The Aurafin brand is renowned in the jewelry industry as the fashion leader in fine gold. Owned by Richline Group, Inc., a subsidiary of Berkshire Hathaway, Inc., the brand is sold by retail giants like JCPenney, Macy's, Wal-Mart, and many online outlets. However, Aurafin has overcome significant challenges in maintaining its customer relationships. Several years ago, Aurafin began experiencing such severe problems with transaction fulfillment and delivery that its customers were taking notice. In fact, JCPenney had implemented a supplier scorecard system, a type of vendor audit whereby companies, which do business with JCPenney were evaluated on the basis of the quality of service provided. This system brought to light some significant violations in Aurafin's business processes, including weaknesses in controls and inadequate computer systems.

Aurafin took quick action, undergoing a thorough IT audit which identified the specific causes of its process failures. Aurafin acted swiftly upon the recommendations made by its auditors and implemented a more reliable technology platform that empowered it to apply a variety of new audit and control techniques and to get its systems in sync with its business goals. Aurafin credits the audit processes to its newfound success, including its subsequent recognition as JCPenney's “Vendor of the Year.” This chapter focuses on various aspects of an IT audit, as well as the accountant's techniques for evaluating information-technology processes, and their importance in business processes.