...IT AUDIT - INFORMATION SYSTEM AUDIT - INFORMATION SECURITY ASSESSMENT IT AUDIT is an independent and systematic exercise of assurance (according to standards or as per the company's defined policy) of the IT environment under study or the business application, in order to give reasonable assurance that controls over IT processes have been implemented in such a way the company can achieve its objectives effectively (using available resources optimally) and efficiently (in terms of performance), controls of which should prevent, detect or correct any undesirable event that can negatively impact the company. The measure of conformity (or not) of existing controls should be supported by the evidence that the auditor should collect and assess for reasonability, completeness and reliability. For items requiring improvements, he/she should suggest recommendations for improvement. IT AUDIT can be done at the level of an IT system or at the level for example of the responsibilities assignment procedure for the execution of a given IT process. IT Risk Assessment on the other hand seeks to identify and evaluate (quantitatively or qualitatively) the risks and vulnerabilities in the audited element and recommend measures according to best practices in order to eliminate or reducing the risk at an acceptable level. In any audit exercise, a preliminary thorough risk assessment (that culminates into drafting the audit plan) precedes the actual audit tasks. More so when the IT...
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...Information Security Audit Name Institution Information Security Audit When conducting information security audit may people tends to confuse it with information systems audit. Information system audit is a substantial, expansive term that envelops boundary of obligations, equipment an server administration, incidents and problem administration, safety, network division, privacy and security assurance (Pathak, 2004). Then again, as the name suggests, information security audit has a one point plan and that is the security of information and data when it is at the point of being transmitted and stored. Here, information should not be mistaken for just electronic information as print information is similarly critical and its security is secured during the audit process. There is a process that is followed when conducting information security audit. The first step in the information security audit is identifying assets and classifying them. This is the methodology of distinguishing valuable resources and classifying them into groups that are manageable. There are different approaches to assemble this information, including talking with key IT staff, inspecting any past reviews, and exploring stock records. In the wake of distinguishing resources, group them in relation to availability, integrity and confidentiality. Example of resources that need confidentiality that is strict are under study grades, bank records, and health records. Resources that oblige integrity (significance...
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...Risk-Based IT Audit Risk-Based Audit Methodology Apply to Organization’s IT Risk Management Kun Tao (Quincy) Cal Poly Pomona Author Note This paper was prepared for GBA 577 Advanced IS Auditing, taught by Professor Manson. March 2014 Page 1 of 26 Risk-Based IT Audit Table of Contents Abstract .......................................................................................................................................... 3 Introduction .................................................................................................................................... 4 Methodology................................................................................................................................... 6 Risk-based auditing methodology: Risk assessment...................................................................... 6 IT Risk Management................................................................................................................... 7 IT Risk Control Framework........................................................................................................ 8 Identifying assets...................................................................................................................... 13 Determining criticality and confidentiality levels......................................................................14 Threat and vulnerability identification................................................................
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...to the school such as homework, administration, research, etc. In addition to defining what is allowed, the Acceptable Use Policy should also specify what actions will be taken when a user or individual violates the policy. The acceptable use policy should be made accessible to every user. One method to do this would be to display the policy when a user logs in or direct them to where they can read the document. (Glenn, 2003.) Develop Incident Response Procedures The incident response procedures should identify the following: ← Define who the respondents are and what each individual's responsibility is ← Specify what data is to be collected and what actions are expected ◦ This would include gathering information on the attacker and a clearly defined resolution path for the team to return systems to a pre-attack state ← Details to when the team should respond ◦ Different systems should be given different priorities depending on their importance. ← How should the team escalate issues when a critical decision is needed to be made? ◦ One method to handle this would be to include a variety of individuals on the team including a key decision maker. (Glenn, 2003.) Patch Management...
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...Information Technology Auditing XX Jul 13 Information Technology Auditing In this paper we will be discussing the process of auditing in the information technology environment. Auditing within information technology can go several different was and focus on different aspect of information technology. The auditing process can be as simple as the review of software and extend all the way up to intricate aspects of a Government established information systems security features. The process of auditing will need to be completed by trained and experienced professional in order to be successful and make the end project survive the current changes in the information technology field. Most of the information technology communities fall within the parameters of two types of auditing, which are information technology auditing and information security auditing. We first discuss the concept of information technology auditing. Information technology management is the process of examining the controls within an information technology infrastructure. The information technology auditing process conduct an extensive evaluation and can determine if the established information system are doing their jobs. The process ensures the current information systems safeguarding stored assets, maintaining its system integrity and last but not least meeting the objectives and goals of the company deploying the system. This audit can be done at anytime encompassed with any other auditing...
