The document discusses the changes in the bank audit environment due to the widespread adoption of information technology. Key aspects that auditors must now consider include evaluating IT security controls, assessing the impact of IT systems on internal controls and the audit process, and using computer-assisted audit techniques. Auditors must upgrade their skills to understand IT systems and appraise the associated risks in order to effectively discharge their duties in the new IT-enabled audit environment.

2. During the past few years Information Technology has made rapid inroads into our lives in a way we could ever imagine.

3. Mom, When is my Happy Download Day?

4. How many times have I told you! You were not downloaded. You were born…

5. we are currently developing an insatiable appetite for instant information made possible by Information Technology. Information Technology has completely changed the way, we lead our lives.

7. The wide spread use and ongoing development of Information Technology has affected business immeasurably. And that is the reason; the audit environment has also undergone a chemical change.

12. The basic tenet of Audit remains the same-i.e. reliability and integrity of data. Use of IT does not give rise to new audit objectives nor does it change the same. But the role, focus and scope of audit has certainly changed in the changed environment .

22. Arithmetic accuracy and uniform processing of transactions that reduces the audit risk as there is no need to maintain and verify balancing ledgers and no need to verify postings if there is a fool proof computer system. Further, the system calculates interest automatically and chances of error are limited. The clerical errors ordinarily associated with manual processing are virtually eliminated. Advantages over manual system

24. After the AAS 29 on Auditing in a Computerised Information Systems (CIS) environment became operative for all audits related to accounting periods beginning on or after 1st April 2003, the responsibility of the bank branch auditor has increased manifold. As per AAS 29, the overall objective and scope of an audit does not change in a CIS environment, however, the use of a computer changes the processing, storage, retrieval and communication of financial information and may affect the accounting and internal control systems employed by the entity. AAS 29

29. Networked Domain / Intranet Internal Threats Through : Employees / Vendors/ Ex-Employees etc. Reasons: Sabotage / Revenge/ Money Methods: Virus/ Trojan, Denial of service attack / Trap door/ Spoofing/ Destruction etc INCREASING RISK Environmental / Physical Threats E.g. Fire / Storms/ Earthquake Manual TBA CBS External Threats Through: Hackers/ competitors / criminals etc. Reasons: Sabotage / Revenge/ Money Methods: Virus/ Trojan, Denial of service attack / Trap door/ Spoofing/ Destruction / social engineering etc Information Security Risk in a Bank