the skills and knowledge required to execute the audit engagement
within the agreed-on schedule are available.
2204.3.1 Practitioners in charge of the audit engagement should define and manage the roles and
responsibilities of the IT audit team members throughout the engagement, addressing the
following at a minimum:
Designing the methodology and approach
Creating audit work programs
Defining execution and review roles
Dealing with issues, concerns and problems as they arise
Documenting and clearing the findings
Writing the report
2204.3.2 Based on the engagement needs, practitioners in charge should consider the required competencies
for the specific audit engagement. They should set up an engagement team that has the combined
skills, knowledge and experience to complete the audit engagement successfully. Practitioners should
make sure to assign those roles and responsibilities to the IT audit team members who have the skill
sets that best match the requirements of the engagement.
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2204.3.3 Practitioners should accept only the roles, responsibilities and associated tasks that are
consistent with their knowledge and skills. Time and cost issues might prohibit practitioners from
acquiring all the necessary knowledge and skills before the start of an audit engagement;
therefore, practitioners are allowed to accept roles, responsibilities and associated tasks if they
have reasonable expectation that appropriate measures will be taken during the audit
engagement to ensure successful completion. The following measures would allow for such a
reasonable expectation:
Learning on the job—In certain circumstances, it will be possible for practitioners to acquire
the necessary skills and knowledge during the audit engagement.
Supervision—Practitioners in charge could arrange for adequate supervision of the IT audit
team members, allowing them to successfully achieve the task under supervision.
External resources—Practitioners in charge could hire external experts for those areas of the
audit engagement for which the team lacks adequate internal knowledge and skills.
Practitioners in charge should consider promoting the development of internal IT audit team
members by having them work closely with the external experts to ensure a transfer of
knowledge and skills to the team.
2204.4 Supervision
2204.4.1 Every task executed during an audit engagement by the IT audit team members should be under
oversight of practitioners who have supervisory responsibilities to ensure that audit objectives
and applicable professional audit standards are met. The extent of supervision required will
depend highly on the skills, knowledge and experience of practitioners executing the task under
review, and on the complexity of the audit engagement.
2204.4.2 Supervision is a process that is present in every step of the audit engagement. Supervision
includes:
Ensuring the IT audit team members have the combined skills, knowledge and experience to
complete the audit engagement successfully
Ensuring an appropriate audit engagement project plan and audit program are set up and
approved
Reviewing the audit engagement work papers
Ensuring that audit engagement communication with auditees and other relevant
stakeholders is accurate, clear, concise, objective, constructive and timely
Ensuring that the approved audit engagement work program is completed at the end of the
audit engagement, unless changes were justified and approved in advance, and that the audit
engagement objectives are met
Providing opportunities for IT audit team members to develop their skills and knowledge
2204.4.3 Reviewing audit engagement work papers is required to ensure that all necessary audit
procedures are performed; evidence gathered is sufficient and appropriate; and conclusions
adequately support the findings of the audit, engagement objectives, and conclusion or opinion.
Considering the objectives, the review should be performed by IT audit team members who have
supervisory responsibilities over the practitioners who perform the audit work.
2204.4.4 During the review process, reviewers should record questions as they arise. When practitioners
respond to questions, care should be taken to retain evidence showing that questions were raised
and answered.
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2204.4.5 Evidence of review should be documented and retained. Options to document evidence of
performing a review include but are not limited to:
Signing and dating each audit engagement work paper after review
Completing an audit engagement work paper review checklist
Preparing a signed document that provides a reference to the audit engagement work papers
under review and details the nature, timing, extent and result of the review
Both digital and hard copy executions of all these options are valid.
2204.4.6 Supervision allows for development and performance evaluation of practitioners. Reviewers have
a privileged view of the work performed by other IT audit team members, which allows for a
detailed and adequate evaluation of their performance. Reviewers should point out areas of
development that can improve performance and advise on ways to advance skills and knowledge.
2204.5 Evidence
2204.5.1 Practitioners should obtain evidence that is sufficient and appropriate to form an opinion or
support the conclusions and achieve the audit objectives. Determinations of whether evidence is
sufficient and appropriate should be based on the importance of the audit objectives and the
effort involved in obtaining the evidence.
2204.5.2 Practitioners should obtain additional evidence if, in their judgment, the evidence obtained does
not meet the criteria of being sufficient and appropriate to form an opinion or support the
conclusions and achieve the audit objectives.
2204.5.3 Practitioners should select the most appropriate procedures to gather evidence, depending on the
subject matter being audited.
2204.5.4 Practitioners should consider reliability of audit evidence (i.e., independence of the provider of the
evidence, qualifications of the provider of the information, objectivity of the evidence, and timing
of the evidence).
2204.5.5 Practitioners should perform appropriate analysis and interpretation to support the audit findings and
form conclusions. Evidence and information received should be compared with expectations
identified or developed by practitioners. Practitioners should be aware of:
Unexpected differences
Absence of anticipated differences
Potential errors
Fraud or illegal acts
Noncompliance with laws or regulations
Unusual or nonrecurring activities
2204.5.6 If deviations from expectations are identified, practitioners should ask management about the
reasons for the differences. If management’s explanations are adequate, based on practitioners’
professional judgment, practitioners should modify their expectations and reanalyze the evidence
and information.
2204.5.7 Significant deviations the auditee does not adequately explain should result in audit findings and
be communicated to executive management or those charged with governance and oversight of
the audit function. Depending on the circumstances, practitioners may recommend appropriate
actions to take.
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2204.6 Documenting
2204.6.1 Practitioners should prepare, in a timely manner, sufficient, appropriate and relevant
documentation that provides a basis for conclusions and that contains evidence of the review
performed. Sufficient, appropriate and relevant documentation should enable a prudent and
informed person with no previous connection to the audit engagement to re-perform the tasks
performed during the audit engagement and reach the same conclusion. Documentation should
include:
Audit engagement objectives and scope of work
Audit engagement project plan
Audit work program
Audit steps performed
Evidence gathered
Conclusions and recommendations
2204.6.2 Documentation aids in planning, performing and reviewing audit engagements because it:
Identifies the IT audit team members who performed each audit task and specifies their roles
in preparing and reviewing the documentation
Records the evidence requested
Supports the accuracy, completeness and validity of the work performed
Provides support for the conclusions reached
Facilitates the review process
Documents whether the engagement objectives were reached
Provides the basis for a quality improvement program
2204.6.3 Practitioners should establish a preliminary program for review before the work begins. The audit
program should be documented in a manner that permits practitioners to record completion of
the audit work and identify work that remains to be done. As the work progresses, practitioners
should evaluate the adequacy of the audit program based on information gathered during the
audit engagement. When practitioners determine that the planned procedures are not sufficient,
they should modify the audit program accordingly.
2204.6.4 Performance and supervision activities should be documented in audit engagement work papers.
The design and content of the audit engagement work papers vary, depending on the
circumstances of the particular audit engagement. However, IT audit and assurance management
should create a limited number of standard template work papers for different types of audit
engagements. Standard work papers improve the efficiency of the audit engagement and
facilitate supervision. IT audit and assurance management should also determine the media
carriers to be used and the storage and retention procedures for the work papers.
