End-user Computing Applications Implications for Intemal Auditors and Managers

B usinesses today rely on the work being done by staff using personal computers. The proliferation of personal computers has led to widespread implementation of end-user computing applications. As their name implies, end-user applications are designed, implemented, and controlled by users rather than by IT professionals. End-user applications can be risky for organizations, both with respect to management decision making and to financial reporting. For public companies, the risk involved in the.se applications has been increased by the requirements of the Sarbane.s-Oxley Act of 2002 (SOX), which call for management to document end-to-end financial operations and intemal control structures. Following is a review of the reasons for the prevalence of end-user applicatiiins and their inherent problems, as well as strategies for the intemal coiiu-ol of these applications for various-sized businesses.