You are a manager in the audit department of Huntsman & Co, a firm of Chartered Certified Accountants, responsible for the audit of several companies and for evaluating the acceptance decisions in respect of potential new audit clients. One of your audit clients is Redback Sports Co, which operates a chain of sport and leisure centers across the country. The client invited you into a meeting with the CEO and CFO. According to the CEO of the company “the incessant development of information technology is changing the way their organization works in many ways. The pen and paper of manual transactions have made way for the online data entry of computerized applications; the locks and keys of filing cabinets have been replaced by passwords and identification codes that restrict access to electronic files. The implementation of innovative technology is helping their organizations to improve the efficiency of their business processes and considerably increase their data processing and transmission capacity, but has also introduced new vulnerabilities that need to be controlled”. The CFO was concerned about the new vulnerabilities. He is asking how these vulnerabilities could be controlled You quickly responded by saying that assessing the adequacy of each control requires new methods of auditing. With the increase in the investment and dependence on computerized systems by the company, it has become imperative for audit to change the methodology and approach to audit because of the risks to data integrity, abuse, privacy issues etc. An independent audit is required to provide assurance that adequate measures have been designed and are operated to minimize the exposure to various risks.


Required:
i. The CEO is asking if there is any difference between your regular Audit periodically conducted and an IT Audit. You are required to identify, name, and explain the core differences between your Internal Audits periodically conducted and an IT Audit. 

ii. Explain 5 objectives of an IT Audit to Redback Sports Co. 

iii. Explain 5 benefits that Redback Sports Co. may derive from an effective IT Audit. 

iv. The CFO of Redback Sports Co. is asking that you explain the processes to follow to undertake an effective IT Audit for the company and how long you think it will take them to be ready for your audit. Name and explain the Phases of the Audit Process.