2204.6.5 Practitioners should ensure that documentation of the work performed is completed on a timely
basis. All information and evidence required to form a conclusion or opinion should be obtained
prior to the issue date of the audit report. Audit engagement work papers should include the date
they were prepared and reviewed.
2204.6.6 IT audit and assurance management controls the audit engagement work papers and provides
access to authorized personnel. Access requests to audit engagement work papers by external
auditors should be approved by executive management and those charged with governance.
Access requests by external parties, other than external auditors, should be approved by
executive management and those charged with governance and oversight of the audit function,
with the advice of legal counsel.
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2204.7 Findings
2204.7.1 Practitioners should analyze the evidence and information gathered. Significant deviations from
expectations should result in findings. Practitioners should confirm the findings with the auditee and
assess the impact of the findings on other aspects of the control environment.
2204.7.2 Practitioners may propose corrective actions to be taken but should never execute them. Should
the auditee perform corrective actions that remediate the original finding before the end of the
audit engagement, practitioners should include the corrective actions taken in the documentation.
2404.7.3 Practitioners should conclude on the findings identified and assess their impact on the audit
objectives. Conclusions should be formed on the original findings. If corrective actions have been
performed, an addendum to the conclusion can be formulated explaining the corrective action
and the impact of the corrective action on the original conclusion.
2404.7.4 All the conclusions formulated and whether the audit objectives have been achieved should be
documented in the audit engagement report. Detailed guidance on reporting can be found in
Reporting Standard 1401 and Guidelines 2401.
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Include in documentation:
Audit objectives and scope of work, the audit program, audit steps performed, evidence
gathered, findings, conclusions and recommendations
Detail sufficient to enable a prudent, informed person to re-perform the tasks performed
during the engagement and reach the same conclusion
Identification of who performed each task and each team member’s role in preparing and
reviewing the documentation
The date the documentation was prepared and reviewed
Obtain relevant written representations from the auditee that clearly detail critical areas of
the engagement, issues that have arisen and their resolution, and assertions made by the
auditee.
Determine that auditee representations have been signed and dated by the auditee to
indicate acknowledgment of responsibilities with respect to the engagement.
Document and retain in work papers any representations received during the course of
conducting the engagement, either written or oral.
COBIT 2019
Management Purpose
Objectives
APO08 Managed Enable the right knowledge, skills and behaviors to create improved outcomes, increased
Relationships confidence, mutual trust and effective use of resources that stimulate a productive relationship
with business stakeholders.
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
Statements 1205.1 IT audit and assurance practitioners shall obtain sufficient and appropriate evidence to
draw reasonable conclusions.
1205.2 Applying professional skepticism, IT audit and assurance practitioners shall evaluate the
sufficiency of evidence obtained to support conclusions and achieve engagement objectives.
1205.3 Along with other working papers, IT audit and assurance practitioners shall preserve
evidence for the time period that aligns with formally defined and approved retention periods.
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2205.1 Introduction The purpose of this guideline is to provide guidance to IT audit and assurance practitioners in
obtaining sufficient and appropriate evidence, evaluating the received evidence and preparing appropriate audit
documentation. The guideline content section is structured to provide information on the following key audit and
assurance topics:
2205.2.1 When planning and performing an engagement, practitioners should consider the types of
evidence to be gathered, its use to meet engagement objectives and its varying levels of reliability.
The various types of evidence that practitioners should consider using include:
Observed processes and existence of physical items
Documentary evidence
Representations
Analysis
2205.2.2 Observed processes and existence of physical items can include observations of activities,
property and IT functions, such as:
A network security monitoring system in operation
An inventory of media in an offsite storage location
2205.2.4 Written and oral representations of those being audited can include:
Written statements by management, such as representations about the existence and
effectiveness of internal controls or plans for a new system implementation
Oral representations of such things as how a process works or plans for management follow-
up on actions related to the security awareness program
2205.2.5 The results of analyzing information through comparisons, simulations, calculations and
reasoning can also be used as evidence. Examples include:
Benchmarking IT performance against other enterprises or past periods
Comparison of error rates between applications, transactions and users
Re-performance of processes or controls
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2205.3.1 Practitioners should obtain sufficient and appropriate evidence to allow them to draw reasonable
audit conclusions. This evidence includes:
Procedures performed
Results of procedures performed
Source documents (in either electronic or paper format), records and corroborating
information used to support the audit engagement
Documentation that the work was performed and complies with applicable laws, regulations
and policies
2205.3.2 If evidence obtained in the form of oral representations is critical to the audit opinion or
conclusion, practitioners should consider obtaining confirmation of the representations, either in
writing or electronically (such as through email). Practitioners should also consider alternative
evidence to corroborate such representations to ensure their reliability.
2205.3.3 When gathering evidence, the professional should consider the following:
The time, level of effort and cost of obtaining the evidence compared to the sufficiency of the
evidence in reducing audit risk
Significance of the matter being evaluated and of the audit procedure requiring the evidence
in achieving the audit objectives and reducing audit risk
Electronic evidence may not be retrievable in whole or in part after the passage of time
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2205.3.4 Procedures used to gather evidence vary, depending on the characteristics of the information
system being audited, timing of the audit, audit scope and objectives, and professional judgment.
Evidence can be gathered through the use of manual audit procedures, computer-assisted audit
techniques (CAATs) or a combination of both. Practitioners should select the most appropriate
procedure in relation to the IT audit objective. The following procedures should be considered:
Inquiry and confirmation—The process of seeking information from experienced people who
are familiar with the subject matter. The experienced people need not be members of the
enterprise being audited. This procedure can range from formal written inquiries to informal
oral inquiries.
Observation—Observing a procedure or process being performed by those individuals who
are typically responsible for its performance or observing physical items such as facilities,
computer hardware, or information system settings or configurations. This type of evidence
is limited to the point in time when the observation took place. Practitioners should take into
account that observing the performance of a process or procedure may affect the way the
procedure or process is performed.
Inspection—Examination of internal or external documents and records. The items to be
inspected can be supplied in paper or electronic form. Inspection can also include physical
asset examination.
Analytical procedures—Evaluating data by examining possible relationships within the data
or between the data and other relevant information. This also includes examining
fluctuations, trends and inconsistent relationships.
Recalculation/computation—The process of checking the arithmetical and mathematical
accuracy of documents or records either manually or through the use of CAATs.
Re-performance—Independent performance of procedures and/or controls that were
originally executed by the information system or by the enterprise itself.
Other generally accepted methods—Other generally accepted procedures that practitioners
can follow in gathering sufficient and appropriate evidence, such as engaging in social
engineering, acting as a mystery guest or conducting ethical intrusion testing.
2205.3.5 When gathering evidence, practitioners should consider the independence and qualifications of
the entity providing the evidence. For example, corroborative audit evidence from an independent
third party can be more reliable than audit evidence obtained from the enterprise being audited.
Physical audit evidence is generally more reliable than the representations of an individual.
