Information systems Control and Audit

CA : Final
Group II
Paper 6: Information Systems Control and Audit
[One paper: Three Hours – 100 marks]

Level of Knowledge :

Advanced knowledge.

Objectives:

To gain application ability of necessary controls, laws and standards in computerized Information system.

Contents:

1.	Information Systems Concepts
	General Systems Concepts – Nature and types of systems, nature and types of information, attributes of information.
	Management Information System – Role of information within business
	Business information systems –various types of information systems – TPC, MIS, DSS, EIS, ES
2.	Systems Development Life Cycle Methodology
	Introduction to SDLC/Basics of SDLC
	Requirements analysis and systems design techniques
	Strategic considerations : Acquisition decisions and approaches
	Software evaluation and selection/development
	Alternate development methodologies- RAD, Prototype etc
	Hardware evaluation and selection
	Systems operations and organization of systems resources
	Systems documentation and operation manuals
	User procedures, training and end user computing
	System testing, assessment, conversion and start-up
	Hardware contracts and software licenses
	System implementation
	Post-implementation review
	System maintenance
	System safeguards
	Brief note on IS Organisation Structure
3.	Control objectives
	(a) Information Systems Controls Need for control Effect of computers on Internal Audit Responsibility for control – Management, IT, personnel, auditors Cost effectiveness of control procedure Control Objectives for Information and related Technology (COBIT) (b) Information Systems Control Techniques Control Design: Preventive and detective controls, Computer-dependent control, Audit trails, User Controls (Control balancing, Manual follow up) Non-computer-dependent (user) controls: Error identification controls, Error investigation controls, Error correction controls, Processing recovery controls (c) Controls over system selection, acquisition/development Standards and controls applicable to IS development projects Developed / acquired systems Vendor evaluation Structured analysis and design Role of IS Auditor in System acquisition/selection (d) Controls over system implementation Acceptance testing methodologies System conversion methodologies Post implement review Monitoring, use and measurement (e) Control over System and program changes Change management controls Authorization controls Documentation controls Testing and quality controls Custody, copyright and warranties Role of IS Auditor in Change Management (f) Control over Data integrity, privacy and security Classification of information Logical access controls Physical access controls Environmental controls Security concepts and techniques – Cryptosystems, Data Encryption Standards (DES), Public Key Cryptography & Firewalls Data security and public networks Monitoring and surveillance techniques Data Privacy Unauthorised intrusion, hacking, virus control Role of IS Auditor in Access Control
4.	Audit Tests of General and Automated Controls
	(a) Introduction to basics of testing (reasons for testing); (b) Various levels/types of testing such as: (i) Performance testing, (ii) Parallel testing, (iii) Concurrent Audit modules/Embedded audit modules, etc.
5.	Risk assessment methodologies and applications:
	(a) Meaning of Vulnerabilities, Threats, Risks, Controls, (b) Fraud, error, vandalism, excessive costs, competitive disadvantage, business, interruption, social costs, statutory sanctions, etc. (c) RiskAssessment and Risk Management, (d) Preventive/detective/corrective strategies
6.	Transfer pricing
	(a) Fundamentals of BCP/DRP, (b) Threat and risk management, (c) Software and data backup techniques, (d) Alternative processing facility arrangements,(e) Disaster recovery procedural plan, (f) Integration with departmental plans, testing and documentation, (g) Insurance
7.	An over view of Enterprise Resource Planning (ERP)
8.	Information Systems Auditing Standards, guidelines, best practices (BS7799, HIPPA, CMM etc.)
9.	Drafting of IS Security Policy, Audit Policy, IS Audit Reporting - a practical perspective
10.	Information Technology Act, 2000