Having a research topic: $$Design of a Model for Augmenting Digital Forensics into Information System Audit in the Financial Sector$$

And the research findings as follow: $$The Information Systems audit process typically consists of three main phases: Planning, Fieldwork, and Reporting. In the context of these phases, the primary focus is on assessing controls, compliance, and risks within the information systems following the risk$-$based approach. Additionally, frameworks and standards used in Information Systems auditing primarily focus on assessing controls, ensuring compliance with regulations and policies, and managing risks within information systems. They emphasize the overall governance, security, and efficiency of IT processes rather than the detailed forensic analysis associated with digital forensics. Common frameworks include COBIT $($Control Objectives for Information and Related Technologies$)$ for governance and risk management, ISO$/$IEC $27001$ for information security management, and ITIL $($Information Technology Infrastructure Library$)$ for IT service management. These frameworks aim to ensure the confidentiality, integrity, and availability of information systems.

The evidence$-$gathering techniques employed by IS auditors, such as inspection, observation, inquiry, confirmation, recalculation, re$-$performance, and analytical reviews, may have limitations in ensuring the validity of collected evidence. These methods are susceptible to potential human error, subjective interpretations, and may not fully capture the dynamic nature of digital environments. The reliance on manual processes and human judgment introduces the risk of inaccuracies, while the static nature of some techniques may not adequately address real$-$time changes or deliberate manipulations in information systems. To bolster the reliability of evidence, IS auditors may need to consider additional measures, such as digital forensics, which employs specialized tools and methodologies to enhance the integrity and authenticity of digital evidence in a more comprehensive and secure manner.

During the process of conducting an Information Systems $($IS$)$ audit, insider threats, originating from individuals with authorized access within an organization, can significantly impact the evidence collected. The unique challenge posed by insider threats lies in their potential to manipulate or compromise the integrity of digital evidence. Employees with malicious intent may intentionally distort or conceal information, making it difficult for auditors to rely on the accuracy of the collected data. Moreover, insider threats may exploit their knowledge of organizational systems to circumvent traditional audit controls, hindering the detection of unauthorized activities. The psychological aspect of insider threats further complicates evidence collection, as malicious insiders may employ subtle tactics that are not easily discernible through conventional audit methods. Addressing the impact of insider threats on evidence integrity requires the implementation of advanced techniques such as behavioral analysis and the integration of digital forensics to ensure a more robust and resilient IS audit process.

IS auditing encounters challenges in tracing and identifying E$-$Channel fraud risks in the financial sector for several reasons. The rapidly evolving nature of cyber threats, including phishing and malware attacks, often outpaces the capabilities of traditional auditing measures. The cross$-$border nature of financial transactions introduces complexities in enforcing consistent regulations globally. The sheer volume and speed of electronic transactions can overwhelm auditing systems, leading to potential oversight of fraudulent activities. Insider threats, where employees exploit their knowledge, present difficulties in detection. The use of encrypted communication in E$-$Channels adds a layer of complexity, making it challenging to inspect and trace fraudulent actions effectively. Industrial experience highlights the need for advanced auditing techniques, international collaboration, and ongoing vigilance to effectively address the intricate challenges posed by E$-$Channel fraud risks in the financial sector.

Critical Phases in IS Audit

The fieldwork phase in IS auditing is widely regarded as the most critical stage in the audit process due to its central role in assessing the effectiveness of information systems controls. During this phase, auditors engage directly with the organization's IT environment, gathering real$-$time evidence on the implementation and functionality of security measures. The significance of fieldwork lies in its ability to provide an accurate and comprehensive understanding of the organization's information systems, enabling auditors to identify vulnerabilities, weaknesses, and potential risks. This phase allows for the verification of controls in operation, ensuring that they align with organizational policies and regulatory requ