Integrating IT Cost Management Controls into 
Regularly Scheduled IT Audits 


By: Mitchell H. Levine

 

During the economic downturn companies have attempted to stabilize earnings by reducing expenses. This necessitated drastic reduction in IT spending which brought about the establishment of IT Cost Management Audits in many organizations.

Standalone IT Cost management audits can be performed of Software Development groups and Data Centers/Infrastructure Groups. However, the importance of assessing the IT Cost Management controls requires that it be embedded in all types of IS Audits performed by your organization. In some cases certain IT Cost Management audits need to be performed of a specific department such as the handling of corporate site and
volume licensing discounts.

The following are the IT Cost Management components which should be included in various types of IS audits:


Application Audits

Application 3rd Party Licensing
Data Feed Utilization
Subscriber Service Utilization
Cost Allocation Approaches 
Budget, forecasted, budget/actual reconcilements
3rd Party Vendor Software Development


Pre-Implementation Audits

License Management (based on type of software used)
Data Feed Utilization
3rd Party Vendor Software Development


Post-Implementation Audits

License Management (based on type of software used)
Data Feed Utilization
3rd Party Vendor Software Development


Integrated Audit

Budget, forecasted, budget/actual reconcilements
Proper Categorization of expenses (i.e., CAPEx approach) 


SDLC

Proper Categorization of expenses (i.e., CAPEx approach) 
3rd Party Vendor Software Development


Data Center & Infrastructure Audit 

License Management (based on type of software used)
Cost Allocation Approaches
Subscriber Service Utilization (if centralized and responsibility in this area)
Budget, forecasted, budget/actual reconcilements
Proper Categorization of expenses (i.e., CAPEx approach) 
Hardware Purchasing Procurement


Network & Internet Audit

Subscriber Service Utilization (if centralized and responsibility in this area)
Cost Allocation Approaches
Budget, forecasted, budget/actual reconcilements
Proper Categorization of expenses (i.e., CAPEx approach) 
Voice & Data line management
Hardware Purchasing Procurement



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