Information Systems Audit and Control Association

Information Systems (IS) Auditing Procedure: Irregularities and Illegal Acts Standard P7, section 3.2.4, details provisions of an effective internal control system. The standard states that the “IS Auditor should be aware that management can override controls and this may facilitate fraud by senior management.”

Audit Considerations for Irregularities Standard G9, section 1.2.1, establishes the potential guidelines with regards to irregularities. The standard states that, ultimately, fraudulent activities depend on the definition of fraud in the jurisdiction of the audit. However, nonfraudulent irregularities may include the following: