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Audit Step W/P Ref Preparer
Sign-off
Reviewer
Sign-off
1. Prepare the audit announcement / notification letter informing
applicable people of the estimated start date of the audit, the
objective and the scope. E-mail it to addressee(s). Maintain e-mail
in audit file.
2. Prepare a budget of estimated audit hours by audit category. See
Audit Time Budget tab. Identify audit staff that will be assigned to
the engagement.
3. Review prior SDLC audits and permanent files to ensure
understanding of SDLC process and previously identified audit
findings. Document any risks noted in the Risk Assessment tab.
Update information in the permanent files, if necessary.
4. Perform pre-audit risk assessment. Map risks identified with
audit procedures by updating the Benchmarking and Detail Audit
Testing tabs as necessary.
5. Obtain and review the most current SDLC Policies and
Procedures manual from auditee. Update the Benchmarking and
Detail Audit Testing tabs as necessary.
6. Research industry best practices (ISACA, IIA, NIST, ISO,
PMBOK) and compliance requirements (PCI DSS, Privacy, HIPAA,
etc.) that are applicable to the system being implemented. Update
the Benchmarking and Detail Audit Testing tabs as necessary.
Scope
The audit of the SDLC process will review each phase of a system implementation project. The audit will
address the following areas: governance and risk management, compliance with company procedures and
regulation, project management methodology, budget, internal controls, and business processes.
5. Provide management with an evaluation of the project metrics / KPIs and expected benefits stated within the
project business case report.
AA - Planning
4. Provide management with an assessment of the adequacy of security controls implemented.
[INSERT NAME OF AUDIT AND AUDIT NUMBER]
Objectives
1. Provide management with an independent assessment of the progress, quality and attainment of project
objectives, at defined milestones within the project, based off of company policies and procedures.
3. Provide management with an evaluation of the internal controls of proposed business processes at a point in
the development cycle where enhancements can be easily implemented and processes adapted.
2. Provide management with an assessment of the adequacy of project management methodologies and that
the methodologies are applied consistently across all projects.
Audit Step W/P Ref Preparer
Sign-off
Reviewer
Sign-off
7. Schedule pre-audit meeting with audit team and IT Project Team
to discuss the objectives, scope, timing, involvement and
requirements of the audit. Maintain meeting minutes.
(Note: Audit Team should communicate to the Project Team the
expectation that Audit Team will be invited to project meetings and
included in any project e-mail groups.)
8. Prepare a preliminary request list of documentation and discuss
it during the pre-audit meeting (e.g. flow charts, process narratives,
listing of project team members, business case, system product
information, etc).
See separate tab for detailed audit program.
1. Prepare Audit Memos for each major phase of the IT Project (see
below) and e-mail it to Project Team and Project Sponsor. Request
from addressee(s) response(s) to all audit findings, along with an
implementation date.
a. Business case and planning phase.
b. Development and build phase.
c. Testing phase.
d. Pre Go-live & data conversion phase.
f. Training phase.
2. Prepare draft Audit Report and e-mail it to direct addressee(s).
Request from addressee(s) response(s) to all audit findings, along
with an implementation date.
3. Schedule an audit completion meeting with the Project team and
Project Sponsor within 2 weeks of issuing the draft report. Review
draft audit report and discuss audit findings and recommendations.
Maintain meeting minutes.
4. Review management response (i.e. Action Plan) to audit findings.
Review completion date(s) of action items for reasonableness.
5. Prepare final version of Audit Report and include the responses
received from addressee(s) for all audit findings (if applicable). E-
mail it to addressee(s) and management.
6. Prepare and e-mail Audit Survey to auditees. Request that
responses are returned to the Audit Manager. See Audit Survey
tab.
Detailed Audit Testing
BB - Audit Conclusion and Reporting
Audit Step W/P Ref Preparer
Sign-off
Reviewer
Sign-off
1. Perform follow-up procedures (if applicable) to ensure that
responses to audit findings have been implemented. Follow-up
procedures should be performed within 6 months of issuance date
of audit report. (Note: If management hasn't addressed findings,
schedule a meeting with applicable employees to discuss
implementation of action plan. Maintain meeting minutes.)
2. Prepare Follow-up Audit Report and e-mail it to direct
addressess(s) and management.
3. If management is not properly or timely addressing audit findings,
escalate the matter to the CAE. Document escalation in a
memorandum to the Audit Files.
1. Perform a residual risk assessment and incorporate risks into the
annual audit risk assessment.
2. Update permanent file, if necessary.
3. Review audit workpapers. Verify that all review notes have been
properly addressed and closed. Verify that audit sign-offs have
been performed by audit staff and reviewer(s).
4. Schedule a meeting of the audit team to discuss what worked
well during the audit and areas for improvement to consider for
future audits. Discuss with Audit Manager.
5. This audit has been completed in its entirety as of: [insert date]
6. The audit report and workpapers shall be retained for 7 years
from the date of completion, unless indicated otherwise (e.g.
permanent files). The retentation date is:
[insert date]
DD - Audit Close-Out & Retention Dates
CC - Follow-up Audit Procedures
Audit Area Budget Hours Actual Hours Notes
Planning
Reporting
Follow-up Audit Procedures
Audit Close-out
Detailed Audit Testing
Project Governance
Pre Implementation - Business Case & Project Planning
Pre Implementation - System Development
Pre Implementation - Testing
Pre Implementation - Pre Go-Live & Conversion
Pre Implementation - Training
Post Implementation - Support & Maintenance
Post Implementation - Project Assessment
Post Implementation - Internal Controls Assessment
Total Hours 0 0
Planning
Reporting
Follow-up Audit Procedures
Audit Close-out
Detailed Audit Testing
Project Governance
Pre Implementation - Business Case & Project Planning
Pre Implementation - System Development
Pre Implementation - Testing
Pre Implementation - Pre Go-Live & Conversion
Pre Implementation - Training
Post Implementation - Support & Maintenance
Post Implementation - Project Assessment
Post Implementation - Internal Controls Assessment
Total Hours 0 0
Audit Charge Code:
Audit Manager: [Insert Auditor Name]
Audit Senior: [Insert Auditor Name]
Audit Area Budget Hours Actual Hours Notes
Audit Charge Code:
Planning
Reporting
Follow-up Audit Procedures
Audit Close-out
Detailed Audit Testing
Project Governance
Pre Implementation - Business Case & Project Planning
Pre Implementation - System Development
Pre Implementation - Testing
Pre Implementation - Pre Go-Live & Conversion
Pre Implementation - Training
Post Implementation - Support & Maintenance
Post Implementation - Project Assessment
Post Implementation - Internal Controls Assessment
Total Hours 0 0
Audit Staff: [Insert Auditor Name]
[Provide a high level overview of the area(s), function(s), business process(es), and current systems that will be affected by the system being
implmeneted.]
General listing of common risks that may occur during a system implementation project.
• System does not align with strategic objectives
• End Users do not accept the system due to poor design
• Project mismanagement leads to scope creep, budget overruns, and delays
• Security vulnerabilities
• Internal control gaps
• Lack of data completeness, accuracy, and integrity
• Inability to adhere to regulation resulting in fines / penalties
• Damage to reputation (especially if system is used by external parties)
• Disruption of service
Risk Rating Definition
High Rating: The potential for a material impact on the company's earnings, assets, reputation, customers, and operations. This risk
has a high likelihood of occurring.
Medium Rating: The potential for a significant impact on the company's earnings, assets, reputation, customers, and operations. This
risk has a medium likelihood of occurring.
Low Rating: The potential for a significant impact on the company's earnings, assets, reputation, customers, and operations. This
risk has a low likelihood of occurring.
Risk Assessment Questionnaire Audit Notes Risk Rating Audit Step
R1 How will the new system benefit your area and the company
the most?
R2 How critical is the system to the overall organization?
R3 Will the system be included in the corporate wide Disaster
Recovery Plan and / or Business Continuity Plan?
(Note: Not all systems will be in the DRP due to low
criticality rating. Auditor should ask if the department will
prepare procedures to perform in situations where the
system is unavailable? If not, then system should be
reassessed to determine if it warrants Internal Audit
attention due to its insignificance in regards to company
wide needs).
R4 Will this system be used by external parties (e.g. customers
or business partners) or internally?
R5 What function(s) do you believe will be impacted the most
by the new system?
R6 Will the new system change the business process(es)
significantly?
R7 Were other departmental groups included in the
assessment of the product to ensure that it meets all user
needs?
R8 What are the weaknesses in your current process(es) and
will they be addressed by the new system?
R9 Will the new system require a significant amount of
customization?
R10 Will the system contain confidential information? If so, what
kind of data (e.g. customer PII, employee PII, R&D,
intellectual property, etc.)?
R11 How will access to confidential data be safeguarded during
the development of the system (e.g. security is generally not
tight in a development or test environment)?
R12 How will access to confidential data be safeguarded when
system is in production through access rights (e.g.
segregation of duties)?
R13 What systems will be interfacing with the new system?
R14 What system(s) will be retired once the new system is in
production?
R15 What data will be converted over to the new system?
R16 Do you believe the data to be converted is complete and
accurate (e.g. good data) or does the data need to be
cleansed?
R17 Do you believe the budgeted timeline for the project is
acheivable?
R18 If the estimated go-live date was significantly delayed, what
would be the impact on the organization?
R19 What do you believe would be the most challenging aspect
of the project?
R20 Do you believe that the project has the appropriate support
from senior / upper management?
R21 In looking back on previous implementation projects, what
were the things that worked well and what were the things
that did not work well? How do you plan on addressing the
things that did not go well?
R22 Do you have any concerns regarding project team personnel
resources (e.g. availability, training, experience)?
R23 Do you believe that there are departmental silos that may
impact the development and implementation of the system?
R24 What areas do you believe could result in scope creep?
Audit Senior Interview of Project Team Members
Risk Assessment Questionnaire Audit Notes Risk Rating Audit Step
R25 Do you believe that the new system will require a significant
amount of support from the Help Desk, IS, Super Users, or
the Project Team members after it goes live?
R26 Did you include an assessment of the vendor's security
process related to the product you are purchasing for the
history of vulnerabilities, notifying customers of
vulnerabilities and remediating vulnerabilities identified
through patching?
R27 Will you be using a software development model in
implementing this system? (e.g. rapid application
development, joint application development, agile, spiral,
prototype, or waterfall)
R28 Will you be using any implementation tools on the cloud in
implementing this system?
R29 Does this system or the data that will be contained within it
fall under the scope of international / federal / state
regulation?
R30 [Add additional risks as needed]
R31 Indicate risks stated in the annual audit risk assessment.
R32 Indicate risks identified in review of prior SDLC audits
performed.
R33 Indicate any control deficiencies identified in the area(s),
function(s), or business process(es) that have occurred in
the past two years.
R34 Determine if the members on the Project Team have the
proper training and experience to manage a SDLC project.
R35 Are there any financial risks concerning this project (e.g.
going overbudget, impacting the financial statements,
impacting customer billing or vendor payments, etc.)?
R36 Are there any fraud risks that need to be considered
(programming backdoors, unauthorized access to / theft of
data, intentionally misconfiguring the system, unauthorized
individual (internal employees and contractors) with access
to data and / or systems)?
R37 Are there any security risks that need to be considered
(server / OS, application, data, placement in network
infrastructure (segmentation))?
R38 Review post implementation project assessment reports
and identify any lessons learned that may pose a risk to this
project.
r
R39 Assess if there are any risks related to the response in
question #R27.
R40 Assess if there are any risks related to the response in
question #R28.
R41 [Add additional risks as needed]
Audit Team Assessment
Audit Risk Control
Lack of procedures leads to
mismanaged project, system not
meeting business needs, and
ineffective responsibilities and
accountabilities.
IT project management policy,
procedures, and templates have been
developed and are reviewed on a
periodic basis.
A1
Employees do not have the
required skills to implement a
system leading to mismanaged
project and system not meeting
business needs.
Employees involved in IT system
implementation projects have been
trainined on policy, procedures and
use of the templates.
A2
A3
A4
A5
Project Steering Committee provides
oversight over IT system
implementation projects.
Section A - Governance
Audit Procedures
Communication of project status
are not performed throughout the
life cycle of the project resulting in
unidentified issues, surprises and
delays.
A6
A7
A8
A9
A10
A11
A12
A13
Project Team meets regularly with
project team members, subject matter
experts, and system implementors /
contractors to review project status
and identify tasks and issues.
An organizational change
communication plan is developed and
implemented. (typically for major
systems)
End Users do not accept or use
the system.
A14
B1
B2
B3
B4
Lack of business justification
results in the purchase of a system
that does not meet business
needs.
IT projects are assessed according to
organizational objectives and are
approved.
Vendor is selected according to
company bid procedures.
Inadequate vendor is selected to
implement the system resulting in
cost overruns, project delays, and
system not meeting business
needs.
