Friday, January 21, 2005

Technology - crossed wires trigger IT failure

Audit committees and IT departments are failing to communicate effectively, according to a new report from Ernst & Young, seriously undermining risk-management capabilities.

A communication gap between audit committees and IT departments in the UK could threaten the ability of business to manage risk effectively, according to a new report by Ernst & Young.

The survey of heads of internal audit and CIOs, found that only 28% of CIOs thought their audit committee was sufficiently aware of IT risks, and just 34% felt the committee spent enough time discussing the subject.

Erol Mustafa, head of internal audit services at Ernst & Young, said: 'Today the audit committee must be prepared to, not only discuss, but robustly challenge the IT-related threats and risks facing their business.'

Accuracy and security of data have become vital for businesses as they deal with new international financial reporting standards and face up to internal controls requirements, plus tough new regulation in the form of Sarbanes-Oxley.

Technology - crossed wires trigger IT failure

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