IT related risks can have an impact on audit. In what different ways, such risks can have an impact on audit of financial statements?

IT related risks can have an impact on audit in different ways discussed as under: Impact on substantive checking Inability to address IT risks may lead to non-reliance of data obtained from systems. In such a case, all information, data, and reports would have to be tested thoroughly for their completeness and accuracy. It could lead to increased substantive checking i.e. detailed checking. Impact on controls It can lead to non-reliance on automated controls, system calculations and accounting procedures built into applications. It may result in additional audit work. Impact on reporting Due to regulatory requirements in respect of internal financial controls in case of companies, it may lead to modification of auditor's report in some instances.