ABSTRACT
Effective knowledge management is crucial to enterprise risk management (ERM). ERM is based on the fact that business processes, risks, and controls across the organization are interrelated. Effective risk management can only emerge when the organization begins to share and control knowledge systematically across its functions and departments. Since knowledge-based systems are a level of complexity greater than a conventional system, the audit should be a level of complexity greater than the conventional system audit. The auditor must plan and conduct the audit to ensure the audit risk will be limited to an acceptable level. In very large systems, especially knowledge-based systems, where the code is complex and the programs are very long, the possibility for error is very high. Electronic data processing auditors are charged with ensuring that the process of creating and running of these advanced computer systems is consistent with recognized development practices.
