Page 32 - Quick Insights Book 2022

Chap. 6 – Information Technology

Deliverable System Development Review
Data analytics, through use of data analysis tools can be Involves a review of the development of a new application
employed effectively in areas of fraud detection and forensic system. This involves an evaluation of the development process
accounting, tax and compliance consulting, improvements as well as the product. Consideration is also given to the
in billing and cost management or business operations, risk general controls over a new application, particularly if a new
identification and providing risk management insights/advice, operating environment or technical platform will be used.
identifying revenue leakage, real time monitoring of controls,
using predictive models to improve forecasting, Integrated or SYSTEM DEVELOPMENT LIFE CYCLE: FULL
sustainability reporting, etc. IMPLEMENTATION CONSULTATION
Chartered Accountants are well equipped to realise this As technology has evolved organizations have started
opportunity. adopting new technologies. Many organizations have taken
to implementing new systems, adopting new technologies,
ROBOTIC PROCESS AUTOMATION creating centralized systems for data processing. Systems
implementation need to Chartered Accountants, acting as
Robotic Process Automation (RPA) combines artificial Domain Experts/Consultants, can monetize this opportunity.
intelligence, including machine learning and machine vision, Chartered Accountants, with knack for systems added with
with automation. Robotic Process Automation is not a physical post qualification courses of ICAI including DISA, and other
robot sitting at a desk performing tasks. Since RPA has great certificate courses on new technology, are best placed to benefit
potential to transform the audit profession and change the role from this nascent opportunity.
of the auditor by replacing perfunctory tasks and emphasizing
higher order thinking skills, it is paramount to have a plan of
action that will ensure a smooth transition. Deliverable by Chartered Accountants
- System developed and put to use is properly developed,
In essence, the role of the auditor would be repurposed and
changed from being a data collector, processor, analyser, and tested, documented and complies with Governance,
disseminator to primarily emphasizing the evaluation component Risk and Compliance as applicable to entity.
of audit procedures. Detailed discussion on Governance, Risk and
Compliance under “Opportunities Under Companies
ICAI has issued a concept paper on RPA and link is given
below: Act, 2013”, section of this document.
- Chartered Accountants engagements with banks and
Information Systems (Is) Audit non-banking finance companies is very high. This
interaction covers whole gamut of banks, including public
There are three basic kinds of IS Audits that may be performed:
sector banks, reginal rural banks, district co-operative
banks, urban cooperative banks etc., plus all categories
General Controls Review
of non-banking finance companies.
This is a review of the controls which govern the development, Chartered Accountants, with their understanding of banking
operation, maintenance, and security of application systems operations, RBI regulations and other regulations applicable to
in a particular environment. This type of audit might involve banking sector, are best placed to offer full scale consultation
reviewing a data centre, an operating system, a security for deployment of core banking systems by banks and non-
software tool, or processes and procedures (such as the banking finance companies.
procedure for controlling production program changes), etc.
SYSTEM DEVELOPMENT LIFE CYCLE:
Application Controls Review CONSULTATION AT VARIOUS STAGES
This is a review of controls for a specific application system. Chartered Accountants, to start consultation on system
This would involve an examination of the controls over development life cycle, can take baby steps to provide services
the input, processing, and output of system data. Data at various stages of development. Once through they can take
communications issues, program and data security, system up bigger engagement as discussed in previous section.
change control, and data quality issues are also considered.

Quick Insights on Professional Opportunities for Chartered Accountants 19