2205.3.6 If there is a possibility that the gathered evidence will become part of a legal proceeding,
practitioners should consult with the appropriate legal counsel to determine whether there are any
special requirements that will impact the way evidence needs to be gathered, presented and
disclosed.
2205.3.7 In situations where practitioners are not able to obtain sufficient audit evidence—e.g., if
individuals or management should refuse to provide the satisfactory and appropriate evidence
necessary to achieve the IT audit objectives—practitioners should disclose the situation to audit
management and, if necessary, to those charged with audit governance, in accordance with the
audit organization’s established procedures. Restrictions or limitations on the scope of the audit
and achievement of the audit objectives should also be disclosed in the communication of the
audit results.
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2205.3.8 Practitioners should retain evidence after completion of the audit work to ensure that the
evidence is:
Available for a time period and in a format that complies with the audit organization’s policies
and relevant professional standards, laws and regulations
Protected from unauthorized disclosure or modification throughout its preparation and
retention
Properly disposed of at the end of the retention period
2205.4.1 Evidence is sufficient and appropriate when it provides a reasonable basis for supporting the
findings or conclusions within the context of the audit objectives. If, in the practitioner’s judgment,
the evidence does not meet these criteria, the practitioner should obtain additional evidence or
perform additional procedures to reduce the limitations or uncertainties related to the evidence.
For example, a program listing may not be adequate evidence until other evidence has been
gathered to verify that it represents the actual program used in the production process.
2205.4.2 When evaluating the reliability of evidence obtained during an audit, practitioners should consider
the characteristics and properties of the evidence, such as its source, nature (written, oral, visual
or electronic), authenticity (presence of digital or manual signatures, date/time stamps) and
relationships between evidence that provides corroboration from multiple sources. In general, the
reliability of evidence is ranked from low to high based on the procedures used to obtain the
evidence, as follows:
Inquiry and confirmation
Observation
Inspection
Analytical procedures
Recalculation or computation
Re-performance
For each of the previous procedures, evidence reliability is generally greater when it is:
In written form, rather than obtained from oral representations
Obtained directly by the practitioners rather than indirectly by the entity being audited
Obtained from independent sources
Certified by an independent party
Maintained by an independent party
2205.4.3 Practitioners should consider the time period during which information exists or is available in
determining the nature, timing and extent of substantive testing and, if applicable, compliance
testing. For example, evidence processed by electronic data interchange (EDI), document image
processing (DIP) and spreadsheets may not be retrievable after a specified period of time if
changes to the files are not controlled or if the files are not backed up. Documentation availability
could also be impacted by the enterprise document retention policies.
2205.4.4 If there is an independent third-party audit, practitioners should consider whether testing of
controls relevant to the subject of the audit was performed, and whether any reliance can be
placed on the results of that testing.
2205.4.5 Practitioners should obtain evidence that is sufficient and appropriate to enable a qualified
independent party to re-perform the tests and obtain the same results and conclusions.
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2205.5.1 During the performance of the audit, practitioners should document the evidence obtained and
ensure that documentation is retained and available during a predefined time period, in a format
that complies with enterprise policies and relevant professional standards, laws and regulations.
2205.5.2 Evidence obtained during the performance of the audit should be appropriately identified, cross-
referenced and cataloged to facilitate determination of the overall sufficiency and
appropriateness of evidence. These steps are necessary to provide a reasonable basis for the
findings and conclusions within the context of the audit objectives, and to allow for easy retrieval
by other IT audit team members or an independent party.
2205.5.3 Practitioners should ensure that documentation of evidence is protected from unauthorized
access, disclosure or modification throughout its preparation and retention. Periods of retention
may be influenced by external requirements. For example, for enterprises subject to U.S.
Securities and Exchange Commission (SEC) requirements, financial auditors must retain certain
records for a period of seven years from conclusion of the audit or review.1
2205.5.4 Practitioners should dispose of evidence documentation at the end of the established retention
period.
COBIT 2019
Purpose
Management Objective
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
1
US Securities and Exchange Commission, “Final Rule: Retention of Records Relevant to Audits and Reviews,” www.sec.gov/rules/final/33-
8180.htm#:~:text=Under%20the%20new%20rule%2C96,of%20the%20audit%20or%20review
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Statements 1206.1 IT audit and assurance practitioners shall consider using the work of other experts for the
engagement, where appropriate.
1206.2 IT audit and assurance practitioners shall assess and approve the adequacy of the other
experts’ professional qualifications, competencies, relevant experience, resources, independence
and quality-control processes prior to the engagement.
1206.3 IT audit and assurance practitioners shall assess, review and evaluate the work of other
experts as part of the engagement and document the conclusion on the extent of use and
reliance on their work.
1206.4 IT audit and assurance practitioners shall determine whether the work of other experts,
who are not part of the engagement team, is adequate and complete to conclude on the current
engagement objectives. The practitioners should also clearly document the conclusion.
1206.5 IT audit and assurance practitioners shall determine whether the work of other experts will
be relied upon and incorporated directly or referred to separately in the report.
1206.6 IT audit and assurance practitioners shall apply additional test procedures to gain
sufficient and appropriate evidence in circumstances where the work of other experts does not
provide sufficient and appropriate evidence.
1206.7 IT audit and assurance practitioners shall provide an audit opinion or conclusion, and
include any scope limitation where required evidence is not obtained through additional test
procedures.
2206.1 Introduction This guideline provides guidance to IT audit and assurance practitioners considering the use of
work of other experts. The guideline content section is structured to provide information on the following key audit
and assurance engagement topics:
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2206.2.1 Practitioners who do not have the required competencies to perform the audit engagement, either
in whole or in part, should consider seeking assistance from other experts with the required skills.
2206.2.2 Using the work of other experts should be considered if there are constraints that could impair the
audit work to be performed, such as lack of technical knowledge required by the nature of the
tasks to be performed, scarce audit resources, time constraints and potential independence
issues. The use of other experts also should be considered if it would enhance the quality of the
engagement.
2206.2.3 Practitioners are not expected to have a knowledge level equivalent to that of the other experts.
Practitioners should, however, have sufficient knowledge of the work performed to be able to
guide and review the work of the other experts. When relying on the work of others, practitioners
should present objective evidence that verifies the competency and skill level of the experts.
2206.2.4 Practitioners should base their choice of specific experts and the use of other experts’ work on
objective criteria.
2206.2.5 Practitioners should communicate and document performance requirements to other experts in a
contract or agreement prior to the experts beginning work on the engagement.
2206.2.6 If other experts’ access to records or systems is prohibited by enterprise internal policies, practitioners
should determine the appropriate extent of use and reliance on the other experts’ work.
2206.2.7 If the necessary experts cannot be obtained, practitioners should document the impact on
achieving the audit objectives and include specific tasks in the audit plan to manage the resulting
audit risk. If the resulting audit risk cannot be managed, practitioners may need to decline the
audit engagement.
2206.2.8 IT audit and assurance practitioners may place reliance on System and Organization Control
(SOC) reporting as part of their reviews.
2206.3.1 If an audit engagement involves using the work of other experts, practitioners should consider the
adequacy of the other experts while planning the IT audit work by assessing the other experts’
professional qualifications, competencies, relevant experience, resources and use of quality
control processes.