Section B - Pre-Implementation: Business Case and Project Planning
B5
B6
B7
B8
B9
B10
B11
Vendor contract is prepared according
to company procedures.
Inadequate contract terms may
result in cost overruns, project
delays, and exposure to additional
risks (e.g. unauthorized access /
disclosure of data).
A project plan is created to establish
accountability and expectations.
Inadequate project planning may
result in cost overruns, project
delays, and system not meeting
business needs.
B12
Lack of procedures leads to
mismanaged project, system not
meeting business needs, and
ineffective responsibilities and
accountabilities.
Project documentation is in
conformance with company
procedures.
B13
System design team does not
understand capabilities resulting in
inadequate system design.
Project Team members are trained on
the capabilities of the system prior to
blueprinting.
B14
B15
C1
C2
System Development Plan meets
business needs and is updated
throughout the project.
C3
Section C - Pre-Implementation: System Development -- Design & Build
System design meetings are held with
a crossfunctional group of users and
technical SMEs.
Inadequate system design results
in a system that does not meet
user needs and increases
likelihood of nonacceptance.
Security and internal control
requirements are included in the
System Development Plan.
C4
System Development Plan is reviewed
and approved by Project Sponsor.
C5
C6
C7
Confidential data is properly secured. C8
Inadequate data conversion plan
results in data integrity issues and
increases likelihood of
nonacceptance by users.
Data Conversion Plan is well designed
and meets business needs.
Data Conversion Plan is reviewed and
approved by Project Sponsor.
C9
Lack of procedures leads to
mismanaged project, system not
meeting business needs, and
ineffective responsibilities and
accountabilities.
Project documentation is in
conformance with company
procedures.
C10
Project team members are
unaware of system design
documentation leading to a system
that does not meet business
needs.
Project documentation is
communicated to Project team
members.
C11
C12
C13
System build is in conformance with
company policies and procedures.
Lack of procedures leads to
mismanaged project, system not
meeting business needs, and
ineffective responsibilities and
accountabilities.
C14
C15
C16
C17
C18
C19
C20
Inaccurate converted data results
in data integrity issues and
increases likelihood of
nonacceptance by users.
Data in the old system is reviewed to
ensure accuracy and integrity.
Data conversion process is tested and
errors are addressed.
Inadequate testing of data
conversion results in unidentified
issues or errors occurring during
the go-live phase.
C21
C22
C23
C24
C25
Project Lead reevalutes the project
budget, timeline, and milestones
against actual results throughout the
project to identify any issues that need
to be addressed.
Lack of project monitoring leads to
budget overruns, delays and not
meeting project objectives.
System documentation is developed
and maintained to current
specifications.
Lack of technical documentation
leads to inability to effectively
support the system.
C26
C27
C28
Lack of a test plan may lead to
ineffective testing resulting in
acceptance of a system that does
not meet business needs.
Test Plan is created to ensure testing
is complete and system meets stated
requirements prior to implementation.
D1
Lack of procedures leads to
mismanaged project, system not
meeting business needs, and
ineffective responsibilities and
accountabilities.
Project documentation is in
conformance with company
procedures.
D2
Lack of a test plan may lead to
ineffective testing resulting in
acceptance of a system that does
not meet business needs.
Test Plan is reviewed and approved by
Project Sponsor.
D3
Test environment is created and kept
separate from the development and
production environment.
D4
Lack of a test environment results
in ineffective testing and may lead
to a system not meeting business
needs.
Section D - Pre-Implemetntation: Test
Test environment simulates the
production environment.
D5
Lack of cross functional testers
may result in system not meeting
business needs.
Testers are made up of cross
functional users to ensure system
meets business needs.
D6
D7
D8
D9
D10
Testing issues identified are not
resolved prior to implementation.
Issues are tracked in a log and
monitored to ensure timely and proper
resolution.
D11
Lack of a test scripts may lead to
ineffective testing resulting in
acceptance of a system that does
not meet business needs.
Test scripts are created and monitored
for satisfactory results.
D12
D13
D14
D15
Lack of a test scripts may lead to
ineffective testing resulting in
acceptance of a system that does
not meet business needs.
Test scripts are created and monitored
for satisfactory results.
Lack of a test environment results
in ineffective testing and may lead
to a system not meeting business
needs.
Lack of technical documentation
leads to inability to effectively
support the system.
System documentation is developed
and maintained to current
specifications.
D16
D17
D18
D19
D20
D21
Lack of implementation plan
results in go-live steps being
missed leading to a system that
does not meet business needs or
unavailability of the new system.
Implementation Plan is created to
ensure a smooth and complete
transition to the production
environment.
E1
Lack of procedures leads to
mismanaged project, system not
meeting business needs, and
ineffective responsibilities and
accountabilities.
Project documentation is in
conformance with company
procedures.
E2
Project Lead reevalutes the project
budget, timeline, and milestones
against actual results throughout the
project to identify any issues that need
to be addressed.
Lack of project monitoring leads to
budget overruns, delays and not
meeting project objectives.
Section E - Pre-Implementation: System Pre Go-live & Data Conversion
Lack of implementation plan
results in go-live steps being
missed leading to a system that
does not meet business needs or
unavailability of the new system.
Implementation Plan is reviewed and
approved by Project Sponsor.
E3
E4
Modification of loss of data in the
old system may impact data
conversion process.
Data in the old system is backed up
prior to data conversion to production
environment.
E5
E6
E7
E8
All test scripts have been completed
with satisfactory results.
E9
Production environment is tested to
ensure it performs in the same
capacity as the test environment.
E10
Unresolved issues are tracked. E11
Unresolved issues are assessed for
impact on the system prior to going
live.
E12
Lack of testing of the production
environment prior to go live may
result in system not meeting
business needs or unavailability of
the system.
Unresolved issues are not
identified resulting in system not
meeting business needs in
production environment.
Inadequate testing of data
conversion results in unidentified
issues or errors occurring during
the go-live phase.
Data conversion process is tested and
errors are addressed.
Unresolved issues are reviewed and
approved.
E13
Privielged users do not have access to
the production environment.
E14
Security personnel review and approve
the security specifications prior to
system going live.
E15
Lack of access review may lead to
unauthorized users having access
to the system or authorized users
set up in the wrong access group.
System owner reviews and approves
user access rights prior to system
going live.
E16
E17
E18
Lack of go-live checklist results in
go-live steps being missed leading
to a system that does not meet
business needs or unavailability of
the new system.
Go-live checklist is maintained to track
all go-live tasks and ensure all have
been completed.
E19
E20
E21
E22
E23
meeting business needs in
production environment.
Lack of project monitoring leads to
budget overruns, delays and not
meeting project objectives.
Project Lead reevalutes the project
budget, timeline, and milestones
against actual results throughout the
project to identify any issues that need
to be addressed.
Lack of security controls leads to
security vulnerabilities in the
system.
Section F - Pre-Implementation: Training
Lack of approval to go-live may
result in system not meeting
business needs.
Project Steering Committee approves
system to go live.
F1
F2
F3
F4
F5
Lack of support personnel may
lead to user frustration and lack of
acceptance.
Support team is properly staffed to
meet business needs.
G1
G2
G3
G4
Support personnel do not
understand system and are unable
to resolve user issues.
Technical training is provided to
support personnel on newly
implemented systems.
G5
G6
G7
Lack of a patch management
process leads to security
vulnerability exposures.
Patch management procedures are in
place and reviewed annually.
G8
Section G - Post Implementation: Support & Maintenance
Training is provided to users to provide
them with the proper procedures in
utilizing the system.
Users do not accept the system.
Slow support response may lead
to user frustration and lack of
acceptance.
Lack of change management
procedures results in unauthorized
changes being made, changes not
being properly tested, and system
documentation not being updated.
Change management procedures are
in place and reviewed annually.
SLA metrics are developed and
monitored to measure performance
and meet business needs.
Lack of inventory listing leads to
unauthorized devices / software on
the network resulting in exposure
to security vulnerabilities.
IT asset inventory listing is maintained
and reviewed on an ongoing basis.
G9
H1
H2
H3
H4
H5
H6
I1
I2
Internal controls are not created or
operating effectively for the
system, which could lead to
inaccurate financial reporting.
Section H - Post Implementation: Review of Project Results & Close Out
Secion I - Post Implementation: Internal Controls Assessment
Post implementation review is
performed by the Project Lead and
reviewed by the Project Steering
Committee.
I3
Evaluation of the management of
the project is not performed, which
could lead to ineffective project
management practices, an
ineffective system, and not
meeting business objectives.
Internal controls are created or
modified to ensure the safeguarding of
assets and financial records. Controls
to be considered:
- security
- change management
- operations
- continuity
- business processes
I4
- operations
- continuity
- business processes
Pre-Audit
Risk #
Company
Procedures
COBIT 5 COSO
Principle
Obtain and examine policy, procedures and
templates. Verify that they address the following:
- Business Case Analysis
- Project risk assessment
- Roles and responsibilities
- System documentation
- System specification
- User specification
- Security specification
- System development plan
- Change requests
- Developing internal controls
- Project issue procedures
- Data conversion plan
- Test plan
- Pre Go-live plan
- Training
- Organizational change management plan
- Project monitoring & status updates
- Post implementation project review
BAI01.01 4, 5, 10, 11,
12
Examine training records and verify that
employees on the project team have been trained
on company IT project management procedures.
BAI01.12 4
Verify that a Project Steering Committee exists,
as evidenced by the committee charter.
BAI01.02 3
A member of the Audit Team should attend the
Project Steering Committee meetings.
Obtain and examine Project Steering Committee
meeting minutes to verify that committee is
reviewing project status, achievement of project
milestones, monitoring budget-to-actual costs,
and results of project measurements (i.e. KPIs).
BAI01.05,
BAI01.06,
BAI01.07,
BAI01.11
5, 13, 16
Audit Procedures
Verify that the Project Team Lead is submitting
status reports on a periodic basis and any other
required documentation to the Project Steering
Committee throughout the lifecycle of the project.
Status reports should contain budget-to-actual
comparison & variation analysis, monitoring of
milestones & KPIs, description of achievements
and any issues effecting the progress of the
project.
BAI01.06,
BAI01.07,
BAI01.11
14, 16
Verify that the Project Steering Committee has
reviewed the post implementation project results
report and develops an Action Plan to address
any actionable lessons learned.
BAI01.06,
BAI01.11
17
A member of the Audit Team should attend the
Project Team status meetings.
Examine the Project Team's status meeting
minutes and verify that the team discusses tasks
completed / to be completed and issues identified
/ assigned / resolved.
BAI01.08 16
Verify that an organizational change
communication plan has been developed and
should address:
- Assessing company's readiness to accept
change
- Educating end users on the reason and timing
behind the change
- Roles and responsibilities of organizational
change management team
- Vision and strategy for change
- Communication of vision and strategy to end
users
- Remove barriers / silos that inhibit end user
acceptance
- Short-term and long-term goals identified and
monitored
- Identify training needs
- Other communication activities (newsletter,
posters, intranet site, etc.)
- Continuous feedback
BAI01.03 14
Verify that an external communication plan has
been created to provide information to customers
and / or business partners regarding the
implementation of the system (if system will be
used by these parties).
BAI01.03 15
Verify that the Communication Plan has been
approved by the Project Sponsor.
BAI01.03 3
Verify that the communication plan has been
implemented.
BAI01.03 14
Interview a sample of employees to determine the
effectiveness of the communication plan and end
user acceptance of system.
BAI01.03 14
Verify that a Business Case Report has been
developed and approved by the appropriate level
of management and governance committee(s)
(e.g. IT Steering Committee, Capital Assets
Committee, etc.).
BAI01.02 6
Verify that the Business Case Report includes:
- Current state of business process, identifying
any control weaknesses
- Expected future state of business process
(consider future growth)
- Addresses corporate / department strategic
goals
- Description of the application systems reviewed
(e.g. proof of concepts, demos)
- Reason behind system recommended to be
implemented (e.g. feasibility study)
- Cost benefit analysis (dollar & labor cost /
benefits, other benefits)
- Potential risks of the project and significance of
risks
- Potential impact to critical systems
- Regulatory concerns / approvals
- End User feedback
BAI01.02,
BAI01.10,
BAI02.02
6, 7, 9, 13
Verify that a Request for Proposal was prepared
and sent to selected vendors.
APO10.02
Verify that Vendor proposals were reviewed for:
- Reputation and experience of vendor
- Experience of vendor personnel
- Proposal content met scope of the project
- Rates for time and expense
- Ability to respond to system vulnerabilities and
provide patches to customers timely
APO10.02
ning
Verify that the vendor contract addresses the
following:
- Vendor expectations
- Deliverables
- System requirements
- Warranties and liabilities
- Rates for time and expense (pymt terms based
on achievement of milestones)
- Change request process
- Confidentiality / Non-Disclosure
- Terms and conditions
- Project timelines and milestones
- Insurance requirements
- Adherence to company policies and procedures
in developing system
- Terms to restore back to current system
BAI03.03,
BAI03.04,
APO10.01,
APO10.02
Verify that the vendor contract has been
approved by the appropriate level of
management.
