THE BENEFITS OF COMPUTER AUDIT

In today's fast changing world, computer audit is very important. Hereunder are the benefits of computer audit:

Business efficiency – companies are required by company law to safeguard assets by instituting effective internal controls. Computer audit would not only meet this requirement but would give you the facts you need to make important decisions.

Security – computer audit would reinforce your company’s attitude to risk. Thousand of pounds are invested in computers (PCs, workstations, laptops, scanners, etc) it pays to be prudent by mitigating loss, whether by theft, fire or otherwise.

The fact that your company has a computer audit policy and that it is taken seriously acts as a deterrent. This is further reinforced when security measures, such as “electronic tagging”, bar coding, permanent fixing or similar measures are employed.

Having documented records of your computer assets aid your claim for loss under your company’s insurance policy. The existence of reliable records aids the process.

Standardisation – a computer audit promotes a standardised purchasing policy. What could be more practical than applying a purchasing policy that not only saves money but also reinforces values, such as brand, efficiency and time?

Don’t assume that all computer equipment comes with quality parts and that they are subject to the same quality control standards. Likewise, not all retailers give the same guarantee! This is where a computer audit could provide valuable information.

Asset tracking – at the point where computer equipment arrives in the company they should be tagged to aid tracking, accounting and ultimately, control against loss. If these assets are not tracked or traceable, they could easily disappear from the company. A computer audit would capture all computing equipment, whether they are included on the asset register or not.

Asset replacement policy – computer audit assists your replacement policy by identifying ageing assets that present potential operational risk to your business. Your accounting policy may provide for non-capitalisation or write off over two to four years, however computers will be used until they are incapable of being sustained.

Such a policy does not help your company in maximising efficiency and productivity. This plays into your competitor’s hands, surrendering to them your competitive advantage. If your business relies on latest technology, it’s imperative that obsolete computers are systematically identified and replaced.

Accounting – computer audit will ensure the completeness of your fixed asset register and the accounting transactions that are processed in your ledgers.

Cost control – computer audit aids the budgeting and timely replacement of computer equipment. It reduces substantially the guesswork in constructing the relevant capital expenditure budget.

Competitive advantage – whether being the quickest to market, having the latest technology or efficient processes is what sets you apart from your competitors it is essential that you make computer audit an essential company tool. Factors that contribute to maintaining competitive advantage cannot be ignored and a Finance Director or IT Manager would be grossly negligent in failing to have answers on this important matter.

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