2206.3.2 Practitioners should consider the independence and objectivity of other experts before relying on
their work. The processes for selection and appointment, the organizational status, the reporting
line, and the effect of the other experts’ recommendations on management practices are typical
indicators of the other experts’ independence and objectivity.
2206.4.1 Practitioners should verify that the audit charter or engagement letter specifies their right of
access to the other experts’ work. Practitioners should have access to all work papers, supporting
documentation and reports created by the other experts, if such access does not create legal or
privacy issues.
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2206.4.2 Practitioners should consider the activities of other experts and their effects on the IT audit
objectives while planning the IT audit work, including:
Obtaining an understanding of the other experts’ scope of work, approach, timing and use of
quality control processes
Determining the level of review required
2206.4.3 The nature, timing and extent of audit evidence required will depend upon the significance and
scope of the other experts’ work. During the planning process, practitioners should identify the
level of review that is required to provide sufficient and appropriate audit evidence to achieve the
overall IT audit objectives effectively. Practitioners should review the other experts’ final report,
methodology or audit programs, and work papers.
2206.4.4 In reviewing work papers, practitioners should assess whether the other experts’ work was
appropriately planned, supervised, documented and reviewed, in order to consider the
appropriateness and sufficiency of the audit evidence provided and to determine the extent of use
and reliance on the experts’ work. This assessment may include a retest of the work of other
experts. Compliance with relevant professional standards should also be assessed. Overall,
practitioners should assess whether the work of other experts is adequate and complete to
enable them to conclude on the current IT audit objectives and document a conclusion.
2206.4.5 Practitioners should perform sufficient reviews of other experts’ final reports to confirm that:
The scope specified in the audit charter, terms of reference or letter of engagement has been
met.
Any significant assumptions used by the other experts have been identified.
The findings and conclusions reported are adequately supported by evidence.
2206.5.1 Interdependencies between customers and suppliers regarding the processing and outsourcing of
noncore activities contribute to a complex audit environment. Parts of the environment being
audited can be controlled and audited by other independent functions or enterprises. The
outsourcing enterprise will receive reports from those third parties about the control environment
of the outsourced operations. In some cases, these operations may lessen the need for IT audit
coverage even though practitioners do not have access to supporting documentation and work
papers. Practitioners should be cautious in providing an opinion in such cases.
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2206.5.2 Practitioners should assess the usefulness and appropriateness of the work performed by other
experts and consider any significant findings reported by the other experts. Practitioners are
responsible for determining the extent to which the work of other experts may be relied upon,
incorporated directly or referred to separately in the report. Practitioners should also assess the
effect of other experts’ findings and conclusions on the overall IT audit objective. Practitioners
also should verify that any additional work required to meet the overall IT audit objective was
completed. All assertions made by other experts should be verified and formally approved by
management. Detailed guidance on this topic can be found in Standard 1007 Assertions.
2206.6.1 Based on their assessment of the work of other experts, practitioners should apply additional test
procedures to gain sufficient and appropriate audit evidence if the work of other experts does not
provide such evidence.
2206.6.2 Practitioners should consider whether supplemental testing of the other experts’ work is required.
2206.7.1 It is the practitioner’s responsibility to formulate an audit opinion or conclusion. Practitioners need
to determine whether the work performed by other experts was sufficient to support the audit
opinion or conclusion.
2206.7.2 If additional test procedures performed do not provide sufficient and appropriate audit evidence,
practitioners should provide an appropriate audit opinion or conclusion, and include scope
limitations if required.
2206.7.3 Practitioners’ views and comments on the adoptability and relevance of the other experts’ report
should form a part of the audit engagement report if the experts’ report is utilized in forming
practitioners’ opinion.
2206.7.4 If appropriate, practitioners should consider the extent to which management has implemented
any recommendations of other experts. This should include assessing whether management has
committed to remediating issues identified by other experts within appropriate time frames and
the current status of remediation.
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COBIT 2019
Purpose
Management Objective
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
Statements 1207.1 IT audit and assurance practitioners shall consider the risk of irregularities and illegal acts
during the engagement.
1207.2 IT audit and assurance practitioners shall document and communicate irregularities or
illegal acts to the appropriate party in a timely manner. Note that some communications (e.g.,
with regulators) may be restricted. As a result, the practitioner’s communications may require
discussion with those charged with governance and oversight of the audit function (e.g., the
board of directors and/or the audit committee).
2207.1 Introduction This guideline details the responsibilities of both management and IT audit and assurance
practitioners with regard to irregularities and illegal acts. The guideline content section is structured to provide
information on the following key audit and assurance engagement topics:
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2207.2.1 Irregularities and illegal acts can directly impact an enterprise in many negative ways, affecting
finances and reputation, and indirectly affecting productivity and the retention of employees. It is
important that enterprises have awareness, prevention and detection mechanisms in place to
identify irregularities and illegal acts quickly. Irregularities and illegal acts are more likely to occur
if there are nonexistent, poorly designed or malfunctioning controls.
2207.2.2 Irregularities and illegal acts can be committed by an employee at any level within the enterprise.
They include activities such as, but not limited to:
Fraud, which is any act involving the use of deception to obtain illegal advantage
Deliberate misrepresentation of facts with the aim of gaining advantage or hiding
irregularities or illegal acts
Acts that involve noncompliance with laws and regulations, including failure to ensure that IT
systems or processes meet applicable laws and regulations
Unauthorized disclosure of data subject to privacy laws
Data retention practices that violate applicable privacy laws and regulations
Acts that involve noncompliance with enterprise agreements and contracts entered with third
parties, such as banks, suppliers, vendors, service providers and stakeholders
Manipulation, falsification, forgery or alteration of records or documents, whether in
electronic or paper form
Suppression or omission of the effects of transactions from records or documents, whether
in electronic or paper form
Inappropriate or deliberate leakage of confidential information
Recording transactions (whether in electronic or paper form) that lack substance and are
known to be false—e.g., false disbursements, payroll fraud, tax evasion
Misappropriation and misuse of assets
Skimming or defalcation, which is the misappropriation of cash before it is recorded in the
financial records of an enterprise
Acts that violate intellectual property (IP) rights, such as copyrights, trademarks and patents,
whether intentional or unintentional
Granting unauthorized access to information and systems
Errors in financial or other records that arise due to unauthorized access to data and systems
2207.2.3 The determination of whether a particular act is illegal generally is based on the advice of an
informed legal professional or may have to await final determination by a court of law.
Practitioners should be concerned primarily with the effect or potential effect of the irregular
action, irrespective of whether the act is suspected or proved to be illegal.