3
Verify that a Project Plan has been created and
includes:
- Project objectives
- Project scope
- Project risk assessment
- Identifies stakeholders
- Project Sponsor
- Team members
- Roles and responsibilities
- Budgets and timelines
- Project milestones and KPIs
- Communication plan
- Deliverables
- Change in scope procedures
BAI01.04,
BAI01.05,
BAI01.07,
BAI01.08,
BAI01.10,
BAI01.12,
BAI02.03
3, 5, 6, 7, 14
Verify that the Project Plan has been approved by
the Project Team Lead and Project Sponsor.
BAI01.07
Verify that a project kick-off meeting has been
held to review the Project Plan with team
members by obtaining the meeting minutes.
BAI01.07.
BAI01.08
14
Assess project timelines and determine if timeline
is reasonably acheivable.
Assess project pesonnel resources for:
- Availability
- Cross functional respresentation of all
departments impacted by system
- Experience
BAI01.12
Review prior project lessons learned and
determine if they have been properly incorporated
into the Project Plan.
BAI01.01
Verify that the Project Plan is in compliance with
company procedures.
BAI01.01 12
Verify that employees involved in the design and
build of the application system have been
properly trained to configure / customize the
system and ability to use the system when
performing tests.
BAI01.12 4
Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
Verify that project design / blueprint meetings
have been held to develop the System
Development Plan and Data Conversion Plan by
obtaining the meeting minutes.
BAI02.01,
BAI03.01
10, 14
Verify that the appropriate employees are
participating in the project design meetings:
- Project team
- System implementors
- Subject matter experts
- Super users
- End users
- Network administrators
- System administrators
- Security administrators
BAI01.12,
BAI03.01
10, 14
Verify that a System Development Plan has been
created and includes:
- System documentation
- System specification
- User specification
- Functional requirements
- Reporting requirements
- Customization
- Security and internal controls requirements
- Interfaces with other systems (consider impact
on inter-operability)
- Process and data flowcharts
- Data storage
- Issue identification and resolution
- Constraints
- Backout / Contingency Plan
BAI02.01,
BAI03.01,
BAI03.02,
BAI03.03
5, 11
& Build
Verify that security and internal control
requirements consider the following:
- access rights based on least privilege
- segregation of duties
- system authorizations
- edit checks
- audit logs
- input checks
- matching checks
- sequence checks
- duplication checks
- output
- exception reporting
BAI02.01,
BAI03.01,
BAI03.02,
BAI03.03
5, 11
Verify that the System Development Plan has
been approved by the Project Team Lead, Project
Sponsor, and System Implementor.
BAI03.01
Verify that a Data Conversion Plan has been
created and includes:
- Identification of data to be transferred /
converted
- Data cleansing procedures
- Error tolerances
- Data mapping
- Data extraction
- Data transfer
- Data validation test plans
- Issue identification and resolution
- Conversion timeline
- Conversion tasks included in go-live checklist
- Required approvals
BAI03.01,
BAI03.02,
BAI03.06,
BAI07.01
11
Verify that the Project Team has developed the
data map. Determine if data map is in sufficient
detail to assist IT in converting the data and for
testers in testing the system.
- flow chart of data movement
- identification of common data elements
- identification of field mapping between old
system and new system
- determine file format and layout for import: field
length, format, name, values, etc.
- translation of data values
- identification of confidential / key data
BAI03.02,
BAI07.02
Assess whether the data to be converted is
confidential and whether appropriate security
measures have been implemented to protect that
data where it resides (e.g. dev / test / prod
environments).
BAI03.02,
BAI07.04
Verify that the Data Conversion Plan has been
approved by the Project Team Lead, Project
Sponsor, and System Implementor.
BAI02.04
Verify that the System Development Plan and
Data Conversion Plan are in compliance with
company procedures.
BAI02.01 12
Verify that the System Development Plan and
Data Conversion Plan have been discussed with
applicable employees involved in implementing
these plans.
BAI01.08
Verify that any servers and operating systems
pertaining to the new system have been
configured according to the company's
configuration management procedures.
- default and unncecssary accounts / services are
disabled, if possible
- disable local admin account
- default passwords are changed and made
complex for admin accounts, application /
operating systems and any other new networked
device
- limiting admin privileges to those who have a
business need to modify configuration
- enable logging
BAI01.09,
BAI03.05
11
Verify that any servers and operating systems
pertaining to the new system have been secured
according to the company's security procedures.
Examples are:
- anti-virus / malware on server
- password management enabled (log-on
attempts, password change timeframe, password
history)
- admins have different passwords for admin
accounts and non-admin accounts
- disabling LM hashes
- encryption
- network segmentation
- enable firewall
- remote administration of servers over secure
channels
BAI01.09,
BAI03.05
11
Verify that changes made to current systems
(setting up interfaces, extracting data, importing
data) follow the company's change management
procedures.
- changes are documented
- changes are tested
- changes are approved by business and IT prior
to migration into production environment
- quality assurance review
BAI01.09,
BAI03.05,
BAI06
11
Verify that the data cleansing has been
performed by determining if the Project Team
verified that:
- All mandatory fields are populated
- All records are present
- Default or dummy values cannot be inserted
where there is missing data
- Data is complete
- No duplication of data fields
BAI07.02
For data that has not been cleansed, determine
potential risks and impacts to the project.
Determine if error tolerances have been
evaluated against the approved thresholds stated
in the Data Conversion Plan.
BAI07.02
Verify that the Project Team has verified the
accuracy, integrity and completeness of data
conversion to the test system by reviewing test
documentation.
BAI07.02
Verify that data converted to the test system is
complete, accurate, and has integrity.
- batch and control totals
- check sums / digits
- range checks
- date and time stamps
- use a data analysis tool to compare a sample of
data from the old system and the new system
- verify a test sample of data to source
documentation
BAI03.05,
BAI03.06,
BAI07.02
11, 13
Verify that the Project Team addresses any
errors or omissions identified as part of testing
the data conversion.
BAI07.02
Verify that appropriate controls are in place to
prevent or detect any data manipulation during
the conversion process and that they are
operating effectively.
BAI03.05,
BAI07.02
11
Verify that the Project Team has maintained
documentation of process design, configuration,
and customization.
- flow charts
- screenshots
- exhibits of code
- online and batch operating instructions
- system narratives
- configuration baselines
BAI03.05,
BAI07.02,
BAI10.03
11
At the end of the system build phase, verify that
the Project Team has created the User Manual.
The manual may include:
- description of the system
- use of the system
- input data and parameters
- output data
- operating procedures
- error identification and resolution
- user responsibilities related to security, privacy
and internal controls
BAI07.02 11
At the end of the system build phase, verify that
the Project Team has created the Operations and
Maintenance Manual. This manual may include:
- description of software
- instructions to operate software
- technical flow charts
- exhibits of code
- technical specifications
- security specifications
- description of internal controls
- description of non-routine procedures and
security requirements
- procedures for error resolution
- maintenance procedures
- configuration baselines
BAI01.09,
BAI02.01,
BAI03.03,
BAI03.05,
BAI03.10,
BAI10.03
11
Determine if any change orders have been
approved. If so, verify if the project budget cost,
labor hours and timeline have been updated.
Determine if there is any risk due to scope creep.
BAI01.11,
BAI03.09
Verify that any milestone(s) achieved during this
phase have been reviewed and approved by the
Project Sponsor.
BAI01.08,
BAI01.11
Verify that the Project Lead has reviewed the
Project Plan to ensure that the project is on target
with budgets, milestones and timeline. Verify that
Project Lead has reassessed the project risks for
the activities in this phase. Verify the Project
Lead has updated the Project Plan, if necessary.
BAI01.10,
BAI01.11,
BAI02.03
Review the project actual cost, labor hours and
timeline in comparison with the budget.
Determine if there are any risks that may impact
the project in the testing phase (e.g. going over
budget in the design and build phase may lead to
decreasing hours dedicated to testing system).
BAI01.05
Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
Verify that a Test Plan has been created and
includes the following:
- testing methodology, including types of tests to
be performed (e.g. functional, unit, integration,
end-to-end, acceptance, performance, parallel /
pilot, volume / stress, regression, quality
assurance, penetration, scanning, fuzzing, testing
for failures, security)
- Testing procedures
- Testing templates / scripts (purpose, procedure,
conclusion, sign-off)
- Testing documentation to be maintained, along
with retention period
- Reporting, tracking and remediating issues
identified during testing
- Acceptance and approval of test results
- test location and preparation
BAI01.09,
BAI03.06,
BAI03.07,
BAI07.01,
BAI07.03
11
Verify that the Test Plan is in compliance with
company policy and procedures.
BAI01.01,
BAI03.07,
BAI07.03
12
Verify that the Test Plan has been reviewed and
approved by the Project Leader and Project
Sponsor.
BAI07.03
Verify that there is a separate test environment
from the development and production
environment.
BAI03.07,
BAI07.04
12
Verify that the test environment simluates the
production environment.
BAI03.07,
BAI07.04
Verify that the Project Team has identified all
employees to be used in the testing process.
Verify that these employees:
- have been provided training on how to use the
system
- have been provided a copy of the Test Plan
- understand their roles and responsibilities
regarding testing the system
- have the availability to perform the required test
scripts and retest if necessary
- are from business areas in the company that will
be using the system
BAI01.12,
BAI03.08,
BAI07.03
4
Verify that test scripts have been created for all
tests that are to be performed and have been
mapped back to System Development Plan
specifications.
BAI01.09,
BAI03.06,
BAI03.07,
BAI07.03
11
Verify that the test scripts created are testing for
failures in the process or negative testing where
users can't perform functions that are beyond
their authorization or responsibilities.
BAI03.06,
BAI07.05
11
Verify that test scripts include testing of security
and system controls.
11
Verify that the Project Team is tracking the
performance and completion of all test scripts.
BAI03.08,
BAI07.05
11
Verify that the Project Team is tracking all issues
identified on a log where the issue is assigned to
an owner for resolution. Verify that the
remediated issue is retested with a satisfactory
result.
BAI03.06,
BAI03.08,
BAI07.05
11
Verify that the Project Team is tracking testing
documentation and ensuring it is being
maintained for all test scripts.
BAI01.09,
BAI03.08,
BAI07.05
11
Select a sample of test scripts and observe the
Testers performing the tests. Verify that the
Testers are performing the tests in accordance
with the Test Plan.
Select a sample of test scripts and reperform.
Compare the audit results to the Tester's results.
Use a data analysis tool to identify any gaps in
the security or internal control requirements.
Verify that the User Manual and / or Operations
Manual have been updated for any changes that
occurred during the testing phase to ensure
complete and accurate system documentation.
BAI02.01,
BAI03.10
11, 12
Determine if any change orders have been
approved. If so, verify if the project budget cost,
labor hours and timeline have been updated.
Determine if there is any risk due to scope creep.
BAI01.11,
BAI03.09
Verify that any milestone(s) achieved during this
phase have been reviewed and approved by the
Project Sponsor.
BAI01.08,
BAI01.11
Verify that the Project Lead has reviewed the
Project Plan to ensure that the project is on target
with budgets, milestones and timeline. Verify that
Project Lead has reassessed the project risks for
the activities in this phase. Verify the Project
Lead has updated the Project Plan, if necessary.
BAI01.10,
BAI01.11
Review the project actual cost, labor hours and
timeline in comparison with the budget.
Determine if there are any risks that may impact
the project in the go-live phase.
BAI01.05
Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
Verify that an Implementation Plan has been
created and includes:
- implementation schedule
- development of production environment
- testing of production environment
- securing production environment
- data conversion
- data back-up
- contingency / fallback plan
- approvals to go live
- resolution of any issues identified prior to go-live
- acceptance of any unresolved issues identified
- tracking go-live tasks (e.g. checklist)
- go / no-go criteria
BAI01.09,
BAI07.01,
BAI07.06
11
Verify that the Implementation Plan is in
compliance with company policy and procedures.
BAI01.01 12
ersion
Verify that the Implementation Plan has been
reviewed and approved by the Project Lead,
Project Sponsor, and System Implementor.
BAI07.01 11
Evaluate the implementation schedule and
determine if it is reasonable and achievable.
Verify that the data in the current system is
backed up prior to converting data to the new
system.
BAI07.02
Verify that data converted to the production
system is complete, accurate, and has integrity.
- batch and control totals
- check sums / digits
- range checks
- date and time stamps
- user reconciliations / data validation
- use a data analysis tool to compare a sample of
data from the old system and the new system
- verify a test sample of data to source
documentation
BAI01.09,
BAI07.02
11
Verify that appropriate controls are in place to
prevent or detect any data manipulation during
the conversion process and that they are
operating effectively.
