Audit and Assurance

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IT BUDGET APPROVAL

  • 1.  IT BUDGET APPROVAL

    Posted 26 Aug, 2019 05:07
    Hello All,
    in the process of performing an IT Governance Audit Just wanted to confirm if there are any definitive requirements for what qualifies as an "Aproved IT Budget" .
    I am Keeping COBIT5  APO06 Manage Budget and Costs in mind. Are signatures from the board and the CEO or is a simple verification from the CFO as well as the CEO fine.





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    Fiyinfoluwa Bamigbola
    Senior IT Auditor
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  • 2.  RE: IT BUDGET APPROVAL

    Posted 27 Aug, 2019 19:39
    The budget approval is mostly from the decision maker and the top management.
    COBIT 5 says you should cascade enterprise goals > to IT related goals > enterprise goals > shareholder needs (benefits realization, risk optimization, resource optimization).

    From Enterprise point of view, the shareholders elect the board of directors, and the board of directors assign the CEO to run the company.
    So i believe the CEO is the ultimately who is responsible for the IT budget approval.

    BUT, from my experience i also know for yearly budgeting are discussed with the board of directors on yearly basis, where the compare budgets to actual and discuss key decisions to keep the board of directors in loop (or sometimes you require approval of BOD for yearly budget).

    In any case discussion of all budgets for all departments should be also find in the minutes of meetings of BOD.

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    Marat Kaisseov
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  • 3.  RE: IT BUDGET APPROVAL

    Posted 28 Aug, 2019 02:42
    Thanks  a Lot Marat

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    Fiyinfoluwa Bamigbola
    Senior IT Auditor
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