2207.2.4 Not all irregularities should be considered fraudulent activities. The determination of fraudulent
activities depends on the legal definition of fraud in the respective jurisdiction. Fraudulent
irregularities include but are not limited to:
Deliberate circumvention of controls with the intent to conceal the perpetuation of fraud
Unauthorized use of assets or services
Abetting or helping to conceal these types of activities
Nonfraudulent irregularities may include:
Gross negligence
Unintentional illegal acts
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2207.2.5 There may be instances in which a practitioner experiences retaliation or intimidation after
reporting potential illegal acts or fraud. Taking into consideration the parties involved, the chief
audit executive (or VP/director of audit), executive management, and those charged with
governance and oversight of the audit function (e.g., the board of directors and/or the audit
committee) should collaborate with legal counsel to address the matter. Their efforts should
include actions that will resolve issues related to the threats or intimidation and may include
coordination with local law enforcement agencies.
2207.3.1 It is primarily the responsibility of management and the board to provide controls to deter, prevent
and detect irregularities and illegal acts.
2207.3.2 Management typically uses the following means to obtain reasonable assurance that
irregularities and illegal acts are deterred, prevented or detected in a timely manner:
Designing, implementing and maintaining internal control systems—including transaction
review and approval, and management review procedures—to prevent and detect
irregularities or illegal acts.
Policies and procedures governing employee conduct
Compliance validation and monitoring procedures
Designing, implementing and maintaining suitable systems for reporting, recording and
managing incidents relating to irregularities or illegal acts
Policies and procedures governing compliance and regulatory requirements
2207.3.3 Management should disclose to practitioners its knowledge of any irregularities or illegal acts, the
areas affected, and any action taken, whether such acts are alleged, suspected or proved.
2207.3.4 If an act of an irregular or illegal nature is alleged, suspected or detected, management should aid
the process of investigation and inquiry.
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2207.4.1 Practitioners should consider defining in the audit charter the responsibilities of management and
the responsibilities of IT audit and assurance management with respect to preventing, detecting
and reporting irregularities so that these are clearly understood for all audit work. Where these
responsibilities are documented in enterprise policy or a similar document, the audit charter
should include a statement to that effect.
2207.4.2 Practitioners should understand that control mechanisms cannot completely eliminate the
possibility of irregularities or illegal acts occurring. Practitioners are responsible for assessing the
risk of irregularities or illegal acts, evaluating the impact of identified irregularities, and designing
and performing tests that are appropriate for the nature of the audit assignment.
2207.4.3 Practitioners are not responsible for the prevention or detection of irregularities or illegal acts. An
audit engagement cannot guarantee that irregularities will be detected. Even if an audit is planned
and performed appropriately, irregularities can go undetected, for instance, if there is collusion
between employees or collusion between employees and outsiders, or if management is involved
in the irregularities. The aim is to determine that the control is in place, adequate, effective and
complied with.
2207.4.4 Practitioners who have specific information about the existence of an irregularity or illegal act
have an obligation to report it.
2207.4.5 Practitioners should inform management and those charged with governance if they have
identified situations in which there is a higher level of risk for a potential irregularity or illegal act,
even if none is detected.
2207.4.6 Practitioners should be reasonably familiar with the area under review to be able to identify risk
factors that may contribute to the occurrence of irregular or illegal acts.
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2207.5.1 Practitioners should assess the risk of occurrence of irregularities or illegal acts connected with
the area under audit following the use of the appropriate methodology. In preparing this
assessment, practitioners should consider factors including:
Organizational characteristics, such as corporate ethics, organizational structure, adequacy
of supervision, compensation and reward structures, the extent of corporate performance
pressures, and enterprise direction
History of the enterprise, past occurrences of irregularities, and the activities subsequently
taken to mitigate or minimize the findings related to irregularities
Recent changes in management, operations or IT systems, and the current strategic direction
of the enterprise
Impacts resulting from new strategic partnerships
Types of assets held or services offered, and their susceptibility to irregularities
Evaluation of the strength of relevant controls and vulnerabilities that could allow established
controls to be circumvented or bypassed
Applicable regulatory or legal requirements
Internal policies such as a whistle-blower policy, an insider trading policy, and employee and
management codes of ethics
Stakeholder relations and financial markets
Human resources capabilities
Confidentiality and integrity of market-critical information
Findings from previous audits
The industry and the competitive environment in which the enterprise operates
Findings of reviews conducted outside the scope of the audit, such as findings from
consultants, quality assurance teams or specific management investigations
Findings from the day-to-day conduct of business
Existence of process documentation and/or a quality management system
Technical sophistication and complexity of the information systems supporting the area
under audit
Existence of in-house developed/maintained application systems for core business systems
compared with packaged software
Effects of employee dissatisfaction
Potential layoffs, outsourcing, divestiture or restructuring
Existence of assets that are easily susceptible to misappropriation
Poor organizational financial and/or operational performance
Management’s attitude with regard to ethics
Irregularities and illegal acts that are common to a particular industry or have occurred in
similar enterprises
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2207.5.2 As part of the planning process and performance of the risk assessment, practitioners should
inquire of management, and obtain written representations if appropriate, about the following:
Management’s understanding regarding the level of risk of irregularities and illegal acts in the
enterprise
Whether management has knowledge of irregularities and illegal acts that have or could have
occurred within the enterprise, or may have been directed toward it
Management’s responsibility for designing and implementing internal controls to prevent
irregularities and illegal acts
How the risk of irregularities or illegal acts is monitored or managed
What processes are in place to communicate alleged, suspected or existent irregularities or
illegal acts to appropriate stakeholders
Applicable national and regional laws in the jurisdiction in which the organization operates,
and the extent of the legal department’s coordination has with the risk committee and/or
audit committee
2207.6.1 Practitioners have no explicit responsibility to detect or prevent illegal acts or irregularities, but
they should design procedures for the audit engagement that take into account irregularities and
illegal acts that have been identified.
2207.6.2 Practitioners should use the results of the risk assessment to determine the nature, timing and
extent of the testing required to obtain sufficient audit evidence of reasonable assurance that the
following are identified:
Irregularities that could have a significant effect on the area under audit or on the enterprise
as a whole
Control weaknesses that would result in failure to prevent or detect material irregularities
All significant deficiencies in the design or operation of internal controls that could potentially
affect the issuer’s ability to record, process, summarize and report business data
2207.6.3 Practitioners should review the results of engagement procedures for indications that irregularities or
illegal acts may have occurred. Using computer-assisted audit techniques (CAATs) could aid
significantly in the effective and efficient detection of irregularities or illegal acts.
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2207.6.4 When evaluating results of engagement procedures, risk factors identified should be reviewed
against the actual procedures performed to provide reasonable assurance that all identified risk
has been addressed.
2207.7.1 During an audit engagement, indications of the existence of irregularities or illegal acts may
come to the attention of practitioners. They should consider the potential effect of the
irregularities or illegal acts on the subject matter of the engagement, the audit objectives,
the audit engagement report and the enterprise.
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2207.8.1 Practitioners should communicate the detection of irregularities and illegal acts to the
appropriate people in the enterprise in writing or orally and in a timely manner. The notification
should be directed to management at a higher level than the level at which the irregularities and
illegal acts are suspected to have occurred. In addition, irregularities and illegal acts should be
reported to those charged with enterprise governance, such as the board of directors, trustees,
audit committee or equivalent body. Matters that are clearly insignificant in terms of both financial
effect and indications of control weaknesses may not require reporting to a higher level.