BAI01.09,
BAI07.02
11
Verify that the Project Team addresses any
errors or omissions identified as part of testing
the data conversion prior to going live with the
system.
BAI01.09,
BAI07.02
11
Verify that all test scripts have been completed
and any issues identified during the testing phase
have been resolved prior to the system going live.
BAI01.09 11
Verify that tests scripts performed on the
production environment have been completed
and any issues identified have been resolved
prior to the system going live.
BAI01.09 11
Verify that unresolved issues have been identified
by the Project Lead and are being tracked.
BAI07.05
Verify that any unresolved issues that will not be
addressed prior to go live will not have a
significant impact on the production system.
BAI07.05
Verify that unresolved issues have been reviewed
and approved by the Project Sponsor and Project
Steering Committee prior to going live.
BAI07.05
Verify that the production environment has the
appropriate security controls to prevent access to
the system by administrators or the system
implementors once the system is live.
BAI01.09 11
Verify that the Security group has reviewed the
security specifications of the system and has
approved it to go-live.
BAI01.09 11
Verify that the system owner has reviewed and
approved the access rights of end users and
assignment of user groups.
BAI01.09 11
Verify that the Project Lead has communicated
the results of the system build and testing phases
to the Project Steering Committee, along with any
issues that are expected to be unresolved by the
go-live date.
11
Verify that the Project Steering Committee has
approved the system to go live.
3
Verify that all tasks on the go-live checklist have
been signed-off on prior to going live.
BAI01.09
Verify that any milestone(s) achieved during this
phase have been reviewed and approved by the
Project Sponsor.
BAI01.08,
BAI01.11
Verify that the Project Lead has reviewed the
Project Plan to ensure that the project is on target
with budgets, milestones and timeline. Verify that
Project Lead has reassessed the project risks for
the activities in this phase. Verify the Project
Lead has updated the Project Plan, if necessary.
BAI01.10,
BAI01.11
Review the project actual cost, labor hours and
timeline in comparison with the budget.
Determine if there are any risks that may impact
the project and consider discussing with the
Project Steering Committee.
BAI01.05
Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
Verify that the Project Team has developed a
training program based off of the User Manual
and Operations Manual.
BAI08.04 4
Verify that end users, super users, and technical
support personnel are properly trained on the new
system.
BAI08.04 4, 14
Review training schedule and attendance sheets
to determine that users attended the training.
Verify that surveys were provided to users
regarding feedback on the training materials.
Verify that comments are incorporated into the
training program and / or User Manual.
14
Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
Verify that management has committed the
appropriate additional resources to support the
system and respond to end users' needs post go-
live for a predetermined amount of time (e.g 3
months).
BAI03.10,
BAI07.07
Verify that in-house support personnel have
stated service level agreement metrics to meet
the needs of the end users timely.
BAI01.06,
BAI03.11
13
Determine if the level of support is meeting its
SLA metrics.
BAI01.06,
BAI03.10,
BAI03.11
Determine if management will be relying on
vendor support for the system. If so, obtain and
review support contract for terms and agreement,
confidentiality, and access rights. Determine
level of support during an incident / disaster.
BAI03.11
Verify that all support personnel have received
training on the Operations Manual.
BAI02.01
Verify that any changes made to the system by
support personnel follow the company's change
management policy and procedures.
BAI03.10,
BAI06
11
Verify that there is a process in place to update
the Operations Manual based on changes
made.Verify that there is a process in place to
update the Operations Manual based on changes
made.
BAI03.10 11
Verify that the system is included in the patch
management policy and procedures.
BAI03.10 11, 12
Verify that the hardware and software associated
with this implementation project have been
included in the company's inventory listing of IT
assets.
BAI03.04,
BAI09.01
Verify that the Project Lead has performed a post
implementation assessment. The assessment
should include:
- determination if project objectives were
achieved
- assessment on cost benefit analysis presented
in business case
- assessment of project budgets (cost, labor
hours, timeline) in comparison with actual results
- project metrics, KPIs
- feedback from end users on acceptance of
system
- identifying lessons learned
BAI01.05,
BAI01.06,
BAI01.11,
BAI01.13,
BAI07.08
11, 13, 14
Evaluate the lessons learned identified by the
Project Lead and determine if they address the
findings noted in the audit memorandums issued.
BAI01.13,
BAI07.08
For any unresolved issues, verify that they have
been assigned an owner and estimated
completion date. Verify that unresolved issues
are tracked and closed out timely.
BAI01.13,
BAI07.08
Verify that the Project Lead presented the post
implementation assessment results to the Project
Steering Committee.
BAI01.06,
BAI01.11
11, 13, 16, 17
Verify that project documentation is properly
secured and retained according to retention
policy and procedures.
BAI01.14
Verify that the Project Lead has obtained
approval from the Project Steering Committee to
close the project.
BAI01.14
Verify that the ITGC and business process
internal control documentation (e.g. narrative,
flow charts, matrices) have been created or
modified to accommodate the new system.
11
Verify if policies, procedures, and internal controls
have been revised based on the project's lessons
learned.
11, 12, 17
Test the internal controls to verify that they are
operating effectively.
11
a. Test the ITGC controls.
b. Test the Business Process controls.
ose Out
Verify that the new system has been added to the
Disaster Recovery Procedures Manual. (Note:
based on the criticality of the system, the
company may decide not to include it in the DRP.
In this situation, assess if the system owner
needs to consider a business continuity plan).
BAI09.02 11
20 Critical
Security
Controls
CSC 17-3
CSC 3-1, 3-3,
3-4, 12-1, 12-3,
12-4
CSC 3-7, 12-6,
12-8, 12-9, 17-
1, 19-4
CSC 6-6
CSC6-3
CSC 6-1
CSC 1 & 2
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
A1 Obtain and examine policy, procedures and
templates. Verify that they address the following:
- Business Case Analysis
- Project risk assessment
- Roles and responsibilities
- System documentation
- System specification
- User specification
- Security specification
- System development plan
- Change requests
- Developing internal controls
- Project issue procedures
- Data conversion plan
- Test plan
- Pre Go-live plan
- Training
- Organizational change management plan
- Project monitoring & status updates
- Post implementation project review
A2 Examine training records and verify that
employees on the project team have been trained
on company IT project management procedures.
A3 Verify that a Project Steering Committee exists,
as evidenced by the committee charter.
A4 A member of the Audit Team should attend the
Project Steering Committee meetings.
A5 Obtain and examine Project Steering Committee
meeting minutes to verify that committee is
reviewing project status, achievement of project
milestones, monitoring budget-to-actual costs,
and results of project measurements (i.e. KPIs).
Audit Procedures
Section A - Governance
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
A6 Verify that the Project Team Lead is submitting
status reports on a periodic basis and any other
required documentation to the Project Steering
Committee throughout the lifecycle of the project.
Status reports should contain budget-to-actual
comparison & variation analysis, monitoring of
milestones & KPIs, description of achievements
and any issues effecting the progress of the
project.
A7 Verify that the Project Steering Committee has
reviewed the post implementation project results
report and develops an Action Plan to address
any actionable lessons learned.
A8 A member of the Audit Team should attend the
Project Team status meetings.
A9 Examine the Project Team's status meeting
minutes and verify that the team discusses tasks
completed / to be completed and issues identified
/ assigned / resolved.
A10 Verify that an organizational change
communication plan has been developed and
should address:
- Assessing company's readiness to accept
change
- Educating end users on the reason and timing
behind the change
- Roles and responsibilities of organizational
change management team
- Vision and strategy for change
- Communication of vision and strategy to end
users
- Remove barriers / silos that inhibit end user
acceptance
- Short-term and long-term goals identified and
monitored
- Identify training needs
- Other communication activities (newsletter,
posters, intranet site, etc.)
- Continuous feedback
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
A11 Verify that an external communication plan has
been created to provide information to customers
and / or business partners regarding the
implementation of the system (if system will be
used by these parties).
A12 Verify that the Communication Plan has been
approved by the Project Sponsor.
A13 Verify that the communication plan has been
implemented.
A14 Interview a sample of employees to determine the
effectiveness of the communication plan and end
user acceptance of system.
B1 Verify that a Business Case Report has been
developed and approved by the appropriate level
of management and governance committee(s)
(e.g. IT Steering Committee, Capital Assets
Committee, etc.).
B2 Verify that the Business Case Report includes:
- Current state of business process, identifying
any control weaknesses
- Expected future state of business process
(consider future growth)
- Addresses corporate / department strategic
goals
- Description of the application systems reviewed
(e.g. proof of concepts, demos)
- Reason behind system recommended to be
implemented (e.g. feasibility study)
- Cost benefit analysis (dollar & labor cost /
benefits, other benefits)
- Potential risks of the project and significance of
risks
- Potential impact to critical systems
- Regulatory concerns / approvals
- End User feedback
Section B - Pre-Implementation: Business Case and Project Planning
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
B3 Verify that a Request for Proposal was prepared
and sent to selected vendors.
B4 Verify that Vendor proposals were reviewed for:
- Reputation and experience of vendor
- Experience of vendor personnel
- Proposal content met scope of the project
- Rates for time and expense
- Ability to respond to system vulnerabilities and
provide patches to customers timely
B5 Verify that the vendor contract addresses the
following:
- Vendor expectations
- Deliverables
- System requirements
- Warranties and liabilities
- Rates for time and expense (pymt terms based
on achievement of milestones)
- Change request process
- Confidentiality / Non-Disclosure
- Terms and conditions
- Project timelines and milestones
- Insurance requirements
- Adherence to company policies and procedures
in developing system
- Terms to restore back to current system
B6 Verify that the vendor contract has been
approved by the appropriate level of
management.
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
B7 Verify that a Project Plan has been created and
includes:
- Project objectives
- Project scope
- Project risk assessment
- Identifies stakeholders
- Project Sponsor
- Team members
- Roles and responsibilities
- Budgets and timelines
- Project milestones and KPIs
- Communication plan
- Deliverables
- Change in scope procedures
B8 Verify that the Project Plan has been approved by
the Project Team Lead and Project Sponsor.
B9 Verify that a project kick-off meeting has been
held to review the Project Plan with team
members by obtaining the meeting minutes.
B10 Assess project timelines and determine if timeline
is reasonably acheivable.
B11 Assess project pesonnel resources for:
- Availability
- Cross functional respresentation of all
departments impacted by system
- Experience
B12 Review prior project lessons learned and
determine if they have been properly incorporated
into the Project Plan.
B13 Verify that the Project Plan is in compliance with
company procedures.
B14 Verify that employees involved in the design and
build of the application system have been
properly trained to configure / customize the
system and ability to use the system when
performing tests.
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
B15 Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
C1 Verify that project design / blueprint meetings
have been held to develop the System
Development Plan and Data Conversion Plan by
obtaining the meeting minutes.
C2 Verify that the appropriate employees are
participating in the project design meetings:
- Project team
- System implementors
- Subject matter experts
- Super users
- End users
- Network administrators
- System administrators
- Security administrators
C3 Verify that a System Development Plan has been
created and includes:
- System documentation
- System specification
- User specification
- Functional requirements
- Reporting requirements
- Customization
- Security and internal controls requirements
- Interfaces with other systems (consider impact
on inter-operability)
- Process and data flowcharts
- Data storage
- Issue identification and resolution
- Constraints
- Backout / Contingency Plan
Section C - Pre-Implementation: System Development -- Design & Build
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
C4 Verify that security and internal control
requirements consider the following:
- access rights based on least privilege
- segregation of duties
- system authorizations
- edit checks
- audit logs
- input checks
- matching checks
- sequence checks
- duplication checks
- output
- exception reporting
C5 Verify that the System Development Plan has
been approved by the Project Team Lead, Project
Sponsor, and System Implementor.
C6 Verify that a Data Conversion Plan has been
created and includes:
- Identification of data to be transferred /
converted
- Data cleansing procedures
- Error tolerances
- Data mapping
- Data extraction
- Data transfer
- Data validation test plans
- Issue identification and resolution
- Conversion timeline
- Conversion tasks included in go-live checklist
- Required approvals
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
C7 Verify that the Project Team has developed the
data map. Determine if data map is in sufficient
detail to assist IT in converting the data and for
testers in testing the system.
- flow chart of data movement
- identification of common data elements
- identification of field mapping between old
system and new system
- determine file format and layout for import: field
length, format, name, values, etc.
- translation of data values
- identification of confidential / key data
C8 Assess whether the data to be converted is
confidential and whether appropriate security
measures have been implemented to protect that
data where it resides (e.g. dev / test / prod
environments).
C9 Verify that the Data Conversion Plan has been
approved by the Project Team Lead, Project
Sponsor, and System Implementor.
C10 Verify that the System Development Plan and
Data Conversion Plan are in compliance with
company procedures.
C11 Verify that the System Development Plan and
Data Conversion Plan have been discussed with
applicable employees involved in implementing
these plans.
