2C1 - IC, Identify Key Risks with General Controls

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University of Illinois, Chicago *

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435

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Information Systems

Date

Nov 24, 2024

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docx

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2

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2C1 – Internal Controls, Identify Key Risks with General Controls General IT Controls - Related to many applications o Support the effective functioning of application controls o Helps ensure the continue proper operation of systems - Includes the following: o Data center and network operations o System software acquisition, change and maintenance o Program change o Access security o Application system acquisition, development and maintenance Access Controls - Prevent improper use or manipulation of data files, unauthorized use of a computer program, and other improper uses of computer resources - Logical or physical controls o Varying levels of authority based on need - Limit access to program documentation, data files, and computer hardware General Controls – IT Duties to Segregate - COPAL o Control Group : Monitor control, error logs o Operators : Data input, error detections on spot o Programmers : Write programs, debug programs o Analysts : Design programs, prepare flowchart o Librarian : Secure programs, store backups Phases of Development and Implementation of IT Systems - Systems Analysis : Overall objectives are considered - System Design : Specific proposal is developed - Programming and testing - Implementation : Most costly point to find problems - Monitoring : Ongoing Disaster Recovery - Identify critical operations o Create plans to restore data and business function after loss - Backup files – stored off-site o Hot site : Service that provides a virtual mirror image of customer’s current data center o Cold site : Service that provides location only, NOT equipment - Notification Procedures - Test plan periodically
Question #1 To obtain evidence that user identification and password controls are functioning as designed, an auditor would most likely: a) Attempt to sign-on to the system using invalid user identifications and passwords b) Write a computer program that simulates the logic of the client’s access control software c) Extract a random sample of processed transactions and ensure that the transactions were appropriately authorized d) Examine statements signed by employees stating that they have NOT divulged their user identifications and passwords to any other person Question #2 Daylight Corporation’s organization chart provides for a controller and an electronic data processing (EDP) manager, both of whom report to the financial vice-president. Internal control would NOT be strengthened by: a) Assigning the programming and operating of the computer to an independent control group which reports to the controller b) Providing for maintenance of input data controls by an independent control group which reports to the controller c) Rotating periodically among machine operators the assignment of individual application runs d) Providing for review and distribution of computer output by an independent control group which reports to the controller Question #3 An auditor MOST likely would test for the presence of unauthorized EDP program changes by running a: a) Program with test data b) Check digit verification program c) Source code comparison program d) Program that computes control totals
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