preview

IT Corporate Governance

Best Essays
Corporate governance is the responsibility of an organization’s board of directors (BOD). The internal auditor (IA), the external auditor (EA), and the information technology (IT) auditor all play important roles in the process of corporate governance. By using established frameworks established by the Sarbanes-Oxley Act (SOX), the Integrated Framework from the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and the Control Objectives for Information and related Technology (COBIT), organizations can demonstrate their adherence to regulations and legal requirements. Under SOX, these control frameworks have become the law and are no longer voluntary best practices. The audit process itself assists organizations to achieve proper governance. This paper evaluates the auditors’ role in the governance process and explains how auditors ensure that an organization’s governance system is well controlled and auditable. This paper also describes the likely consequences of the improper implementation of good governance.

IT Governance and Control
An organizations’ Board of Directors (BOD) has the direct responsibility for ensuring good corporate governance. One definition of corporate governance is the method of control in businesses in their direction and control (Florea, R. (Radu) & Florea, R. (Ramona), 2013). The Sarbanes-Oxley Act, 2002 (SOX), focuses on the enhancement of corporate governance through improved internal checks and balances. These checks and balances are to strengthen the accountabilities of those responsible for its management (Damianides, 2005). Good corporate governance may improve a company’s performance by assisting the BOD to discharge its legal requirements and its fiduc...

... middle of paper ...

...docview/214122540?accountid=28180
Florea, R., & Florea, R. (2013). Internal Audit and Corporate Governance. Economy Transdisciplinarity Cognition, 16(1), 79-83.
Holm, C., & Laursen, P. (2007). Risk and Control Developments in Corporate Governance: changing the role of the external auditor? Corporate Governance: An International Review, 15(2), 322-333. doi:10.1111/j.1467-8683.2007.00563.x
Millage, A. (2013). The red book on good governance. Internal Auditor, 70(2), 7.
Schneider, A. (2009). The nature, impact and facilitation of external auditor reliance on internal auditing. Academy of Accounting and Financial Studies Journal, 13(4), 41-53. Retrieved from http://search.proquest.com.proxy1.ncu.edu/docview/213973798?accountid=28180
Senft, S., Gallegos, F., & Davis, A. (2013). Information technology control and audit. (4th ed.). Boca Raton, FL. Auerbach Publications.
Get Access