If practitioners suspect that all levels of management are involved, then the findings should be
confidentially reported directly to those charged with enterprise governance, such as the board of
directors, trustees, audit committee or equivalent body, according to the local applicable laws and
regulations. Local laws and regulations may prohibit reporting to parties other than the prescribed
legal authority.
2207.8.2 Practitioners should use professional judgment when reporting an irregularity or illegal act. They
should discuss the findings and the nature, timing and extent of any further procedures to be
performed with an appropriate level of management at least one level above the level of the
individuals who appear to be involved. In these circumstances, it is particularly important that
practitioners maintain their independence.
2207.8.3 Practitioners should carefully consider which individuals to include in the internal distribution of
reports of irregularities or illegal acts. Identification of the occurrence and effects of irregularities
or illegal acts is a sensitive issue, and report distribution carries risks, including:
Further abuse of the control weaknesses as a result of publishing details of them
Loss of customers, suppliers and investors when disclosure (authorized or unauthorized)
occurs outside the enterprise
Loss of key staff and management, including those not involved in the irregularity or illegal
act, due to decreased confidence in management and the future of the enterprise
2207.8.4 Practitioners should consider reporting the irregularity or illegal act separately from any other
audit issues as a way to control the distribution of the report.
2207.8.5 Practitioners should avoid alerting any person who may be implicated or involved in the
irregularity or illegal act, to reduce the potential for those individuals to destroy or suppress
evidence.
2207.8.6 The audit charter should define practitioners’ responsibilities with regard to reporting irregularities
or illegal acts.
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2207.9.1 External reporting of fraud, irregularities or illegal acts may be a legal or regulatory obligation. The
obligation may apply to enterprise management, to the individuals involved in detecting the
irregularities or to both. Legal reporting requirements for the auditor are subject to local
jurisdiction and supersede internal policy and/or contractual agreements. Additional situations
that may require external reporting include:
Compliance with legal or regulatory requirements
Court order
Involvement of funding agency or government agency, in accordance with requirements for
the audits of entities that receive governmental financial assistance
External auditor requests
2207.9.2 If external reporting is required, the form and content of the information reported should be
approved by the appropriate level of IT audit and assurance management and reviewed with
auditee executive management prior to external release, unless prohibited by applicable
regulations or specific circumstances of the audit engagement. Examples of specific
circumstances that may prevent obtaining auditee executive management’s agreement include:
Auditee executive management’s active involvement in the irregularity or illegal act
Auditee executive management’s passive acquiescence to the irregularity or illegal act
2207.9.3 If auditee executive management does not agree to the external release of the report, and if
external reporting is a statutory or a regulatory obligation, then practitioners should consider
consulting the audit committee and legal counsel about the advisability and risk of reporting the
findings outside the enterprise. Even in situations in which practitioners are protected by attorney-
client privilege, they should seek external legal advice and counsel prior to making external
disclosure to confirm that they are in fact protected by attorney-client privilege.
2207.9.4 With the approval of IT audit and assurance management, practitioners should report
irregularities or illegal acts to appropriate regulators on a timely basis. If the enterprise fails to
disclose a known irregularity or illegal act or requires practitioners to suppress these findings,
practitioners should seek legal advice and counsel.
2207.9.5 If practitioners detect an irregularity or illegal act, they should inform the external auditors in a
timely manner.
2207.9.6 If practitioners are aware that management is required to report fraudulent activities to an outside
organization, practitioners should formally advise management of its responsibility.
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COBIT 2019
Governance and
Purpose
Management
Objectives
EDM03 Ensured Risk Ensure that I&T-related enterprise risk does not exceed the enterprise’s risk appetite and risk
Optimization tolerance, the impact of I&T risk to enterprise value is identified and managed, and the potential
for compliance failures is minimized.
APO12 Managed Risk Integrate the management of I&T-related enterprise risk with overall enterprise risk management
(ERM) and balance the costs and benefits of managing I&T-related enterprise risk.
MEA03 Managed Ensure that the enterprise is compliant with all applicable external requirements.
Compliance With
External Requirements
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
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REPORTING STANDARDS
Statements 1401.1 IT audit and assurance practitioners shall provide a report to communicate the results of
each engagement.
1401.2 IT audit and assurance practitioners shall ensure that findings in the audit report are
supported by sufficient and appropriate evidence.
2401.1 Introduction This guideline details all aspects that should be included in an audit engagement report and
provides IT audit and assurance practitioners with considerations to make when drafting and finalizing an audit
engagement report. The guideline content section is structured to provide information on the following key audit and
assurance engagement topics:
2401.2.1 The audit report should include a statement that the audit engagement has been conducted in
accordance with ISACA’s IT audit and assurance standards or other applicable professional
standards: any noncompliance with these standards should be explicitly mentioned in the report.
The scope of the audit engagement should also be included in the audit report. The scope
includes identification or description of the audit subject or activity, the period under review and
the period when the audit was performed, the nature and extent of the work performed, and any
qualifications or limitations in scope.
2401.2.2 The audit report should include a summary of the work performed, which will help the intended
users of the report to better understand the nature of the assurance provided.
2401.2.3 The audit report should include a section with the opinion of the auditor. In developing an audit
report, practitioners should consider all relevant evidence, regardless of whether it appears to
corroborate or contradict the subject matter information. Opinions should be supported by results
of the control procedures based on identified criteria. Practitioners should conclude whether
sufficient and appropriate evidence has been obtained to support the conclusions in the audit
engagement report.
The report should express an opinion about whether, in all material respects, the design and/or
operation of control procedures in relation to the area of activity were effective.
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2401.2.4 The audit report should include a statement identifying the source of management’s
representation about the effectiveness of control procedures. Also, it should note that the
maintenance of an effective internal control structure, including control procedures for the area of
activity, is the responsibility of management.
2401.2.5 The audit report should include identification of the audit objectives.
2401.2.6 The audit report should include a description of the criteria or disclosure of the source of the
criteria. Furthermore, practitioners should consider disclosing:
Any significant interpretations made in applying the criteria
Measurement methods used when criteria allow a choice among a number of measurement
methods
Changes in the standard measurement methods used
2401.2.7 The audit report should include intended recipients and any restrictions on circulation.
2401.2.8 The audit report should include signatures and locations of the individuals or entities responsible
for the report.
2401.2.9 The audit report should include the date of issuance of the audit engagement report. In most
instances, the date of the report is the issue date. It is recommended that the report mention the
dates when the audit work was performed, if not noted in the summary of the work performed.
2401.2.10 The audit report should mention that distribution (i.e., intended recipients and any restrictions on
circulation) is in accordance with the terms of the audit charter or engagement letter. In some
regions, IT audit and assurance practitioners may be required to disclose their credentials (e.g.,
certificate number and/or membership number from ISACA or other professional organizations).
2401.2.11 The audit report should include observations, findings, conclusions and recommendations with
remediation costs, if determinable. Findings, conclusions and recommendations for corrective
action should include management’s response. For each management response, practitioners
should obtain information on the proposed actions to implement or address reported
recommendations and the planned implementation or action date.
