How Information Technologies Enhance Internal Control

In this video they are talking about the internal audit and how the auditors works with the big
data to provide their users. To better risk management and operating goals KPMG follows some
effective information for data providers. Improving operation efficiency and effectiveness,
abiding law, and making financial reports reliable, are three objectives of internal control. In
order to investigate the impacts of information technology on these objectives of internal control
that higher level of information technology leads to higher organizational operation efficiency
and effectiveness and better performance in abiding law. However, the impact of information
technology on financial reports' reliability is not significant as expected. By recognizing the
importance of emerging environment and requirement to perform audit task effectively, auditors
must recognize the key reasons to use audit tools and software, which will be further explored, in
later section. The key reasons include: (i) on a personal level, learn a new skill. (ii) improve
company decision-making using improved data. (iii) increase the efficiency of an audit. (iv)
reduce routine tasks to provide more time for creative and business analysis. (v) provide
improved transparency governance of the organization. (vi) identify quantitative root causes for
issues. (vii) Reduce fraud and abuse. (viii) identify savings in supplier, customer, human
resource, computer, and enterprise management. This types of risk reduces to the organization
assessment and their internal audit teams to bring such official areas. Such cyber security where
internal audit can perform top down assessment which can help prevent data costly .that can lead
to investigated, fines, reputational damages and loss of customers and business global regularity
compliance where the organization excess the effectiveness and cost. So the KPMG follow the
rules to doing big data for internal audits.