... meeting the multiple needs of enterprise management by bridging the gaps between business risks, technical issues, control needs and performance measurement requirements. If you believe as we do, that COBIT enables the development of clear policy and good practices for IT control throughout your organisation, we invite you to support ongoing COBIT research and development. There are two ways in which you may express your support: (1) Purchase COBIT through the association (ISACA) Bookstore (please see the following pages for order form and association membership application. Association members are able to purchase COBIT at a significant discount); (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...
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...Administrative Controls •How do Administrative Controls demonstrate "due care?" Administrative Controls demonstrate “due care” by providing and following policies, procedures, and standards 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...
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...System Integrity and Validation - Kudler Fine Foods Theresa Gibbs Acc/542 October 29, 2012 Yasin Dadabhoy System Integrity and 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...
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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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...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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...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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...The Effect of ERP System Implementations on the Usefulness of Accounting Information Joseph F. Brazel Department of Accounting College of Management North Carolina State University Campus Box 8113 Raleigh, North Carolina 27695 Telephone: 919-513-1772 Fax: 919-515-4446 e-mail: joe_brazel@ncsu.edu Li Dang Department of Accounting College of Business Oregon State University Corvallis, Oregon 97331 Telephone: 541-737-6049 e-mail: li.dang@bus.oregonstate.edu October 2005 The authors thank the international ERP system supplier for providing them with the ERP system implementation data and Marianne Bradford and Jeff Wong for helpful comments. Funding for this research was partially provided by an NCSU Edwin Gill Research Grant. The Effect of ERP System Implementations on the Usefulness of Accounting Information ABSTRACT: ERP systems have become the system of choice for the majority of publicly traded companies and have radically changed the way accounting information is processed, analyzed, audited, and disseminated. In this study, we examine whether ERP system implementations have impacted the decision usefulness of accounting information. We find that ERP adoptions lead to a trade-off between increased information relevancy and decreased information reliability for external users of financial statements. After implementing the system, firms concurrently experience both a decrease in reporting lag and an increase in the level of discretionary accruals. Contrary to expectations...
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...accounting information system attacks and failures: who to blame. I am also going to discuss the following related topics in the following order: Firstly, I will take a position on whether a firm and its management team should or should not be held liable for losses sustained in a successful attack made on their AIS by outside source. Secondly, I will suggest who should pay for the losses, to whom, and state why. Thirdly, I will give my opinion regarding the role, if any; the federal government should have deciding and enforcing remedies and punishment. Finally, I will evaluate how AIS can contribute or not to contribute to the losses. A Firm and its Management Team Should Be Held Liable for the Losses According to the Control Objectives for Information and Related Technology (COBIT) framework and the Trust Services framework, achieving organization’s business and governance objective require adequate control over IT resources. IT processes must be properly managed and controlled in order to produce information that satisfies the seven criteria: effectiveness, efficiency, confidentiality, integrity, availability, compliance and reliability. These IT processes are grouped into the following four management activities or domains (Romney & Steinbart, 2012). 1. Plan and Organize (PO), 2. Acquire and Implement (AI), 3. Deliver and Support (DS), and 4. Monitor and Evaluate (ME). First of all management develops plan to organize information resources to...
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...all coursework submissions. Table of Contents 1. Abstract 3 2. Introduction 3 The Company & Programme 3 My Role and Responsibilities 4 Situation and Assignment Objective 4 3. Literature Review 5 Quality for BI software as a product 5 Quality Dimension 6 Quality for BI software as a Service 7 Literate Review Summary 10 4. Methodology 10 Questionnaire 10 Shortcomings of data collection 11 5. Finding and Interpretations 11 Software quality Model Dimensions (Kumar et al 2010) 11 6. Conclusions & Recommendations: 17 Conclusions: 17 Recommendation: 18 7. Critical Reflection 18 References 19 Appendix 20 1. Abstract Purpose – The purpose of this paper is to determine if Quality Controls done in a Business Intelligence(BI) Software/solution development programme are enough to attain quality to meet customer’s expectations. Research...
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...internal auditing function involves five main evaluations. 1) Employee compliance with organizational policies and procedures, meaning that employees are not breaking or violating the company’s rules. 2) Effectiveness of operations, meaning that the company’s controls and production are operating as efficiently as possible. 3) Compliance with external laws and regulations, meaning that the company’s procedures and operations do not violate any governmental or business laws. 4) Reliability of financial reports, meaning that the financial reports are not biased or construed in a way that would cause misrepresentation. 5) Internal controls, this means that the company is protected (as well as possible) against fraud, theft, and corruption. Overall, the internal audit function checks the efficiency and integrity of almost the entire company. The internal audit benefits the company’s management and employees to check and ensure that company procedures are efficient and legal. The company would rather have a mistake or fraudulent information be caught by the internal auditor rather than by an external auditor. The company’s goal is that with the internal auditing function that the company will be effective and efficient in its controls, production, and management. Meanwhile, the external auditors main responsibility is to give an opinion on the accuracy and fairness of the financial statements. External auditors goal is to check if the company...
