GKL Ltd. has recently integrated several Internet of Things (IoT) enabled devices into its production and retail operations, including connected…

Audit Implications arising from the use of IoT: A shift to connected devices and systems may result in auditors being unable to rely only on manual controls. Instead, auditors may need to scope new systems into their audit.Audit firms may need to train and upskill auditors to evaluate the design and operating effectiveness of automated controls.Consumer-facing tools that connect to business environments in new ways can impact the flow of transactions and introduce new risks for management and auditors to consider. Consider payment processing tools that allow users to pay via credit card at a retail location through a mobile device. This could create a new path for incoming payments that may rely, in part, on a new service provider supplying and routing information correctly. Auditors would need to consider the volume of those transactions and the processes and controls related to it. Common risks of IoT: The key risks associated with IoT, including, device hijacking, data siphoning, denial of service attacks, data breaches and device theft.