Auditing the Internet of Things

The Internet of Things (IoT) is poised to become an integral part of everyone's lives in the not-too-distant future. From coffee machines churning out the kind of coffee people want depending on their mood, to their automobile switching on by itself and adjusting the climate control as they approach it on a weekday morning, the IoT potentially could make people's lives easier as their devices generate data and communicate with each other over the Internet (see "A World of Smart Things," below right). 

The definition of the IoT has evolved over time. TechTarget describes the IoT as "a scenario in which objects, animals, or people are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction." 

The big question is, does the IoT have a similar outlook for organizations? The answer is the possibilities are limitless, which is why many organizations already have started to adopt the IoT. Internal auditors should evaluate the operational and financial risks that IoT can expose their organizations to and provide assurance that those risks are controlled appropriately. 

The Internet of Things (IoT) is poised to become an integral part of everyone's lives in the not-too-distant future. From coffee machines churning out the kind of coffee people want depending on their mood, to their automobile switching on by itself and adjusting the climate control as they approach it on a weekday morning, the IoT potentially could make people's lives easier as their devices generate data and communicate with each other over the Internet (see "A World of Smart Things," below right). 

The definition of the IoT has evolved over time. TechTarget describes the IoT as "a scenario in which objects, animals, or people are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction." 

The big question is, does the IoT have a similar outlook for organizations? The answer is the possibilities are limitless, which is why many organizations already have started to adopt the IoT. Internal auditors should evaluate the operational and financial risks that IoT can expose their organizations to and provide assurance that those risks are controlled appropriately.