Abstract:
Information Technology (IT) is a very much important function in designing,
implementing and directing many controls over the organizations’ business
processes. Currently both internal & external auditing processes are rapidly changing
and one of the main reasons is the changes in IT. This study aims to find the impact
of IT and its implications on Internal Auditing. Further, the study examines the
influence from Objectives and the Organizational Characteristics on the IT
Evaluations performed in Sri Lankan companies. IT Evaluations, Objectives and
Organization Characteristics were used as independent variables and IT Evaluation
categories were used as the dependent variable. This study carried out using a
standard questionnaire which consists of mainly four parts. 100 questionnaires were
distributed to companies representing manufacturing, service, banks and hotel sector
using the cluster sampling method. Data received from 80 respondents representing
all sectors. Data were analyzed using the Statistical Package for Social Science
(SPSS). According to the results of the study, internal auditors mainly focus on
traditional risk such as IT data integrity, asset safeguarding, privacy and security and
less attention has given to system development and acquisition