If practitioners and the auditee disagree about a particular recommendation or audit comment,
the engagement communications may state both positions and the reasons for the differences.
The auditee’s written comments may be included as an appendix to the audit report, in the body of
the report or in a cover letter. Executive management or those charged with governance of the IT
audit and assurance function should decide which point of view it supports.
2401.3.1 Events that have a significant impact on the audit subject or activity sometimes occur subsequent
to testing but prior to the audit report issuance date. Such occurrences, referred to as subsequent
events, may require disclosure because they may change an assertion or a conclusion. In
performing an audit engagement, practitioners should consider information about subsequent
events that comes to their attention. However, practitioners have no responsibility to detect
subsequent events.
2401.3.2 Practitioners should obtain written representation from management that no subsequent events
have occurred.
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2401.4.1 Practitioners should discuss the draft report contents with management in the subject area prior
to finalization and release, and include management’s response to findings, conclusions and
recommendations in the final report.
2401.4.2 Practitioners should communicate significant deficiencies and weaknesses in the control
environment to those charged with governance and, where applicable, to the responsible
authority. They should also explicitly disclose in the report that the deficiencies and weaknesses
have been communicated.
2401.4.3 Practitioners should communicate to management any internal control deficiencies that are less
than significant but more than inconsequential. In such cases, practitioners should notify those
charged with governance or the responsible authority that such internal control deficiencies have
been communicated to management.
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COBIT 2019
Governance and
Purpose
Management
Objectives
EDM05 Ensured Ensure that stakeholders are supportive of the I&T strategy and road map, communication to
Stakeholder stakeholders is effective and timely, and the basis for reporting is established to increase
Engagement performance. Identify areas for improvement, and confirm that I&T-related objectives and
strategies are in line with the enterprise’s strategy.
MEA01 Managed Provide transparency of performance and conformance and drive achievement of goals.
Performance and
Conformance
Monitoring
MEA02 Managed Obtain transparency for key stakeholders on the adequacy of the system of internal controls and
System of Internal thus provide trust in operations, confidence in the achievement of enterprise objectives and an
Control adequate understanding of residual risk.
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MEA03 Managed Ensure that the enterprise is compliant with all applicable external requirements.
Compliance With
External Requirements
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
Statements 1402.1 IT audit and assurance practitioners shall monitor and periodically report to those charged
with governance and oversight of the audit function (e.g., the board of directors and/or the audit
committee) management’s progress on findings and recommendations. The reporting should
include a conclusion on whether management has planned and taken appropriate, timely action to
address reported audit findings and recommendations.
1402.2 Progress on the overall status of the implementation of audit findings should be regularly
reported to the audit committee, if one is in place.
1402.3 Where it is determined that the risk related to a finding has been accepted and is greater
than the enterprise’s risk appetite, this risk acceptance should be discussed with senior
management. The acceptance of the risk (particularly failure to resolve the risk) should be
brought to the attention of the audit committee (if one is in place) and/or the board of directors.
2402.1 Introduction The purpose of this guideline is to provide guidance on monitoring whether management has
taken appropriate and timely action on reported recommendations and audit findings. The guideline content section
is structured to provide information on the following key audit and assurance engagement topics:
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2402.2.1 Follow-up activity is a process through which practitioners determine the adequacy, effectiveness and
timeliness of actions taken by management on reported observations and recommendations,
including those made by external auditors and others.
2402.2.2 A follow-up process should be established to help provide reasonable assurance that each review
conducted by practitioners provides optimal benefit to the enterprise by requiring that agreed-on
outcomes arising from reviews are implemented in accordance with management undertakings,
or that executive management recognizes and acknowledges the risk of delaying or not
implementing proposed outcomes and/or recommendations.
2402.3.1 As part of their discussions with the auditee, practitioners should obtain agreement on the results
of the audit engagement and on a plan of action to improve operations, as needed.
2402.3.2 Practitioners should discuss with management the proposed actions to implement or address
reported recommendations and audit comments. Proposed actions should be provided to
practitioners and should be recorded as a management response in the final report with a
committed implementation and/or action date.
2402.3.3 If practitioners and the auditee come to an agreement on the proposed actions, practitioners
should initiate the procedures for follow-up activities.
2402.4.1 Management may decide to accept the risk of not correcting a reported condition because of
cost, complexity of the corrective action or other considerations. The board of directors, or those
charged with governance, should be informed of recommendations for which management
accepts the risk of not correcting the reported situation. Acceptance of risk should be
documented and formally approved by executive management and communicated to those
charged with governance.
2402.4.2 If practitioners believe that the auditee has accepted a level of residual risk that is inappropriate
for the enterprise, they should discuss the matter with IT audit and assurance management and
executive management. If practitioners remain in disagreement with the decision regarding
residual risk, they, along with executive management, should report the matter to the board, or
those charged with governance, for resolution.
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2402.5.2 An automated tracking system or database can assist in carrying out follow-up activities.
2402.5.3 Factors that should be considered in determining appropriate follow-up procedures include:
The importance and impact of the findings and recommendations on the IT environment or IT
application at issue
Any changes in the IT environment that may affect the importance and impact of the findings
and recommendations
The complexity of correcting the reported situation
The time, cost and effort needed to correct the reported situation
The effect if correcting the reported situation should fail
2402.5.4 Responsibility for follow-up actions, reporting and escalation should be defined in the audit
charter.
2402.6.1 Decisions on the timing of follow-up activities should take into account the significance of the
reported findings and the effect on enterprise strategy and objectives if corrective actions are not
taken. The timing of follow-up activities in relation to the original reporting is a matter of
professional judgment dependent on a number of considerations, such as the nature or
magnitude of associated risk and costs to the enterprise.
2402.6.2 Because they are an integral part of the IT audit process, follow-up activities should be scheduled,
along with the other steps necessary to perform each review. Specific follow-up activities and the
timing of such activities may be influenced by the degree of difficulty, the risk and exposure
involved, the results of the review, the time needed for implementing corrective actions, and other
factors, and may be established in consultation with management.
2402.6.3 Practitioners should follow up on agreed-on outcomes relating to high-risk issues soon after the
due date for action, and may monitor them progressively.
2402.6.4 The implementation of all management responses to different audit engagements may be
followed up on a regular basis (e.g., each quarter) together, even though the implementation dates
committed to by management may be different. Another approach is to follow up on individual
management responses according to the due date agreed on with management.
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2402.7.1 The auditee typically is given a time frame within which to provide details of actions taken to
implement recommendations.
2402.7.2 Management’s response detailing the actions taken should be evaluated, if possible, by the
practitioners who performed the original review. Wherever possible, audit evidence of actions
taken should be obtained.
2402.7.5 A follow-up engagement may have to be scheduled to verify the implementation of critical and/or
important actions.
2402.8.1 Practitioners are responsible for scheduling follow-up activities as part of developing engagement
work schedules. The scheduling of follow-ups should be based on the risk and exposure involved
and on the degree of difficulty and time needed to implement corrective actions.
