IT (Computer) Auditing

Question 1

What is a disadvantage to IT?

What is an advantage to IT?

Answer 1

• Separation of duties
• Audit trail may be lacking

Advantage:
- Computer processing is uniform- computers don’t have “good days” and “bad days”

Question 2

What are the two major categories of computer related controls?

Answer 2

1) General Controls- Have widespread impact on the specific applications
2) Application controls- affect particular data processing tasks (payroll, cash disbursements, etc)

Question 3

What are the 5 categories of general controls

Answer 3

1) Organization and operation
2) system development & documentation
3) Hardware and software
4) Access
5) Data and procedures

Question 4

What does organization and operation controls focus on?

Answer 4

Segregation of duties (within company and within within the IT department)

Question 5

Within the IT department, what are the segregation of duties?

Answer 5

• System analyst (designs the system)
• Programer (develops code)
• Operator (runs the system)
• Librarian (keeps track of programs & data)
• Security (safeguards system including programs & data files)

Question 6

What are the controls related to systems development & documentation?

Answer 6

• Must adequately document the initial system

- Must document any changes (and all changes must be appropriately authorized)

Question 7

What are the hardware & software (built in controls)

Answer 7

• Parity check- between hardware components
• Echo check: transmission over phone lines
• Diagnostic routines: affecting hardware
• Boundary protection: separating multiple jobs
• Operating system: built into system software

Question 8

access to data, software, and hardware should be limited to….l?

Answer 8

Authorized personnel