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...Information Systems Audit Information Systems Audit An information system audit examines and evaluates an organization’s information systems, practices, and operations. The audit is designed to confirm that the information system is safeguarding the organization’s assets, ensuring data integrity, and performing in an efficient way so as to meet the organization’s goals. Information system audit plans seek to evaluate the robustness of the organization’s information system. Is the system available at all times when needed by the organization? What are the security mechanisms in place to ensure confidentiality and security of data? Is the information provided by the systems accurate? Audits of information systems may be initiated to address these individual specific issues within the overall IS environment. Information Systems Audit Program The elements of an information systems audit will address the effectiveness of controls in the following general areas: * Physical and environment review that includes physical property security, power supply, air conditioning, etc. * System administration review encompassing operating systems, databases, and system administration policies and procedures. * Application software review which is an encompassing examination of the applications being used by the organization as well as the access controls, authorizations, process flows, error and exception handling, and similar activities that effect software applications including...
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...IT255 Introduction to Information Systems Security Unit 5 Importance of Testing, Auditing, and Monitoring © ITT Educational Services, Inc. All rights reserved. Learning Objective Explain the importance of security audits, testing, and monitoring to effective security policy. IT255 Introduction to Information Systems Security © ITT Educational Services, Inc. All rights reserved. Page 2 Key Concepts Role of an audit in effective security baselining and gap analysis Importance of monitoring systems throughout the IT infrastructure Penetration testing and ethical hacking to help mitigate gaps Security logs for normal and abnormal traffic patterns and digital signatures Security countermeasures through auditing, testing, and monitoring test results IT255 Introduction to Information Systems Security © ITT Educational Services, Inc. All rights reserved. Page 3 EXPLORE: CONCEPTS IT255 Introduction to Information Systems Security © ITT Educational Services, Inc. All rights reserved. Page 4 Purpose of an IT Security Assessment Check effectiveness of security measures. Verify access controls. Validate established mechanisms. IT255 Introduction to Information Systems Security © ITT Educational Services, Inc. All rights reserved. Page 5 IT Security Audit Terminology Verification Validation Testing Evaluation IT255 Introduction to Information Systems Security © ITT Educational Services, Inc. All rights reserved...
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...that allow a company to show that steps were taken to protect the network and or information that is hidden by a responsible parties. It is critical that the CIA (Confidentiality, Integrity and Availability) is vital in protecting data that companies have of its customers. Due care is defined by the Information Systems Audit and Control Association (ISACA) as: 2.1.1 The standard of “due care” is the level of diligence which a prudent and competent person would exercise under a given set of circumstances. “Due professional care” applies to an individual who professes to exercise a special skill such as information system auditing. Due professional care requires the individual to exercise that skill to a level commonly possessed by practitioners of that specialty. 2.1.2 Due professional care applies to the exercise or professional judgment in the conduct of work performed. Due care implies that the professional approaches matters requiring professional judgment with proper diligence. Despite the exercise of due professional care and professional judgment, situations may nonetheless arise where an incorrect conclusion may be drawn from a diligent review of the available facts and circumstances. Therefore, the subsequent discovery of incorrect conclusions does not, in and of itself, indicate inadequate professional judgment or lack of diligence on the part of the IS auditor. (Information Sys) Administrative Controls and due care should go hand in hand. One cannot...
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...Validation - Kudler Fine Foods Over the past few weeks the team has analyzed Kudler’s information systems, recommended industry-specific software, analyzed its inventory data tables, and internal controls and risks for an audit proposal. After analyzing the necessary components the team recommends that an SAS 94 audit is appropriate for Kudler. To conduct the audit the auditor will use computer assisted audit tools and techniques (CAATTs) or in Kudler’s case computer assisted audit techniques (CAATs). The following brief is an explanation of how CAATs is used to validate data and the system integrity, and explain audit productivity software. CAATs CAAT is techniques that increase the auditor’s productivity and effectiveness during the audit function. CAATTs uses tools, such as software to increase the auditor’s productivity and extract data, and analyze the data in addition to the techniques. The techniques are used to validate application integrity and verify data integrity of Kudler’s information systems. “These techniques include generating test decks of data, writing and embedding automated audit modules, and performing digital analysis and linear regression on a client’s data” (Hunton, 2004, p. 179). CAAT assists the auditor in collecting sufficient, reliable, relevant, and useful evidence that supports the planned audit objects. The Standards Board of the Information Systems Audit and Control Association (ISACA) governs the use of CAATs with Guideline 70. Guideline...
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...(2) Make a generous donation to the IT Governance Institute, which conducts research and authors COBIT. The complete COBIT package consists of all six publications, an ASCII text diskette, four COBIT implementation/ orientation Microsoft® PowerPoint® presentations and a CD-ROM. A brief overview of each component is provided below. Thank you for your interest in and support of COBIT! For additional information about the IT Governance Institute, visit www.itgi.org. We invite your comments and suggestions regarding COBIT. Please visit www.isaca.org/cobitinput. Management Guidelines To ensure a successful enterprise, you must effectively manage the union between business processes and information systems. The new Management Guidelines is composed of maturity models, critical success factors, key goal indicators and key performance indicators. These Management Guidelines will help answer the questions of immediate concern to all those who have a stake in enterprise success. Executive Summary Sound business decisions are based on timely, relevant and concise information. Specifically designed for...