2402.8.2 There may be instances in which practitioners judge that management’s oral or written response
shows that action already taken is sufficient when weighed against the relative importance of the
engagement observation or recommendation. On such occasions, actual follow-up verification
activities may be performed as part of the next engagement that deals with the relevant system or
issue.
2402.9.1 The most effective way to receive follow-up responses from management is in writing because a
written response helps to reinforce and confirm management’s responsibility for follow-up action
and progress achieved. Also, written responses ensure an accurate record of actions,
responsibilities and current status.
Oral responses may be received and recorded by practitioners and, if possible, approved by
management. Proof of action or implementation of recommendations may be provided with the
response.
2402.9.2 Practitioners should request and/or receive periodic updates from management responsible for
implementing agreed-on actions to evaluate the progress management has made, particularly in
relation to high-risk issues and corrective actions with long lead times.
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2402.10.1 Depending on the scope and terms of the audit engagement and in accordance with the relevant
IT auditing standards, external practitioners may rely on internal practitioners to follow-up on their
agreed-on recommendations. Responsibilities regarding follow-up can be determined in the audit
charter or engagement letters.
2402.11.1 A report on the status of agreed-on corrective actions arising from audit engagement reports,
including agreed-on recommendations not implemented, should be presented to the appropriate
level of management and to those charged with governance (e.g., the audit committee).
2402.11.2 If, during a subsequent audit engagement, practitioners find that corrective action that
management reported as “implemented” in fact has not been implemented, the practitioners
should communicate the status to the appropriate level of management and those charged with
governance. If appropriate, the practitioners should obtain a current corrective action plan and
planned implementation date.
2402.11.3 When all the agreed-on corrective actions have been implemented, a report detailing all the
implemented and/or completed actions can be forwarded to executive management and those
charged with governance.
COBIT 2019
Governance and
Purpose
Management
Objectives
EDM01 Ensured Provide a consistent approach integrated and aligned with the enterprise governance approach.
Governance I&T-related decisions are made in line with the enterprise’s strategies and objectives and desired
Framework Setting and value is realized. To that end, ensure that I&T-related processes are overseen effectively and
Maintenance transparently; compliance with legal, contractual and regulatory requirements is confirmed; and
the governance requirements for board members are met.
EDM02 Ensured Secure optimal value from I&T-enabled initiatives, services and assets; cost-efficient delivery of
Benefits Delivery solutions and services; and a reliable and accurate picture of costs and likely benefits so that
business needs are supported effectively and efficiently.
EDM03 Ensured Risk Ensure that I&T-related enterprise risk does not exceed the enterprise’s risk appetite and risk
Optimization tolerance, the impact of I&T risk to enterprise value is identified and managed, and the potential
for compliance failures is minimized.
MEA03 Managed Ensure that the enterprise is compliant with all applicable external requirements.
Compliance With
External Requirements
MEA04 Managed Enable the organization to design and develop efficient and effective assurance initiatives,
Assurance providing guidance on planning, scoping, executing and following up on assurance reviews, using
a road map based on well-accepted assurance approaches.
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1003 Auditor No standard related to Standard 1003 Guideline 2003 Audit Objectivity
Objectivity
1005 Due No standard related to Standard 1005 Guideline 2005 Due Professional
Professional Care
Care
1201 Risk No standard related to Standard 1201 Guideline 2201 Risk Assessment in
Assessment in Planning
Planning
1202 Audit No standard related to Standard 1202 Guideline 2202 Audit Scheduling
Scheduling
1204 Standard 1005 Due Professional Care Guideline 2204 Performance and
Performance and Standard 1205 Evidence Supervision
Supervision Guideline 2201 Risk Assessment in
Standard 1401 Reporting
Planning
1206 Using the No standard related to Standard 1206 Guideline 2206 Using the Work of
Work of Other Other Experts
Experts
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Other expert—Internal or external to an enterprise, Scope Notes: Risk assessments are used to identify those
other expert could refer to: items or areas that present the highest risk, vulnerability
• An IT auditor from an external firm or exposure to the enterprise for inclusion in the IS annual
• A management consultant audit plan. Risk assessments are also used to manage the
• An expert in the area of the engagement who has project delivery and project benefit risk.
been appointed by top management or by the team
S
P Significant deficiency—A deficiency or a combination
Professional competence—Proven level of ability, of deficiencies, in internal control, that is less severe than
often linked to qualifications issued by relevant a material weakness, yet important enough to merit
professional bodies and compliance with their codes of attention by those responsible for oversight.
practice and standards.
Scope Notes: A material weakness is a significant
Professional judgement—The application of relevant deficiency or a combination of significant deficiencies
knowledge and experience in making informed decisions that results in more than a remote likelihood of an
about the courses of action that are appropriate in the undesirable event(s) not being prevented or detected.
circumstances of the IS audit and assurance engagement
Subject matter—The specific information subject to
Professional skepticism—An attitude that includes a an IS auditor’s report and related procedures, which
questioning mind and a critical assessment of audit can include things such as the design or operation of
evidence. internal controls and compliance with privacy practices
or standards or specified laws and regulations
Scope Notes: Source: American Institute of Certified
(area of activity).
Public Accountants (AICPA) AU 230.07
Substantive testing—Obtaining audit evidence on the
R completeness, accuracy or existence of activities or
transactions during the audit period.
Reasonable assurance—A level of comfort short of a
guarantee, but considered adequate given the costs of Sufficient evidence—The measure of the quantity of
the control and the likely benefits achieved. audit evidence; supports all material questions to the
audit objective and scope. Scope Notes: See evidence
Relevant information—Relating to controls, tells the
evaluator something meaningful about the operation of Sufficient information—Information is sufficient
the underlying controls or control component. when evaluators have gathered enough of it to form a
Information that directly confirms the operation of reasonable conclusion. For information to be
controls is most relevant. Information that relates sufficient, however, it must first be suitable.
indirectly to the operation of controls can also be relevant,
Scope Notes: Refer to COBIT 2019 information
but is less relevant than direct information.
quality goals
Scope Notes: Refer to COBIT 2019 information quality
Suitable information—Relevant (i.e., fit for its
goals
intended purpose), reliable (i.e., accurate, verifiable
Reliable information—Information that is accurate, and from an objective source) and timely (i.e.,
verifiable and from an objective source. produced and used in an appropriate time frame)
information.
Scope Notes: Refer to COBIT 2019 information quality
goals Scope Notes: Refer to COBIT 2019 information quality
goals
Representation—A signed or oral statement issued by
management to professionals, where management
declares that a current or future fact (e.g., process,
T
system, procedure, policy) is or will be in a certain Threat—Anything (e.g., object, substance, human)
state, to the best of management’s knowledge. that is capable of acting against an asset in a manner
that can result in harm.
Residual risk—The remaining risk after management
has implemented a risk response. Scope Notes: A potential cause of an unwanted
incident (ISO/IEC 13335)
Risk assessment—A process used to identify and
evaluate risk and its potential effects.
IT Audit Framework (ITAFTM): A Professional Practices Framework for IT Audit, 4th Edition 105
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106 IT Audit Framework (ITAFTM): A Professional Practices Framework for IT Audit, 4th Edition
ISACA. All Rights Reserved.
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