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...follow the Sarbanes-Oxley Act; which stated that all public traded U. S. corporations are required to maintain an adequate system of internal control. As the President of the company it will be both your responsibility of the board of directors to make sure that the internal controls are reliable and effective. You must also hire an independent outside auditor to come in periodically to ensure the adequacy of the company’s internal control system. TO ensure that you will be set up to meet all the internal control requirements by the time LJB goes public, this report will list the requirements of internal control and state what your company is currently doing correct and that can help the company meet the internal control standards. Internal control is defines as all the related methods and measures adopted with an organization to safeguard its assets, enhance the reliability of its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations. It has five primary components, a control environment, risk assessment, control activities, information and communication, and monitoring. These components are broken down further into six principles. These principles are establishment of responsibilities, segregation of duties, documentation procedures, physical controls, independent internal verification and human resource controls. By following the guidelines of these principles; you can ensure that your company is not only meeting regulations but...
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... Elder & Beasley, 2006). A compliance audit will assist us to obtain and evaluate evidence to determine whether your company’s financial or operating activities conform to specified conditions, rules, or regulations. The established criteria in this type of audit may come from a variety of sources. The Sarbanes-Oxley Act of 2002 requires companies to have a dual-purpose audit that audits both the financial statements and management’s assertion as to whether it has complied with criteria regarding an adequate system of internal control over financial reporting (Arens, Elder & Beasley, 2006). An operational audit will help us to obtain and evaluate evidence about the efficiency and effectiveness of your company’s operating activities in relation to specified objectives (Arens, Elder & Beasley, 2006) In addition, our company provides following attestation services: audit of historical financial statements, effectiveness of internal control over financial reporting, review of historical financial statements, and other attestation services. An audit of...
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...Cloud Computing Security Mohamed Y. Shanab, Yasser Ragab, Hamza nadim Computing & Information Technology AAST Cairo, Egypt {myshanab, yasseritc, hamzanadim }@gmail.com Abstract-- In the past two decades, data has been growing in a huge scale making it almost impossible to store, maintain and keep all data on premises , thus emerged the idea of cloud computing and now it’s becoming one of the most used services used by firms, organizations and even governments. But its security risks are always a concern and a major setback. In this paper we talk about those risks and the most feared ones and what are the latest techniques to overcome them, we also discuss a solution on cloud computing based on a fully homomorphic encryption Key Words -- Cloud computing , Cloud computing security, Challenges, Privacy, Reliability, Fully homomorphic encryption. interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models." [1] II. TOP BENEFITS OF CLOUD COMPUTING Achieve economies of scale. increase volume output or productivity with fewer people. Your cost per unit, project or product plummets. Reduce spending on technology infrastructure. Maintain easy access to your information with minimal upfront spending. Pay as you go (weekly, quarterly or yearly), based on demand. Globalize your workforce on the cheap.People worldwide can access the cloud, provided they have an Internet connection....
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... • Quality assurance was informal, every effort was made to ensure that quality was built into the final product by the people who produced it. • During the middle of the 18th century, Honore Le Blanc developed a system for manufacturing muskets to a standard pattern using interchangeable parts- -- Thomas Jefferson then brought the idea to America -- In 1798 the U.S. government awarded Eli Whitney a contract to supply 10,000 muskets to the government in two years’ time. -- Overall the concept of interchangeable parts was recognized, and it eventually led to the industrial revolution. The Early 20th Century • The work of Frederick W. Taylor, “The Father of Scientific Management”, led to a new philosophy of production. • His philosophy was to separate the planning function from the execution function. • Managers and engineers – given the task of planning; supervisors and workers - the task of execution. • Inspection was the primary means of quality control during the first half of the 20th century. • Henry Ford – developed Total Quality Management (TQM). • Statistical Quality Control...
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...Research Monograph SCHEMATIC EVALUATION OF INTERNAL ACCOUNTING CONTROL SYSTEMS Kuo-Tay Chen* and Ronald M. Lee# * Department of Management Purdue University at Calumet Hammond, IN 46323 U.S.A. chenk@pucal.bitnet # Erasmus University Research Institute for Decision and Information Systems (EURIDIS) Erasmus University Rotterdam The Netherlands rlee@fac.fbk.eur.nl ERASMUS UNIVERSITY RESEARCH INSTITUTE FOR DECISION AND INFORMATION SYSTEMS Schematic Evaluation of Internal Accounting Control Systems by Kuo-Tay Chen and Ronald M. Lee Monograph No. RM-1992-08-1 (August 11, 1992) EURIDIS Research Monograph Erasmus University Rotterdam, The Netherlands © Kuo-Tay Chen and Ronald M. Lee Permission to copy this monograph without fee is granted provided that (1) the copies are not distributed for the direct commercial purpose and (2) this copyright page including the copyright notice, the EURIDIS monograph number, and date appear. TABLE OF CONTENTS CHAPTER 1. INTRODUCTION ...................................... 1 1.1 BACKGROUND .......................................... 1 1.2 MOTIVATION ............................................. 3 1.3 OBJECTIVE OF THE STUDY .......................... 4 1.4 ISSUES OF INTEREST .................................. 6 1.5 SCOPE OF THE STUDY................................. 7 1.6 CONTRIBUTIONS OF THE STUDY .................. 8 CHAPTER 2. DECISION AIDS RESEARCH FOR INTERNAL CONTROL EVALUATION ............................................ 9 2.1 A...
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