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
C12 Verify that any servers and operating systems
pertaining to the new system have been
configured according to the company's
configuration management procedures.
- default and unncecssary accounts / services are
disabled, if possible
- disable local admin account
- default passwords are changed and made
complex for admin accounts, application /
operating systems and any other new networked
device
- limiting admin privileges to those who have a
business need to modify configuration
- enable logging
C13 Verify that any servers and operating systems
pertaining to the new system have been secured
according to the company's security procedures.
Examples are:
- anti-virus / malware on server
- password management enabled (log-on
attempts, password change timeframe, password
history)
- admins have different passwords for admin
accounts and non-admin accounts
- disabling LM hashes
- encryption
- network segmentation
- enable firewall
- remote administration of servers over secure
channels
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
C14 Verify that changes made to current systems
(setting up interfaces, extracting data, importing
data) follow the company's change management
procedures.
- changes are documented
- changes are tested
- changes are approved by business and IT prior
to migration into production environment
- quality assurance review
C15 Verify that the data cleansing has been performed
by determining if the Project Team verified that:
- All mandatory fields are populated
- All records are present
- Default or dummy values cannot be inserted
where there is missing data
- Data is complete
- No duplication of data fields
C16 For data that has not been cleansed, determine
potential risks and impacts to the project.
Determine if error tolerances have been
evaluated against the approved thresholds stated
in the Data Conversion Plan.
C17 Verify that the Project Team has verified the
accuracy, integrity and completeness of data
conversion to the test system by reviewing test
documentation.
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
C18 Verify that data converted to the test system is
complete, accurate, and has integrity.
- batch and control totals
- check sums / digits
- range checks
- date and time stamps
- use a data analysis tool to compare a sample of
data from the old system and the new system
- verify a test sample of data to source
documentation
C19 Verify that the Project Team addresses any errors
or omissions identified as part of testing the data
conversion.
C20 Verify that appropriate controls are in place to
prevent or detect any data manipulation during
the conversion process and that they are
operating effectively.
C21 Verify that the Project Team has maintained
documentation of process design, configuration,
and customization.
- flow charts
- screenshots
- exhibits of code
- online and batch operating instructions
- system narratives
- configuration baselines
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
C22 At the end of the system build phase, verify that
the Project Team has created the User Manual.
The manual may include:
- description of the system
- use of the system
- input data and parameters
- output data
- operating procedures
- error identification and resolution
- user responsibilities related to security, privacy
and internal controls
C23 At the end of the system build phase, verify that
the Project Team has created the Operations and
Maintenance Manual. This manual may include:
- description of software
- instructions to operate software
- technical flow charts
- exhibits of code
- technical specifications
- security specifications
- description of internal controls
- description of non-routine procedures and
security requirements
- procedures for error resolution
- maintenance procedures
- configuration baselines
C24 Determine if any change orders have been
approved. If so, verify if the project budget cost,
labor hours and timeline have been updated.
Determine if there is any risk due to scope creep.
C25 Verify that any milestone(s) achieved during this
phase have been reviewed and approved by the
Project Sponsor.
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
C26 Verify that the Project Lead has reviewed the
Project Plan to ensure that the project is on target
with budgets, milestones and timeline. Verify that
Project Lead has reassessed the project risks for
the activities in this phase. Verify the Project
Lead has updated the Project Plan, if necessary.
C27 Review the project actual cost, labor hours and
timeline in comparison with the budget.
Determine if there are any risks that may impact
the project in the testing phase (e.g. going over
budget in the design and build phase may lead to
decreasing hours dedicated to testing system).
C28 Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
D1 Verify that a Test Plan has been created and
includes the following:
- testing methodology, including types of tests to
be performed (e.g. functional, unit, integration,
end-to-end, acceptance, performance, parallel /
pilot, volume / stress, regression, quality
assurance, penetration, scanning, fuzzing, testing
for failures, security)
- Testing procedures
- Testing templates / scripts (purpose, procedure,
conclusion, sign-off)
- Testing documentation to be maintained, along
with retention period
- Reporting, tracking and remediating issues
identified during testing
- Acceptance and approval of test results
- test location and preparation
D2 Verify that the Test Plan is in compliance with
company policy and procedures.
Section D - Pre-Implemetntation: Test
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
D3 Verify that the Test Plan has been reviewed and
approved by the Project Leader and Project
Sponsor.
D4 Verify that there is a separate test environment
from the development and production
environment.
D5 Verify that the test environment simluates the
production environment.
D6 Verify that the Project Team has identified all
employees to be used in the testing process.
Verify that these employees:
- have been provided training on how to use the
system
- have been provided a copy of the Test Plan
- understand their roles and responsibilities
regarding testing the system
- have the availability to perform the required test
scripts and retest if necessary
- are from business areas in the company that will
be using the system
D7 Verify that test scripts have been created for all
tests that are to be performed and have been
mapped back to System Development Plan
specifications.
D8 Verify that the test scripts created are testing for
failures in the process or negative testing where
users can't perform functions that are beyond
their authorization or responsibilities.
D9 Verify that test scripts include testing of security
and system controls.
D10 Verify that the Project Team is tracking the
performance and completion of all test scripts.
D11 Verify that the Project Team is tracking all issues
identified on a log where the issue is assigned to
an owner for resolution. Verify that the
remediated issue is retested with a satisfactory
result.
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
D12 Verify that the Project Team is tracking testing
documentation and ensuring it is being
maintained for all test scripts.
D13 Select a sample of test scripts and observe the
Testers performing the tests. Verify that the
Testers are performing the tests in accordance
with the Test Plan.
D14 Select a sample of test scripts and reperform.
Compare the audit results to the Tester's results.
D15 Use a data analysis tool to identify any gaps in
the security or internal control requirements.
D16 Verify that the User Manual and / or Operations
Manual have been updated for any changes that
occurred during the testing phase to ensure
complete and accurate system documentation.
D17 Determine if any change orders have been
approved. If so, verify if the project budget cost,
labor hours and timeline have been updated.
Determine if there is any risk due to scope creep.
D18 Verify that any milestone(s) achieved during this
phase have been reviewed and approved by the
Project Sponsor.
D19 Verify that the Project Lead has reviewed the
Project Plan to ensure that the project is on target
with budgets, milestones and timeline. Verify that
Project Lead has reassessed the project risks for
the activities in this phase. Verify the Project
Lead has updated the Project Plan, if necessary.
D20 Review the project actual cost, labor hours and
timeline in comparison with the budget.
Determine if there are any risks that may impact
the project in the go-live phase.
D21 Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
Section E - Pre-Implementation: System Pre Go-live & Data Conversion
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
E1 Verify that an Implementation Plan has been
created and includes:
- implementation schedule
- development of production environment
- testing of production environment
- securing production environment
- data conversion
- data back-up
- contingency / fallback plan
- approvals to go live
- resolution of any issues identified prior to go-live
- acceptance of any unresolved issues identified
- tracking go-live tasks (e.g. checklist)
- go / no-go criteria
E2 Verify that the Implementation Plan is in
compliance with company policy and procedures.
E3 Verify that the Implementation Plan has been
reviewed and approved by the Project Lead,
Project Sponsor, and System Implementor.
E4 Evaluate the implementation schedule and
determine if it is reasonable and achievable.
E5 Verify that the data in the current system is
backed up prior to converting data to the new
system.
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
E6 Verify that data converted to the production
system is complete, accurate, and has integrity.
- batch and control totals
- check sums / digits
- range checks
- date and time stamps
- user reconciliations / data validation
- use a data analysis tool to compare a sample of
data from the old system and the new system
- verify a test sample of data to source
documentation
E7 Verify that appropriate controls are in place to
prevent or detect any data manipulation during
the conversion process and that they are
operating effectively.
E8 Verify that the Project Team addresses any errors
or omissions identified as part of testing the data
conversion prior to going live with the system.
E9 Verify that all test scripts have been completed
and any issues identified during the testing phase
have been resolved prior to the system going live.
E10 Verify that tests scripts performed on the
production environment have been completed
and any issues identified have been resolved
prior to the system going live.
E11 Verify that unresolved issues have been identified
by the Project Lead and are being tracked.
E12 Verify that any unresolved issues that will not be
addressed prior to go live will not have a
significant impact on the production system.
E13 Verify that unresolved issues have been reviewed
and approved by the Project Sponsor and Project
Steering Committee prior to going live.
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
E14 Verify that the production environment has the
appropriate security controls to prevent access to
the system by administrators or the system
implementors once the system is live.
E15 Verify that the Security group has reviewed the
security specifications of the system and has
approved it to go-live.
E16 Verify that the system owner has reviewed and
approved the access rights of end users and
assignment of user groups.
E17 Verify that the Project Lead has communicated
the results of the system build and testing phases
to the Project Steering Committee, along with any
issues that are expected to be unresolved by the
go-live date.
E18 Verify that the Project Steering Committee has
approved the system to go live.
E19 Verify that all tasks on the go-live checklist have
been signed-off on prior to going live.
E20 Verify that any milestone(s) achieved during this
phase have been reviewed and approved by the
Project Sponsor.
E21 Verify that the Project Lead has reviewed the
Project Plan to ensure that the project is on target
with budgets, milestones and timeline. Verify that
Project Lead has reassessed the project risks for
the activities in this phase. Verify the Project
Lead has updated the Project Plan, if necessary.
E22 Review the project actual cost, labor hours and
timeline in comparison with the budget.
Determine if there are any risks that may impact
the project and consider discussing with the
Project Steering Committee.
E23 Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
Section F - Pre-Implementation: Training
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
F1 Verify that the Project Team has developed a
training program based off of the User Manual
and Operations Manual.
F2 Verify that end users, super users, and technical
support personnel are properly trained on the new
system.
F3 Review training schedule and attendance sheets
to determine that users attended the training.
F4 Verify that surveys were provided to users
regarding feedback on the training materials.
Verify that comments are incorporated into the
training program and / or User Manual.
F5 Prepare an audit memorandum of the results of
this phase of testing and distribute to the Project
Team and Project Sponsor.
G1 Verify that management has committed the
appropriate additional resources to support the
system and respond to end users' needs post go-
live for a predetermined amount of time (e.g 3
months).
G2 Verify that in-house support personnel have
stated service level agreement metrics to meet
the needs of the end users timely.
G3 Determine if the level of support is meeting its
SLA metrics.
G4 Determine if management will be relying on
vendor support for the system. If so, obtain and
review support contract for terms and agreement,
confidentiality, and access rights. Determine
level of support during an incident / disaster.
G5 Verify that all support personnel have received
training on the Operations Manual.
G6 Verify that any changes made to the system by
support personnel follow the company's change
management policy and procedures.
Section G - Post Implementation: Support & Maintenance
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
G7 Verify that there is a process in place to update
the Operations Manual based on changes
made.Verify that there is a process in place to
update the Operations Manual based on changes
made.
G8 Verify that the system is included in the patch
management policy and procedures.
G9 Verify that the hardware and software associated
with this implementation project have been
included in the company's inventory listing of IT
assets.
H1 Verify that the Project Lead has performed a post
implementation assessment. The assessment
should include:
- determination if project objectives were
achieved
- assessment on cost benefit analysis presented
in business case
- assessment of project budgets (cost, labor
hours, timeline) in comparison with actual results
- project metrics, KPIs
- feedback from end users on acceptance of
system
- identifying lessons learned
H2 Evaluate the lessons learned identified by the
Project Lead and determine if they address the
findings noted in the audit memorandums issued.
H3 For any unresolved issues, verify that they have
been assigned an owner and estimated
completion date. Verify that unresolved issues
are tracked and closed out timely.
H4 Verify that the Project Lead presented the post
implementation assessment results to the Project
Steering Committee.
Section H - Post Implementation: Review of Project Results & Close Out
Testing Comments / Conclusions W/P Ref Findings Preparer
Sign-off
Reviewer Sign-
off
Audit Procedures
H5 Verify that project documentation is properly
secured and retained according to retention policy
and procedures.
H6 Verify that the Project Lead has obtained
approval from the Project Steering Committee to
close the project.
I1 Verify that the ITGC and business process
internal control documentation (e.g. narrative,
flow charts, matrices) have been created or
modified to accommodate the new system.
I2 Verify if policies, procedures, and internal controls
have been revised based on the project's lessons
learned.
Test the internal controls to verify that they are
operating effectively.
a. Test the ITGC controls.
b. Test the Business Process controls.
I4 Verify that the new system has been added to the
Disaster Recovery Procedures Manual. (Note:
based on the criticality of the system, the
company may decide not to include it in the DRP.
In this situation, assess if the system owner
needs to consider a business continuity plan).