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...Professional Knowledge and Abilities GEN/200 July 11, 2010 Professional Knowledge and Abilities In my quest to obtain a bachelor’s degree in information technology with a concentration in Information Security System, I want to become as marketable as possible. A step in that direction would be aligning myself with ISACA to network and stay abreast in the ever-changing world of technology. ISACA is a nonprofit, global membership association for IT and information system professionals. It is committed to equipping its diverse constituency with the tools needed to achieve individual and organizational success. ISACA has more than 180 chapters in greater than 75 countries worldwide, which provide members with education, resource sharing, advocacy, professional networking, and a host of other benefits on a local level. This association covers a wide variety of professional IT related positions including Information Security auditor, consultant, educators, Information Systems security professional, risk professional, chief information officer and internal auditor. ISACA members represent a broad sector of industry, including finance and banking, public accounting, government, utilities, and manufacturing. ISACA, previously known as the Information Systems Audit and Control Association, currently goes by its acronym only, to reflect the broad range of IT governance professionals it serves (ISACA, 2010). ISACA’s contribution to increasing professional knowledge and...
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...Chapter 01 An Introduction to Assurance and Financial Statement Auditing True / False Questions 1. | Independence standards are required for audits of public companies, but not for audits of private companies. True False | 2. | Decision makers demand reliable information that is provided by accountants. True False | 3. | Information asymmetry seldom occurs. True False | 4. | Conflicts of interest often occur between absentee owners and managers. True False | 5. | Auditing services and attestation services are the same. True False | 6. | Auditing is a type of attest service. True False | 7. | Testing all transactions that occurred during the period is cost prohibitive. True False | Multiple Choice Questions 8. | Why do auditors generally use a sampling approach to evidence gathering? A. | Auditors are experts and do not need to look at much to know whether the financial statements are correct or not. | B. | Auditors must balance the cost of the audit with the need for precision. | C. | Auditors must limit their exposure to their auditee to maintain independence. | D. | The auditor's relationship with the auditee is generally adversarial, so the auditor will not have access to all of the financial information of the company. | | 9. | Which of the following statements best describes a relationship between sample size and other elements of auditing? A. | If materiality increases, so will...
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...public or private. One essential assurance engagement a CPA performs is an audit of financial statements. Audits of financial statements play a vital role in the business industry. An auditor can reasonably assure investors, lenders, management, and stakeholders that the financial statements are free from material misstatement and accurately reflect the accounting of the entity for that period of time. However, an auditor cannot provide an absolute assurance due to the inherent limitations of an audit. Generally, an audit includes the following steps: overall audit planning, assess control risk, perform tests of controls, perform substantive tests of account balances, and finally complete the audit (Kerr, Elder and Arens). In the overall audit planning stage, the CPA has to obtain an understanding of the potential client’s business and establish if the CPA Firm and its associates are independent. These two steps must be done before the CPA Firm can decide to accept the audit engagement. There are many important factors, steps, issues, knowledge, just to name a few that go into an audit but this paper will focus on the issue of independence. One of the principles listed in the AICPA Professional Code of Conduct states that an auditor in public practice must be independent in appearance and fact (AICPA Standards). As stated previously, the initial step in the audit process is to perform overall audit planning. Within this first step the Firm and its associates have to decide...
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...accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent person. “The auditing profession offers a wide range of employment opportunities for new accountants. Most accounting firms offer client services in three areas: auditing, tax, and consulting. A new accountant might be hired to work in any of these areas. In the audit area, the accountant may work for a variety of clients including private or public companies, clients in banking, insurance, manufacturing, technology, retail, health care, or government. Individuals working in the audit area may also spend most of their time providing internal audit services to clients rather than working as an external auditor. Working in any of the areas in an accounting firm may be one of the most demanding jobs, but it is also one of the most interesting, exciting experiences and a great way to prepare to work in the corporate business world.” “What is Auditing?” Web. 29 September 2013 Accounting is the recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making. To provide relevant information, accountants must have a thorough understanding of the principles, and rules that provide the basis for preparing the accounting information. In addition, accountants must develop a system...
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...portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice. True False 2. The AICPA Code of Professional Conduct derives its authority from the Bylaws of the AICPA. True False 3. An immaterial loan from the CPA to an officer of a client impairs the independence of the CPA. True False 4. Financial interests of a CPA's nondependent children are attributed directly to the CPA. True False 5. Statements on Accounting and Review Services are enforceable under the AICPA Code of Professional Conduct. True False 6. CPAs may not advertise as to any special expertise other than in accounting, auditing, and tax. True False 7. A CPA may receive a commission for recommending a particular computer system to an audit client. True False 8. The communications between CPAs and their clients are privileged under federal law. True False 9. CPAs can advertise the fees only for their nonattest services. True False 10. The American Institute of Certified Public Accountants has been the primary source for ethical rules for internal auditors. True False Multiple Choice Questions 11. ABC Company is audited by the Phoenix office of Willingham CPAs. Which of the following individuals would be least likely to be considered a "covered member" by the independence standard? A. Staff assistant on the audit. B. An audit partner in...
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