ABSTRACT:

The purpose of this study is to examine factors associated with information system (IS) auditors' involvement in the development of information systems for electronic data interchange (EDI). The professional and academic auditing literature recommends that internal auditors participate in the development of complex computer systems. IS audit's role in systems de- velopment is to ensure that controls are adequate and that the systems being developed are auditable. In practice, the extent of IS audit's involvement in systems development varies across firms. Results of a survey of IS auditors indicate that the (1) strategic motivation for adopting EDI, (2) number of IS auditors, (3) placement of the IS audit function in the organizational hierarchy, (4) extent of formalization of the organization's policies and procedures, and (5) management's concern for IS audit and control are significantly related to IS auditor involvement in EDI system development.