Secion I - Post Implementation: Internal Controls Assessment
I3
Audit Name: ________________________________
Evaluation Criteria Excellent Good Fair Poor
Not applicable /
Don't Know
Objectivity of auditor team
Understanding the business & your department
Technical proficiency of audit team
Uses technology appropriately
Professionalism of audit team
Communication skills of audit team
Interpersonal skills of audit team
Works well with your team
Helps you manage and implement change
Notification of the audit purpose and scope
Audit focused on key areas & risks
Department's concerns and perspective considered
Duration of the audit
Level of creativity
Usefulness of the audit
Disruption of activities was minimal
Sharing of best practices
Feedback of findings during the audit
Timeliness of the audit report
Clarity of the audit report
Accuracy of the audit findings
Value of the audit recommendations
Provides workable solutions for audit recommendations
Timely follow-up on corrective action
Improved
Significantly Improved
Stayed
the same Declined
Declined
significantly
How has the quality of service you received changed from
previous audits you experienced?
Internal Audit Quality Assurance
In an effort to provide continuous improvement in the service we provide to you and the organization, would you please take a
few moments to complete this short survey and return it promptly as indicated below? Thank you!
Independence
Professional Proficiency
Scope of Work
Performance of Audit Work
Was there anything about the audit you especially liked?
Please return survey to: ________________________
Are there any recommendations for improvement that you would like us to consider?
Was there anything about the audit you especially disliked?
Additional Comments:
Name: _____________________________________
Date: ______________________________________
Below is a list of resources that may be used during an SDLC audit:
ISACA
• COBIT 5 Enabling Processes
• COBIT 5 - Governance and Management Practices Activities (COBIT 5 Toolkit)
• COBIT 5 for Assurance
• Systems Development and Project Management Audit / Assurance Program (based off
of COBIT 4.1)
IIA
• GTAG 12: Auditing IT Projects
• GTAG 14: Auditing User-developed Applications
• GTAG 5: Managing and Auditing Privacy Risks
• GTAG 8: Auditing Application Controls
• GAIT for Business and IT Risk
• GAIT for IT General Control Deficiency Assessment
• GAIT Methodology
• Top 10 System Implementation Audit Considerations (by PwC)
COSO Internal Control -- Integrated Framework
National Institute of Standards and Technology (NIST)
• SP 800-53 rev.4: Security and Privacy Controls for Federal Information Systems and
Organizations.
• SP 800-64 rev.2: Security Considerations in the System Development Life Cycle
Twenty Critical Security Controls (maintained by Council on Cyber Security)
Project Management Body of Knowledge (aka PMBOK - maintained by Project Management
Institute)
AuditNet (subscription based)
Protiviti's Knowledgeleader (subscription based)
{a}
{b}
{c}
{d}
{e}
{f}
{g}
{h}
{i}
{j}
{k}
{l}
{m}
{n}
{o}
{p}
{q}
{r}
{s}
{t}
{u}
{v}
{w}
{x}
Tickmarks
{y}
{z}

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SDLC Audit Planning

  • 1. Audit Step W/P Ref Preparer Sign-off Reviewer Sign-off 1. Prepare the audit announcement / notification letter informing applicable people of the estimated start date of the audit, the objective and the scope. E-mail it to addressee(s). Maintain e-mail in audit file. 2. Prepare a budget of estimated audit hours by audit category. See Audit Time Budget tab. Identify audit staff that will be assigned to the engagement. 3. Review prior SDLC audits and permanent files to ensure understanding of SDLC process and previously identified audit findings. Document any risks noted in the Risk Assessment tab. Update information in the permanent files, if necessary. 4. Perform pre-audit risk assessment. Map risks identified with audit procedures by updating the Benchmarking and Detail Audit Testing tabs as necessary. 5. Obtain and review the most current SDLC Policies and Procedures manual from auditee. Update the Benchmarking and Detail Audit Testing tabs as necessary. 6. Research industry best practices (ISACA, IIA, NIST, ISO, PMBOK) and compliance requirements (PCI DSS, Privacy, HIPAA, etc.) that are applicable to the system being implemented. Update the Benchmarking and Detail Audit Testing tabs as necessary. Scope The audit of the SDLC process will review each phase of a system implementation project. The audit will address the following areas: governance and risk management, compliance with company procedures and regulation, project management methodology, budget, internal controls, and business processes. 5. Provide management with an evaluation of the project metrics / KPIs and expected benefits stated within the project business case report. AA - Planning 4. Provide management with an assessment of the adequacy of security controls implemented. [INSERT NAME OF AUDIT AND AUDIT NUMBER] Objectives 1. Provide management with an independent assessment of the progress, quality and attainment of project objectives, at defined milestones within the project, based off of company policies and procedures. 3. Provide management with an evaluation of the internal controls of proposed business processes at a point in the development cycle where enhancements can be easily implemented and processes adapted. 2. Provide management with an assessment of the adequacy of project management methodologies and that the methodologies are applied consistently across all projects.
  • 2. Audit Step W/P Ref Preparer Sign-off Reviewer Sign-off 7. Schedule pre-audit meeting with audit team and IT Project Team to discuss the objectives, scope, timing, involvement and requirements of the audit. Maintain meeting minutes. (Note: Audit Team should communicate to the Project Team the expectation that Audit Team will be invited to project meetings and included in any project e-mail groups.) 8. Prepare a preliminary request list of documentation and discuss it during the pre-audit meeting (e.g. flow charts, process narratives, listing of project team members, business case, system product information, etc). See separate tab for detailed audit program. 1. Prepare Audit Memos for each major phase of the IT Project (see below) and e-mail it to Project Team and Project Sponsor. Request from addressee(s) response(s) to all audit findings, along with an implementation date. a. Business case and planning phase. b. Development and build phase. c. Testing phase. d. Pre Go-live & data conversion phase. f. Training phase. 2. Prepare draft Audit Report and e-mail it to direct addressee(s). Request from addressee(s) response(s) to all audit findings, along with an implementation date. 3. Schedule an audit completion meeting with the Project team and Project Sponsor within 2 weeks of issuing the draft report. Review draft audit report and discuss audit findings and recommendations. Maintain meeting minutes. 4. Review management response (i.e. Action Plan) to audit findings. Review completion date(s) of action items for reasonableness. 5. Prepare final version of Audit Report and include the responses received from addressee(s) for all audit findings (if applicable). E- mail it to addressee(s) and management. 6. Prepare and e-mail Audit Survey to auditees. Request that responses are returned to the Audit Manager. See Audit Survey tab. Detailed Audit Testing BB - Audit Conclusion and Reporting
  • 3. Audit Step W/P Ref Preparer Sign-off Reviewer Sign-off 1. Perform follow-up procedures (if applicable) to ensure that responses to audit findings have been implemented. Follow-up procedures should be performed within 6 months of issuance date of audit report. (Note: If management hasn't addressed findings, schedule a meeting with applicable employees to discuss implementation of action plan. Maintain meeting minutes.) 2. Prepare Follow-up Audit Report and e-mail it to direct addressess(s) and management. 3. If management is not properly or timely addressing audit findings, escalate the matter to the CAE. Document escalation in a memorandum to the Audit Files. 1. Perform a residual risk assessment and incorporate risks into the annual audit risk assessment. 2. Update permanent file, if necessary. 3. Review audit workpapers. Verify that all review notes have been properly addressed and closed. Verify that audit sign-offs have been performed by audit staff and reviewer(s). 4. Schedule a meeting of the audit team to discuss what worked well during the audit and areas for improvement to consider for future audits. Discuss with Audit Manager. 5. This audit has been completed in its entirety as of: [insert date] 6. The audit report and workpapers shall be retained for 7 years from the date of completion, unless indicated otherwise (e.g. permanent files). The retentation date is: [insert date] DD - Audit Close-Out & Retention Dates CC - Follow-up Audit Procedures
  • 4. Audit Area Budget Hours Actual Hours Notes Planning Reporting Follow-up Audit Procedures Audit Close-out Detailed Audit Testing Project Governance Pre Implementation - Business Case & Project Planning Pre Implementation - System Development Pre Implementation - Testing Pre Implementation - Pre Go-Live & Conversion Pre Implementation - Training Post Implementation - Support & Maintenance Post Implementation - Project Assessment Post Implementation - Internal Controls Assessment Total Hours 0 0 Planning Reporting Follow-up Audit Procedures Audit Close-out Detailed Audit Testing Project Governance Pre Implementation - Business Case & Project Planning Pre Implementation - System Development Pre Implementation - Testing Pre Implementation - Pre Go-Live & Conversion Pre Implementation - Training Post Implementation - Support & Maintenance Post Implementation - Project Assessment Post Implementation - Internal Controls Assessment Total Hours 0 0 Audit Charge Code: Audit Manager: [Insert Auditor Name] Audit Senior: [Insert Auditor Name]
  • 5. Audit Area Budget Hours Actual Hours Notes Audit Charge Code: Planning Reporting Follow-up Audit Procedures Audit Close-out Detailed Audit Testing Project Governance Pre Implementation - Business Case & Project Planning Pre Implementation - System Development Pre Implementation - Testing Pre Implementation - Pre Go-Live & Conversion Pre Implementation - Training Post Implementation - Support & Maintenance Post Implementation - Project Assessment Post Implementation - Internal Controls Assessment Total Hours 0 0 Audit Staff: [Insert Auditor Name]
  • 6. [Provide a high level overview of the area(s), function(s), business process(es), and current systems that will be affected by the system being implmeneted.] General listing of common risks that may occur during a system implementation project. • System does not align with strategic objectives • End Users do not accept the system due to poor design • Project mismanagement leads to scope creep, budget overruns, and delays • Security vulnerabilities • Internal control gaps • Lack of data completeness, accuracy, and integrity • Inability to adhere to regulation resulting in fines / penalties • Damage to reputation (especially if system is used by external parties) • Disruption of service Risk Rating Definition High Rating: The potential for a material impact on the company's earnings, assets, reputation, customers, and operations. This risk has a high likelihood of occurring. Medium Rating: The potential for a significant impact on the company's earnings, assets, reputation, customers, and operations. This risk has a medium likelihood of occurring. Low Rating: The potential for a significant impact on the company's earnings, assets, reputation, customers, and operations. This risk has a low likelihood of occurring.
  • 7. Risk Assessment Questionnaire Audit Notes Risk Rating Audit Step R1 How will the new system benefit your area and the company the most? R2 How critical is the system to the overall organization? R3 Will the system be included in the corporate wide Disaster Recovery Plan and / or Business Continuity Plan? (Note: Not all systems will be in the DRP due to low criticality rating. Auditor should ask if the department will prepare procedures to perform in situations where the system is unavailable? If not, then system should be reassessed to determine if it warrants Internal Audit attention due to its insignificance in regards to company wide needs). R4 Will this system be used by external parties (e.g. customers or business partners) or internally? R5 What function(s) do you believe will be impacted the most by the new system? R6 Will the new system change the business process(es) significantly? R7 Were other departmental groups included in the assessment of the product to ensure that it meets all user needs? R8 What are the weaknesses in your current process(es) and will they be addressed by the new system? R9 Will the new system require a significant amount of customization? R10 Will the system contain confidential information? If so, what kind of data (e.g. customer PII, employee PII, R&D, intellectual property, etc.)? R11 How will access to confidential data be safeguarded during the development of the system (e.g. security is generally not tight in a development or test environment)? R12 How will access to confidential data be safeguarded when system is in production through access rights (e.g. segregation of duties)? R13 What systems will be interfacing with the new system? R14 What system(s) will be retired once the new system is in production? R15 What data will be converted over to the new system? R16 Do you believe the data to be converted is complete and accurate (e.g. good data) or does the data need to be cleansed? R17 Do you believe the budgeted timeline for the project is acheivable? R18 If the estimated go-live date was significantly delayed, what would be the impact on the organization? R19 What do you believe would be the most challenging aspect of the project? R20 Do you believe that the project has the appropriate support from senior / upper management? R21 In looking back on previous implementation projects, what were the things that worked well and what were the things that did not work well? How do you plan on addressing the things that did not go well? R22 Do you have any concerns regarding project team personnel resources (e.g. availability, training, experience)? R23 Do you believe that there are departmental silos that may impact the development and implementation of the system? R24 What areas do you believe could result in scope creep? Audit Senior Interview of Project Team Members
  • 8. Risk Assessment Questionnaire Audit Notes Risk Rating Audit Step R25 Do you believe that the new system will require a significant amount of support from the Help Desk, IS, Super Users, or the Project Team members after it goes live? R26 Did you include an assessment of the vendor's security process related to the product you are purchasing for the history of vulnerabilities, notifying customers of vulnerabilities and remediating vulnerabilities identified through patching? R27 Will you be using a software development model in implementing this system? (e.g. rapid application development, joint application development, agile, spiral, prototype, or waterfall) R28 Will you be using any implementation tools on the cloud in implementing this system? R29 Does this system or the data that will be contained within it fall under the scope of international / federal / state regulation? R30 [Add additional risks as needed] R31 Indicate risks stated in the annual audit risk assessment. R32 Indicate risks identified in review of prior SDLC audits performed. R33 Indicate any control deficiencies identified in the area(s), function(s), or business process(es) that have occurred in the past two years. R34 Determine if the members on the Project Team have the proper training and experience to manage a SDLC project. R35 Are there any financial risks concerning this project (e.g. going overbudget, impacting the financial statements, impacting customer billing or vendor payments, etc.)? R36 Are there any fraud risks that need to be considered (programming backdoors, unauthorized access to / theft of data, intentionally misconfiguring the system, unauthorized individual (internal employees and contractors) with access to data and / or systems)? R37 Are there any security risks that need to be considered (server / OS, application, data, placement in network infrastructure (segmentation))? R38 Review post implementation project assessment reports and identify any lessons learned that may pose a risk to this project. r R39 Assess if there are any risks related to the response in question #R27. R40 Assess if there are any risks related to the response in question #R28. R41 [Add additional risks as needed] Audit Team Assessment
  • 9. Audit Risk Control Lack of procedures leads to mismanaged project, system not meeting business needs, and ineffective responsibilities and accountabilities. IT project management policy, procedures, and templates have been developed and are reviewed on a periodic basis. A1 Employees do not have the required skills to implement a system leading to mismanaged project and system not meeting business needs. Employees involved in IT system implementation projects have been trainined on policy, procedures and use of the templates. A2 A3 A4 A5 Project Steering Committee provides oversight over IT system implementation projects. Section A - Governance Audit Procedures Communication of project status are not performed throughout the life cycle of the project resulting in unidentified issues, surprises and delays.
