Practices of IT Audit in Dual-Class Share Companies: A Case Study of Alphabet Inc.

Chaoyue Li

2024

Abstract

This paper explores the IT auditing practices of technology-driven enterprises operating under a dual-class share structure, using Alphabet Inc. as an illustrative case study. It examines the significance of IT auditing within this governance model and the unique challenges that arise due to its inherent characteristics. By introducing the COSO Internal Control Framework, the COBIT IT Governance Framework, and Agency Theory, the paper provides a comprehensive analysis of how dual-class share structures influence the independence and transparency of IT audits. The dual-class structure grants founding teams prolonged control over the company, which, while advantageous for strategic stability, can result in diminished audit quality and reduced governance transparency. Drawing from the practical example of Alphabet Inc., this paper elaborates on the ways in which external audit mechanisms and robust risk management strategies can strengthen the independence and compliance of IT audits. It also offers best practice recommendations for optimizing IT governance and auditing procedures, ensuring that strategic stability is preserved without compromising the effectiveness of IT control and transparency.

Paper Citation

in Harvard Style

Li C. (2024). Practices of IT Audit in Dual-Class Share Companies: A Case Study of Alphabet Inc.. In Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI; ISBN 978-989-758-726-9, SciTePress, pages 344-349. DOI: 10.5220/0013225900004568

in Bibtex Style

@conference{ecai24,
author={Chaoyue Li},
title={Practices of IT Audit in Dual-Class Share Companies: A Case Study of Alphabet Inc.},
booktitle={Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI},
year={2024},
pages={344-349},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013225900004568},
isbn={978-989-758-726-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on E-commerce and Artificial Intelligence - Volume 1: ECAI
TI - Practices of IT Audit in Dual-Class Share Companies: A Case Study of Alphabet Inc.
SN - 978-989-758-726-9
AU - Li C.
PY - 2024
SP - 344
EP - 349
DO - 10.5220/0013225900004568
PB - SciTePress