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When to add the application in scope for GITC?

  • 1.  When to add the application in scope for GITC?

    Posted 09 Feb, 2020 08:26
    Could you please brainstorm with me when to add the application in scope for testing for GITC.
    If the external auditor auditing the financial statements, and they involve the IT specialists.

    In our company we have a simple bookkeeping application, (lets call it application X), and other more complex applications where we calculate more complex accounting stuff, but on a daily basis we input manually the transactions to this simple bookkeeping accounting software X.

    Shall application X be included in scope for testing the GITC or no , while the others application with more complex stuff are included?
    As this application produce the GL finally.

    Please advise.

    Marat Kaisseov

  • 2.  RE: When to add the application in scope for GITC?

    Posted 10 Feb, 2020 01:38
    Hi Marat,

    it depends.....

    1. is the approach of the auditor substantive or control based
    2. if control based are there a lot of application controls or is it manual
    3. in what manner will the auditor rely of the information produced by the system.

    if it is just substantive or if there are a lot of manual controls there is no need to involve it in the ITGC's. But this is just the short answer. There can be a mixture. As an auditor (both financial as IT) i always assess the design (and sometimes the implementation) as a flaw could also present a risk despite the audit approach i use. Based on your case I would not do a lot with the simpel information system, but concentrate on the complex ones. I hope this helps a bit.


    Rene van Oosterhout

    Rene Van Oosterhout
    Senior Manager Audit

  • 3.  RE: When to add the application in scope for GITC?

    Posted 12 Feb, 2020 05:52
    The question was simple.
    I have 2 complex system where I included them in GITC, but one system is just simple with only manual controls and bookkeeping.
    I believe we should add it to GITC because you rely on the trial balance generation and you issue the financial statement. Please advise/

    Marat Kaisseov