  • 10. A6 A7 A8 A9 A10 A11 A12 A13 Project Team meets regularly with project team members, subject matter experts, and system implementors / contractors to review project status and identify tasks and issues. An organizational change communication plan is developed and implemented. (typically for major systems) End Users do not accept or use the system.
  • 11. A14 B1 B2 B3 B4 Lack of business justification results in the purchase of a system that does not meet business needs. IT projects are assessed according to organizational objectives and are approved. Vendor is selected according to company bid procedures. Inadequate vendor is selected to implement the system resulting in cost overruns, project delays, and system not meeting business needs. Section B - Pre-Implementation: Business Case and Project Planning
  • 12. B5 B6 B7 B8 B9 B10 B11 Vendor contract is prepared according to company procedures. Inadequate contract terms may result in cost overruns, project delays, and exposure to additional risks (e.g. unauthorized access / disclosure of data). A project plan is created to establish accountability and expectations. Inadequate project planning may result in cost overruns, project delays, and system not meeting business needs.
  • 13. B12 Lack of procedures leads to mismanaged project, system not meeting business needs, and ineffective responsibilities and accountabilities. Project documentation is in conformance with company procedures. B13 System design team does not understand capabilities resulting in inadequate system design. Project Team members are trained on the capabilities of the system prior to blueprinting. B14 B15 C1 C2 System Development Plan meets business needs and is updated throughout the project. C3 Section C - Pre-Implementation: System Development -- Design & Build System design meetings are held with a crossfunctional group of users and technical SMEs. Inadequate system design results in a system that does not meet user needs and increases likelihood of nonacceptance.
  • 14. Security and internal control requirements are included in the System Development Plan. C4 System Development Plan is reviewed and approved by Project Sponsor. C5 C6 C7 Confidential data is properly secured. C8 Inadequate data conversion plan results in data integrity issues and increases likelihood of nonacceptance by users. Data Conversion Plan is well designed and meets business needs.
  • 15. Data Conversion Plan is reviewed and approved by Project Sponsor. C9 Lack of procedures leads to mismanaged project, system not meeting business needs, and ineffective responsibilities and accountabilities. Project documentation is in conformance with company procedures. C10 Project team members are unaware of system design documentation leading to a system that does not meet business needs. Project documentation is communicated to Project team members. C11 C12 C13 System build is in conformance with company policies and procedures. Lack of procedures leads to mismanaged project, system not meeting business needs, and ineffective responsibilities and accountabilities.
  • 16. C14 C15 C16 C17 C18 C19 C20 Inaccurate converted data results in data integrity issues and increases likelihood of nonacceptance by users. Data in the old system is reviewed to ensure accuracy and integrity. Data conversion process is tested and errors are addressed. Inadequate testing of data conversion results in unidentified issues or errors occurring during the go-live phase.
  • 17. C21 C22 C23 C24 C25 Project Lead reevalutes the project budget, timeline, and milestones against actual results throughout the project to identify any issues that need to be addressed. Lack of project monitoring leads to budget overruns, delays and not meeting project objectives. System documentation is developed and maintained to current specifications. Lack of technical documentation leads to inability to effectively support the system.
  • 18. C26 C27 C28 Lack of a test plan may lead to ineffective testing resulting in acceptance of a system that does not meet business needs. Test Plan is created to ensure testing is complete and system meets stated requirements prior to implementation. D1 Lack of procedures leads to mismanaged project, system not meeting business needs, and ineffective responsibilities and accountabilities. Project documentation is in conformance with company procedures. D2 Lack of a test plan may lead to ineffective testing resulting in acceptance of a system that does not meet business needs. Test Plan is reviewed and approved by Project Sponsor. D3 Test environment is created and kept separate from the development and production environment. D4 Lack of a test environment results in ineffective testing and may lead to a system not meeting business needs. Section D - Pre-Implemetntation: Test
  • 19. Test environment simulates the production environment. D5 Lack of cross functional testers may result in system not meeting business needs. Testers are made up of cross functional users to ensure system meets business needs. D6 D7 D8 D9 D10 Testing issues identified are not resolved prior to implementation. Issues are tracked in a log and monitored to ensure timely and proper resolution. D11 Lack of a test scripts may lead to ineffective testing resulting in acceptance of a system that does not meet business needs. Test scripts are created and monitored for satisfactory results. D12 D13 D14 D15 Lack of a test scripts may lead to ineffective testing resulting in acceptance of a system that does not meet business needs. Test scripts are created and monitored for satisfactory results. Lack of a test environment results in ineffective testing and may lead to a system not meeting business needs.
  • 20. Lack of technical documentation leads to inability to effectively support the system. System documentation is developed and maintained to current specifications. D16 D17 D18 D19 D20 D21 Lack of implementation plan results in go-live steps being missed leading to a system that does not meet business needs or unavailability of the new system. Implementation Plan is created to ensure a smooth and complete transition to the production environment. E1 Lack of procedures leads to mismanaged project, system not meeting business needs, and ineffective responsibilities and accountabilities. Project documentation is in conformance with company procedures. E2 Project Lead reevalutes the project budget, timeline, and milestones against actual results throughout the project to identify any issues that need to be addressed. Lack of project monitoring leads to budget overruns, delays and not meeting project objectives. Section E - Pre-Implementation: System Pre Go-live & Data Conversion
  • 21. Lack of implementation plan results in go-live steps being missed leading to a system that does not meet business needs or unavailability of the new system. Implementation Plan is reviewed and approved by Project Sponsor. E3 E4 Modification of loss of data in the old system may impact data conversion process. Data in the old system is backed up prior to data conversion to production environment. E5 E6 E7 E8 All test scripts have been completed with satisfactory results. E9 Production environment is tested to ensure it performs in the same capacity as the test environment. E10 Unresolved issues are tracked. E11 Unresolved issues are assessed for impact on the system prior to going live. E12 Lack of testing of the production environment prior to go live may result in system not meeting business needs or unavailability of the system. Unresolved issues are not identified resulting in system not meeting business needs in production environment. Inadequate testing of data conversion results in unidentified issues or errors occurring during the go-live phase. Data conversion process is tested and errors are addressed.
  • 22. Unresolved issues are reviewed and approved. E13 Privielged users do not have access to the production environment. E14 Security personnel review and approve the security specifications prior to system going live. E15 Lack of access review may lead to unauthorized users having access to the system or authorized users set up in the wrong access group. System owner reviews and approves user access rights prior to system going live. E16 E17 E18 Lack of go-live checklist results in go-live steps being missed leading to a system that does not meet business needs or unavailability of the new system. Go-live checklist is maintained to track all go-live tasks and ensure all have been completed. E19 E20 E21 E22 E23 meeting business needs in production environment. Lack of project monitoring leads to budget overruns, delays and not meeting project objectives. Project Lead reevalutes the project budget, timeline, and milestones against actual results throughout the project to identify any issues that need to be addressed. Lack of security controls leads to security vulnerabilities in the system. Section F - Pre-Implementation: Training Lack of approval to go-live may result in system not meeting business needs. Project Steering Committee approves system to go live.
  • 23. F1 F2 F3 F4 F5 Lack of support personnel may lead to user frustration and lack of acceptance. Support team is properly staffed to meet business needs. G1 G2 G3 G4 Support personnel do not understand system and are unable to resolve user issues. Technical training is provided to support personnel on newly implemented systems. G5 G6 G7 Lack of a patch management process leads to security vulnerability exposures. Patch management procedures are in place and reviewed annually. G8 Section G - Post Implementation: Support & Maintenance Training is provided to users to provide them with the proper procedures in utilizing the system. Users do not accept the system. Slow support response may lead to user frustration and lack of acceptance. Lack of change management procedures results in unauthorized changes being made, changes not being properly tested, and system documentation not being updated. Change management procedures are in place and reviewed annually. SLA metrics are developed and monitored to measure performance and meet business needs.
