Dalex Microfinance (IT Audit)

Solution Approach

We Approached IT Audit with these activities

Step 1

• Initial meeting with the management of Dalex Finance, to understand Dalex’s business operations and Information Systems (IS) charter or IS Policy document.
• Inspection of the company’s network and hardware infrastructure.

Step 2

1. Prepare the audit approach document detailing the audit approach and methodology to be used for the audit.
2. Meet the head of Fixed Income Loans Department to:

• Discuss their business processes and workflow policies
• Review their present management software system to ascertain whether it meets Dalex Finance’s fixed income loan business processes and workflow policies, sufficient security and internal control measures are properly implemented.
• Understand the various challenges users face by using the present software in terms of user training, system availability, simplicity of the software, response time for updates and accuracy of reports generated from the system.
• How the present systems interfaces with other systems such as the tally accounting being used the finance department and the investment software.
• To ascertain if the present system meets the Bank Of Ghana standards and other industry standards.
• To establish the link between the software and any other third-party system such as the controller and accountant’s generals department payroll system and other payroll systems.
• To establish whether the system is capable of generating credit administration and credit risk reports for management.

Step 3

1. Meet the head of Business Loans Department to:

• Discuss their business processes and workflow policies.
• Review the present software systems being used by the business loans department to ascertain whether it meets the company’s business processes and workflow policies.
• To establish if adequate system security and internal control measures are properly implemented.
• Understand the various challenges users face by using the present software in the performance of their duties.
• To establish the linkage between present business loans software and the tally accounting software being used by the finance department.

Step 4

Meet the head of Investment Department to:

• Discuss the department’s investments business processes and workflow policies.
• Review the present investment software systems being used by the company and to ascertain whether it meets the company’s investment business processes and workflow policies regarding the management of investment portfolio.
• To establish if adequate system security and internal control measures are properly implemented to prevent fraud, errors, etc.
• Understand the various challenges users face by using the present investment software in the performance of their duties.
• To establish the linkage between present investment software and the tally accounting software being used by the finance department.
• To ascertain if the present system meets the Bank Of Ghana standards and other industry standards.
• To establish whether the system is capable of generating the necessary investment reports and other reports such as interest expense and payable on daily basis for the finance department for the preparation of the company’s final accounts.

Meet the head of Finance to:

• Discuss the financial accounting policies with regards to the company’s IS policies
• Review the present accounting software systems being used by the company and to ascertain whether it meets the company’s accounting needs with respect to the preparation of financial statements as and when the need arises.
• To establish if adequate system security and internal control measures are properly implemented to prevent fraud, errors, etc.
• Understand the various challenges users face by using the present accounting software in the discharge of their duties in terms of getting accurate and timely accounting information from other departments.
• To establish the linkage between present accounting software and the other software systems being used by other departments within the company.
• To ascertain if the present system meets the Bank Of Ghana standards and other industry standards for use by financial institutions.
• To establish whether the system is capable of generating all necessary financial accounting reports for management.

Step 5

Prepare final audit report with strategic advice