The Evolution of it Governance Auditing within Emerging Technology-Driven Corporate Structures

Michail G. Bekiaris*, Konstadinos Kutsikos**
* Lecturer of Accounting, Deportment of Business Adminisfrotion, Business School, Universlty of theAegeon, 8 Micholon st., Chios 82100, Greece
**Lecturer of Informotion Systems, Deportment of Business Adminisirofion, Business School, Universify of the Aegeon, 8 Michoion st., Chios 82100, Greece
Periodicity:September - November'2007
DOI : https://doi.org/10.26634/jmgt.2.2.343

Abstract

Financial reporting processes in modern business environments are increasingly driven by IT systems. IT Governance (ITG) aims to enforce control on such systems as they relate to overall financial reporting compliance requirements and guidelines. Traditionally, there has been a clear ‘chain of command’ with regards to ITG auditing: IT Governance guidelines and procedures drive Boards of Directors to establish compliance structures, who in turn put pressure on auditors to assess risks and reports on them. Successful operation of this chain is based on monolithic corporate structures which help auditors execute their tasks in a centralized, concentrated manner.
However, corporations are exploring ways of moving away from vertical integration, especially now that technological innovations remove operational barriers. This paper discusses about the link between emerging technology-driven corporate structures and auditing. After explaining basic terms and definitions of Corporate and IT Governance, the current landscape of ITG auditing is briefly described, in terms of designing and evaluating internal control procedures. This paper also focuses on business webs (b-webs), a distributed corporate structure based on Internet technologies, and its details and presented through B-web Transformation Model. Finally, the effects on IT Governance and the auditors’ role and tasks caused by the adoption of b-webs by corporations is analyzed and discussed. This discussion is driven by a new auditing framework that aims to track changes to auditing parameters and requirements as an organization evolves within the B-web Transformation Model.

Keywords

Business Webs, Financial Reporting, IT Governance.

How to Cite this Article?

Michail G. Bekiaris and Konstandinos Kutsikos (2007). The Evolution of IT Governance Auditing Within Emerging Technology-driven Corporate Structures. i-manager’s Journal on Management, 2(2), 6-14. https://doi.org/10.26634/jmgt.2.2.343

References

[1]. Boritz, J.E., 2005, "IS practitioners' views on core concepts of information integrity", Internatlonal Journal of Accounting Information Systems, (6) 260-279
[2]. Dey Report, 1994, "Where were the Directors?", Dey Committee,TorontoStockExchange
[3]. ITGl and PriceWaterhouseCoopers, 2006, "IT Governance Global Status Report' ', Information Technology Governance Institute and Price Waterhouse Coopers
[4]. ITGl, 2006, "Serving IT Governance Professionals, Survey Results 2005", Information Technology Governancelnstifute
[5]. TGI, 2006b, "IT Control Objectives for Sarbanes-Oxley, 2 Edition" , InformationTechnology Governance Institute
[6]. Fama E. and M. Jensen, 1983, "Separation of Ownership and Control", Journal of Law & Economlcs, (26) 30 I -325
[7]. Moulfon, R. and R.S. Coles, 2003, "Applying information security governance" , Computers & Security Vol 22, No 7
[8]. Pathak, J., 8. Chaouch and R.S. Sriram, 2005, "Minimizing cost of continuous audit: Counting and time dependent strategies", Journal of Account\ng and Public Policy, (24) 6 I 75
[9]. PricewaterhouseCoopers, 2001, "Global Data Management Survey '.
[ I0]. Ramos, D. , 2001 , "The auditor's role in IT Governance", Information Technology Governance Institute
[1 I ]. Schwarz, A~ and R. Hirschheim, 2003, "An extended platform logic perspective of IT governance: managing perceptions and activities of IT", Journal of Strategic Informatlon Systems, (12) 129-166
[12]. Shleifer, A. and R.W Vishny, 1997, "A survey of Corporate Governance", The Journal of F\nance, (52) 737-783
[13]. Sohal, A.S. and R Fitzpatrick, 2002, "IT governance and management in large Australian organizations", Inf. J. Productlon Economlcs, (75) 97- I 1 2
[14]. Tapscott, D., 2004, "E-government in the 21 Century", Executive Series Reporf, New Paradigm Learning Corporation, Ontario, Canada
[ I 5]. Trites, G . , 2004, "Director responsibility for IT Governance", International Journal of Accountlng Information Systems, IS) 89-99
[16]. Van Grembergen W. and, S. De Hoes, 2004, "IT Governance and ifs mechanisms", Information TechnologyGovernancelnstitute.
If you have access to this article please login to view the article or kindly login to purchase the article

Purchase Instant Access

Single Article

North Americas,UK,
Middle East,Europe
India Rest of world
USD EUR INR USD-ROW
Online 15 15

Options for accessing this content:
  • If you would like institutional access to this content, please recommend the title to your librarian.
    Library Recommendation Form
  • If you already have i-manager's user account: Login above and proceed to purchase the article.
  • New Users: Please register, then proceed to purchase the article.