SESSION GOAL:  After completing this unit, you should understand how the use of technology influences business risks and be able identify specific risks associated with the use of a technology solution.  As you read the following articles, think about organizations you have been involved with and how their use of technology affects the business risks they face.  You should also begin thinking about how those risks can be mitigated through the use of internal controls.

• Read selected sections of The Current Impact of Information Technology on Internal Audit Departments, a report by Deloitte & Touche LLP for the Institute of Internal Auditors Research Foundation.
  • Executive Summary
  • Section 1 - Organization Use of Technology (skim this section)
  • Section 2 - Auditing New Technology
• Read Lanza, Technology Projects: The Riskiest Parts of the Business, IT Audit Forum, May 15, 2002. Printer-friendly version here.
• Read Marchany, Seven-Step IT Risk Assessment, IT Audit Forum, March 1, 2002
• Read E&Y's IT Risk Brochure

  Read Hall, New Areas for Your Risk Management Program, IT Audit Forum, March 1, 2001
• Read Hall, Additional Areas for Risk Management to be Concerned About, IT Audit Forum, April 15, 2001
• Now let's look at a specific example.  Read the following article (in the COURSE MATERIAL section of Blackboard) about how Ford and GM have implemented technology and think about business-related information system risks that arise as a result. Identify the IS risks that are associated with business or organizational use of these information technology. To get started, imagine how each organization uses information technology in its affairs and think of the consequences of the organization being abruptly without the use of its information systems.

  • White, G. L. 1999. "How GM, Ford think Web can make splash on the factory floor." The Wall Street Journal (December 3): A1
  • Compare your assessment of the IS risks with the suggested solution (in the COURSE MATERIAL section of Blackboard) from an IS audit class at Georgia State University.  DO THIS AFTER YOUR HAVE GIVEN IT SOME THOUGHT OF YOUR OWN!
    
    

• Here are some other resources you might find interesting:

• Ernst & Young's Annual Information Security Survey - 2002
• The AIPCA's Report of the Special Committee on Assurance Services section on Effect of Information Technology on the Assurance Services Marketplace, and Applications and Influences on Organizations.

• Login to the CHATROOM and participate in the online discussion.