Background of the Study:
Back in time when computer, internet connection, and technology are not necessities, frauds are easy to conceal. Given also the fact that accounting standards were still not that strict about some disclosures and can be circumvented easily, many people such as accountants, businessmen, and employees took advantage of it. These people may be blinded by their position that they are capable of doing their own dirty tricks. They also have their reasons why they wanted to try to benefit from their institution on themselves. Moreover, they also saw the opportunity in the weakness of the controls in the company so they knew how they will do it and conceal it. These ideas were in a way lessen as the accounting standards were amended due to the detection of numerous cases of accounting scandals at the start of the second millennium. More disclosures are now being asked from the companies in order for them to be transparent in their operations and be aware that the lawmakers are, now, more focus on them. However, even if more disclosures are being required by the accounting standards, some still have the guts to try to attempt in doing frauds. These people still see the opportunity and are still capable of doing it without even being obvious in the audit.
In this era of quick developing technology, the idea of Information Technology (IT) audit is developed. Moreover, many see the need of it to address the time constraint for auditing the information systems of such large companies and to lessen the inherent risk of human error. It is to evaluate the ability of the entity to safeguard its information assets in order to disclose it to authorized people without affecting its confidentiality and integrity.
IT audit serves as a big help for the authorized users of information and also for everyone that is involve in a certain company. It helps of trying to