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Statutory Audits, Information Security and the Digital Divide - Research Paper Example

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This paper examines the role of information security professionals in controlling risks in a period of fast IT growth and the role of corporate governance and statutory audit in ensuring that those systems are working. The research involves a critical literature review…
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Statutory Audits, Information Security and the Digital Divide
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Download file to see previous pages The main stakeholders of information security matters include information security managers, IT managers, other managers and end-users in the organization. The narrowing of the digital divide and the increase in computer users has transformed more ordinary users of communication systems to mass communicators (Lacey, 2009, p. 5). Due to this, information can be easily misused and important ethics breached with little restriction. Thus, there is a need for controls and ethics to reduce challenges to information security. Most businesses attain information security through the institution of controls.

Corporate governance rules require that the people running organizations, viz. the board of directors and top managers, institute controls and ensure they are working (Nnolim, 2007, p. 69). Information security is one of the core controls that managers need to employ. As a requirement by law, public companies need to appoint external auditors to undertake a thorough audit of the systems, operations and financial transactions of business and pass an opinion on the truth and fairness of the accounts and systems (Millichamp, 2011, p. 2). Most private companies are required to conduct external audits by important stakeholders such as banks. Information security falls under the core areas of statutory or external audits. This is governed by the Generally Accepted Accountancy Practice (GAAP) rules of the American Institute of Certified Public Accountants.
Apparently, there is a strong connection between information security, increment in information security risks which comes with the bridging of the digital divide, corporate governance, and statutory audit. 

This section will define the core concepts that are being reviewed in this study. This will set the framework for further analysis of the interconnectedness of the different concepts and how they work together to support organizations to keep running. ...Download file to see next pages Read More
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