Which of the following is a benefit of requiring management to issue a report to stakeholders regarding the internal controls over IT?
Click on the arrows to vote for the correct answer
A. B. C. D.D.
The correct answer is D. Focus on IT governance.
Requiring management to issue a report to stakeholders regarding the internal controls over IT is a critical component of IT governance. This report is commonly referred to as the Management Assertion on Internal Controls. This report confirms that the company's internal controls over IT are in place and functioning correctly.
The benefits of requiring management to issue a report to stakeholders regarding the internal controls over IT include:
Focus on IT governance: This report provides a focus on IT governance by confirming that internal controls are in place and functioning correctly. IT governance is crucial to ensure that IT is aligned with the organization's objectives, delivers value, manages risk, and uses resources responsibly.
Transparency: The report provides transparency to stakeholders about the effectiveness of the company's internal controls over IT. This transparency can improve stakeholders' confidence in the company's ability to manage IT risks.
Improved risk management: The report can help identify areas of weakness in the company's internal controls over IT, allowing for improvements to be made to reduce the risk of IT-related incidents.
Enhanced decision making: The report can help stakeholders make more informed decisions by providing information on the effectiveness of the company's internal controls over IT.
In summary, requiring management to issue a report to stakeholders regarding the internal controls over IT can improve IT governance, provide transparency to stakeholders, improve risk management, and enhance decision-making capabilities.