The quality of system-generated information affects management’s ability to make appropriate decisions in managing and controlling the entity’s activities and to prepare reliable financial reports.
Technology is often the most important enabler of business processes and could help to enhance the credibility of the information in the financial reports. Emphasizing on technology based business information of the companies, speakers said this at a seminar on ‘Conducting Audit in an Automated Environment’ organized by the Institute of Chartered Accountants of Bangladesh at its auditorium on Wednesday.
Md. Lukman Chowdhury, Member, Audit, Intelligence and Investigation, National Board of Revenue (NBR) was present as chief guest. Muhammed Farhad Hussain FCA, Member Council & Past President-ICAB conducted the seminar as session chairman while Showkat Hossain FCA, President- ICAB delivered the welcome speech.
Sabbir Ahmed FCA, Hoda Vasi Chowdhury & Co, Chartered Accountants presented the Key-note Paper in the seminar.
ICAB President Showkat Hossain FCA said that to ensure quality audit as well as to avoid the fraudulent financial reporting practice, the auditors should be technical expertise as well as skilled in using Information Technology.
ICAB is very much concerned to ensure transparency in accounting and auditing system, he said adding that the Institute is trying its level best to accelerate government revenue by reducing cost and time involved in assessment process.
However, the president said, poor management of technology can lead to any financial fraud. So, conducting audit in an automated environment and prepared with skills of information technologies became vital to compile information in effective manner which could ensure transparency in the financial reporting and auditing, he added.
The output of end-user computing processes frequently appears as an authoritative document that will be relied on by management in financial reporting, the keynote speaker Sabbir Ahmed pointed out in his paper and suggested that IT based information could reduce the complexities regarding legal, compliance, regulatory, operational and public relations, etc that cause erosion of customers, market share and revenue.
Technology changed the way of auditing; increasingly the manual evidence of information is no longer exists. Where audit evidence is solely electronic, it requires acquiring specialized knowledge and techniques about the process and it is much important for reducing the audit risk, he writes in the paper.
Management should have appropriate controls over technology so that all critical data, transactions and programs are backed up on a defined schedule and that the backups are complete, accurate and can be recovered if needed, the he emphasized in the paper.