  • 24. Lack of inventory listing leads to unauthorized devices / software on the network resulting in exposure to security vulnerabilities. IT asset inventory listing is maintained and reviewed on an ongoing basis. G9 H1 H2 H3 H4 H5 H6 I1 I2 Internal controls are not created or operating effectively for the system, which could lead to inaccurate financial reporting. Section H - Post Implementation: Review of Project Results & Close Out Secion I - Post Implementation: Internal Controls Assessment Post implementation review is performed by the Project Lead and reviewed by the Project Steering Committee. I3 Evaluation of the management of the project is not performed, which could lead to ineffective project management practices, an ineffective system, and not meeting business objectives. Internal controls are created or modified to ensure the safeguarding of assets and financial records. Controls to be considered: - security - change management - operations - continuity - business processes
  • 25. I4 - operations - continuity - business processes
  • 26. Pre-Audit Risk # Company Procedures COBIT 5 COSO Principle Obtain and examine policy, procedures and templates. Verify that they address the following: - Business Case Analysis - Project risk assessment - Roles and responsibilities - System documentation - System specification - User specification - Security specification - System development plan - Change requests - Developing internal controls - Project issue procedures - Data conversion plan - Test plan - Pre Go-live plan - Training - Organizational change management plan - Project monitoring & status updates - Post implementation project review BAI01.01 4, 5, 10, 11, 12 Examine training records and verify that employees on the project team have been trained on company IT project management procedures. BAI01.12 4 Verify that a Project Steering Committee exists, as evidenced by the committee charter. BAI01.02 3 A member of the Audit Team should attend the Project Steering Committee meetings. Obtain and examine Project Steering Committee meeting minutes to verify that committee is reviewing project status, achievement of project milestones, monitoring budget-to-actual costs, and results of project measurements (i.e. KPIs). BAI01.05, BAI01.06, BAI01.07, BAI01.11 5, 13, 16 Audit Procedures
  • 27. Verify that the Project Team Lead is submitting status reports on a periodic basis and any other required documentation to the Project Steering Committee throughout the lifecycle of the project. Status reports should contain budget-to-actual comparison & variation analysis, monitoring of milestones & KPIs, description of achievements and any issues effecting the progress of the project. BAI01.06, BAI01.07, BAI01.11 14, 16 Verify that the Project Steering Committee has reviewed the post implementation project results report and develops an Action Plan to address any actionable lessons learned. BAI01.06, BAI01.11 17 A member of the Audit Team should attend the Project Team status meetings. Examine the Project Team's status meeting minutes and verify that the team discusses tasks completed / to be completed and issues identified / assigned / resolved. BAI01.08 16 Verify that an organizational change communication plan has been developed and should address: - Assessing company's readiness to accept change - Educating end users on the reason and timing behind the change - Roles and responsibilities of organizational change management team - Vision and strategy for change - Communication of vision and strategy to end users - Remove barriers / silos that inhibit end user acceptance - Short-term and long-term goals identified and monitored - Identify training needs - Other communication activities (newsletter, posters, intranet site, etc.) - Continuous feedback BAI01.03 14 Verify that an external communication plan has been created to provide information to customers and / or business partners regarding the implementation of the system (if system will be used by these parties). BAI01.03 15 Verify that the Communication Plan has been approved by the Project Sponsor. BAI01.03 3 Verify that the communication plan has been implemented. BAI01.03 14
  • 28. Interview a sample of employees to determine the effectiveness of the communication plan and end user acceptance of system. BAI01.03 14 Verify that a Business Case Report has been developed and approved by the appropriate level of management and governance committee(s) (e.g. IT Steering Committee, Capital Assets Committee, etc.). BAI01.02 6 Verify that the Business Case Report includes: - Current state of business process, identifying any control weaknesses - Expected future state of business process (consider future growth) - Addresses corporate / department strategic goals - Description of the application systems reviewed (e.g. proof of concepts, demos) - Reason behind system recommended to be implemented (e.g. feasibility study) - Cost benefit analysis (dollar & labor cost / benefits, other benefits) - Potential risks of the project and significance of risks - Potential impact to critical systems - Regulatory concerns / approvals - End User feedback BAI01.02, BAI01.10, BAI02.02 6, 7, 9, 13 Verify that a Request for Proposal was prepared and sent to selected vendors. APO10.02 Verify that Vendor proposals were reviewed for: - Reputation and experience of vendor - Experience of vendor personnel - Proposal content met scope of the project - Rates for time and expense - Ability to respond to system vulnerabilities and provide patches to customers timely APO10.02 ning
  • 29. Verify that the vendor contract addresses the following: - Vendor expectations - Deliverables - System requirements - Warranties and liabilities - Rates for time and expense (pymt terms based on achievement of milestones) - Change request process - Confidentiality / Non-Disclosure - Terms and conditions - Project timelines and milestones - Insurance requirements - Adherence to company policies and procedures in developing system - Terms to restore back to current system BAI03.03, BAI03.04, APO10.01, APO10.02 Verify that the vendor contract has been approved by the appropriate level of management. 3 Verify that a Project Plan has been created and includes: - Project objectives - Project scope - Project risk assessment - Identifies stakeholders - Project Sponsor - Team members - Roles and responsibilities - Budgets and timelines - Project milestones and KPIs - Communication plan - Deliverables - Change in scope procedures BAI01.04, BAI01.05, BAI01.07, BAI01.08, BAI01.10, BAI01.12, BAI02.03 3, 5, 6, 7, 14 Verify that the Project Plan has been approved by the Project Team Lead and Project Sponsor. BAI01.07 Verify that a project kick-off meeting has been held to review the Project Plan with team members by obtaining the meeting minutes. BAI01.07. BAI01.08 14 Assess project timelines and determine if timeline is reasonably acheivable. Assess project pesonnel resources for: - Availability - Cross functional respresentation of all departments impacted by system - Experience BAI01.12
  • 30. Review prior project lessons learned and determine if they have been properly incorporated into the Project Plan. BAI01.01 Verify that the Project Plan is in compliance with company procedures. BAI01.01 12 Verify that employees involved in the design and build of the application system have been properly trained to configure / customize the system and ability to use the system when performing tests. BAI01.12 4 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. Verify that project design / blueprint meetings have been held to develop the System Development Plan and Data Conversion Plan by obtaining the meeting minutes. BAI02.01, BAI03.01 10, 14 Verify that the appropriate employees are participating in the project design meetings: - Project team - System implementors - Subject matter experts - Super users - End users - Network administrators - System administrators - Security administrators BAI01.12, BAI03.01 10, 14 Verify that a System Development Plan has been created and includes: - System documentation - System specification - User specification - Functional requirements - Reporting requirements - Customization - Security and internal controls requirements - Interfaces with other systems (consider impact on inter-operability) - Process and data flowcharts - Data storage - Issue identification and resolution - Constraints - Backout / Contingency Plan BAI02.01, BAI03.01, BAI03.02, BAI03.03 5, 11 & Build
  • 31. Verify that security and internal control requirements consider the following: - access rights based on least privilege - segregation of duties - system authorizations - edit checks - audit logs - input checks - matching checks - sequence checks - duplication checks - output - exception reporting BAI02.01, BAI03.01, BAI03.02, BAI03.03 5, 11 Verify that the System Development Plan has been approved by the Project Team Lead, Project Sponsor, and System Implementor. BAI03.01 Verify that a Data Conversion Plan has been created and includes: - Identification of data to be transferred / converted - Data cleansing procedures - Error tolerances - Data mapping - Data extraction - Data transfer - Data validation test plans - Issue identification and resolution - Conversion timeline - Conversion tasks included in go-live checklist - Required approvals BAI03.01, BAI03.02, BAI03.06, BAI07.01 11 Verify that the Project Team has developed the data map. Determine if data map is in sufficient detail to assist IT in converting the data and for testers in testing the system. - flow chart of data movement - identification of common data elements - identification of field mapping between old system and new system - determine file format and layout for import: field length, format, name, values, etc. - translation of data values - identification of confidential / key data BAI03.02, BAI07.02 Assess whether the data to be converted is confidential and whether appropriate security measures have been implemented to protect that data where it resides (e.g. dev / test / prod environments). BAI03.02, BAI07.04
  • 32. Verify that the Data Conversion Plan has been approved by the Project Team Lead, Project Sponsor, and System Implementor. BAI02.04 Verify that the System Development Plan and Data Conversion Plan are in compliance with company procedures. BAI02.01 12 Verify that the System Development Plan and Data Conversion Plan have been discussed with applicable employees involved in implementing these plans. BAI01.08 Verify that any servers and operating systems pertaining to the new system have been configured according to the company's configuration management procedures. - default and unncecssary accounts / services are disabled, if possible - disable local admin account - default passwords are changed and made complex for admin accounts, application / operating systems and any other new networked device - limiting admin privileges to those who have a business need to modify configuration - enable logging BAI01.09, BAI03.05 11 Verify that any servers and operating systems pertaining to the new system have been secured according to the company's security procedures. Examples are: - anti-virus / malware on server - password management enabled (log-on attempts, password change timeframe, password history) - admins have different passwords for admin accounts and non-admin accounts - disabling LM hashes - encryption - network segmentation - enable firewall - remote administration of servers over secure channels BAI01.09, BAI03.05 11
  • 33. Verify that changes made to current systems (setting up interfaces, extracting data, importing data) follow the company's change management procedures. - changes are documented - changes are tested - changes are approved by business and IT prior to migration into production environment - quality assurance review BAI01.09, BAI03.05, BAI06 11 Verify that the data cleansing has been performed by determining if the Project Team verified that: - All mandatory fields are populated - All records are present - Default or dummy values cannot be inserted where there is missing data - Data is complete - No duplication of data fields BAI07.02 For data that has not been cleansed, determine potential risks and impacts to the project. Determine if error tolerances have been evaluated against the approved thresholds stated in the Data Conversion Plan. BAI07.02 Verify that the Project Team has verified the accuracy, integrity and completeness of data conversion to the test system by reviewing test documentation. BAI07.02 Verify that data converted to the test system is complete, accurate, and has integrity. - batch and control totals - check sums / digits - range checks - date and time stamps - use a data analysis tool to compare a sample of data from the old system and the new system - verify a test sample of data to source documentation BAI03.05, BAI03.06, BAI07.02 11, 13 Verify that the Project Team addresses any errors or omissions identified as part of testing the data conversion. BAI07.02 Verify that appropriate controls are in place to prevent or detect any data manipulation during the conversion process and that they are operating effectively. BAI03.05, BAI07.02 11
  • 34. Verify that the Project Team has maintained documentation of process design, configuration, and customization. - flow charts - screenshots - exhibits of code - online and batch operating instructions - system narratives - configuration baselines BAI03.05, BAI07.02, BAI10.03 11 At the end of the system build phase, verify that the Project Team has created the User Manual. The manual may include: - description of the system - use of the system - input data and parameters - output data - operating procedures - error identification and resolution - user responsibilities related to security, privacy and internal controls BAI07.02 11 At the end of the system build phase, verify that the Project Team has created the Operations and Maintenance Manual. This manual may include: - description of software - instructions to operate software - technical flow charts - exhibits of code - technical specifications - security specifications - description of internal controls - description of non-routine procedures and security requirements - procedures for error resolution - maintenance procedures - configuration baselines BAI01.09, BAI02.01, BAI03.03, BAI03.05, BAI03.10, BAI10.03 11 Determine if any change orders have been approved. If so, verify if the project budget cost, labor hours and timeline have been updated. Determine if there is any risk due to scope creep. BAI01.11, BAI03.09 Verify that any milestone(s) achieved during this phase have been reviewed and approved by the Project Sponsor. BAI01.08, BAI01.11
  • 35. Verify that the Project Lead has reviewed the Project Plan to ensure that the project is on target with budgets, milestones and timeline. Verify that Project Lead has reassessed the project risks for the activities in this phase. Verify the Project Lead has updated the Project Plan, if necessary. BAI01.10, BAI01.11, BAI02.03 Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project in the testing phase (e.g. going over budget in the design and build phase may lead to decreasing hours dedicated to testing system). BAI01.05 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. Verify that a Test Plan has been created and includes the following: - testing methodology, including types of tests to be performed (e.g. functional, unit, integration, end-to-end, acceptance, performance, parallel / pilot, volume / stress, regression, quality assurance, penetration, scanning, fuzzing, testing for failures, security) - Testing procedures - Testing templates / scripts (purpose, procedure, conclusion, sign-off) - Testing documentation to be maintained, along with retention period - Reporting, tracking and remediating issues identified during testing - Acceptance and approval of test results - test location and preparation BAI01.09, BAI03.06, BAI03.07, BAI07.01, BAI07.03 11 Verify that the Test Plan is in compliance with company policy and procedures. BAI01.01, BAI03.07, BAI07.03 12 Verify that the Test Plan has been reviewed and approved by the Project Leader and Project Sponsor. BAI07.03 Verify that there is a separate test environment from the development and production environment. BAI03.07, BAI07.04 12
  • 36. Verify that the test environment simluates the production environment. BAI03.07, BAI07.04 Verify that the Project Team has identified all employees to be used in the testing process. Verify that these employees: - have been provided training on how to use the system - have been provided a copy of the Test Plan - understand their roles and responsibilities regarding testing the system - have the availability to perform the required test scripts and retest if necessary - are from business areas in the company that will be using the system BAI01.12, BAI03.08, BAI07.03 4 Verify that test scripts have been created for all tests that are to be performed and have been mapped back to System Development Plan specifications. BAI01.09, BAI03.06, BAI03.07, BAI07.03 11 Verify that the test scripts created are testing for failures in the process or negative testing where users can't perform functions that are beyond their authorization or responsibilities. BAI03.06, BAI07.05 11 Verify that test scripts include testing of security and system controls. 11 Verify that the Project Team is tracking the performance and completion of all test scripts. BAI03.08, BAI07.05 11 Verify that the Project Team is tracking all issues identified on a log where the issue is assigned to an owner for resolution. Verify that the remediated issue is retested with a satisfactory result. BAI03.06, BAI03.08, BAI07.05 11 Verify that the Project Team is tracking testing documentation and ensuring it is being maintained for all test scripts. BAI01.09, BAI03.08, BAI07.05 11 Select a sample of test scripts and observe the Testers performing the tests. Verify that the Testers are performing the tests in accordance with the Test Plan. Select a sample of test scripts and reperform. Compare the audit results to the Tester's results. Use a data analysis tool to identify any gaps in the security or internal control requirements.
  • 37. Verify that the User Manual and / or Operations Manual have been updated for any changes that occurred during the testing phase to ensure complete and accurate system documentation. BAI02.01, BAI03.10 11, 12 Determine if any change orders have been approved. If so, verify if the project budget cost, labor hours and timeline have been updated. Determine if there is any risk due to scope creep. BAI01.11, BAI03.09 Verify that any milestone(s) achieved during this phase have been reviewed and approved by the Project Sponsor. BAI01.08, BAI01.11 Verify that the Project Lead has reviewed the Project Plan to ensure that the project is on target with budgets, milestones and timeline. Verify that Project Lead has reassessed the project risks for the activities in this phase. Verify the Project Lead has updated the Project Plan, if necessary. BAI01.10, BAI01.11 Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project in the go-live phase. BAI01.05 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. Verify that an Implementation Plan has been created and includes: - implementation schedule - development of production environment - testing of production environment - securing production environment - data conversion - data back-up - contingency / fallback plan - approvals to go live - resolution of any issues identified prior to go-live - acceptance of any unresolved issues identified - tracking go-live tasks (e.g. checklist) - go / no-go criteria BAI01.09, BAI07.01, BAI07.06 11 Verify that the Implementation Plan is in compliance with company policy and procedures. BAI01.01 12 ersion
  • 38. Verify that the Implementation Plan has been reviewed and approved by the Project Lead, Project Sponsor, and System Implementor. BAI07.01 11 Evaluate the implementation schedule and determine if it is reasonable and achievable. Verify that the data in the current system is backed up prior to converting data to the new system. BAI07.02 Verify that data converted to the production system is complete, accurate, and has integrity. - batch and control totals - check sums / digits - range checks - date and time stamps - user reconciliations / data validation - use a data analysis tool to compare a sample of data from the old system and the new system - verify a test sample of data to source documentation BAI01.09, BAI07.02 11 Verify that appropriate controls are in place to prevent or detect any data manipulation during the conversion process and that they are operating effectively. BAI01.09, BAI07.02 11 Verify that the Project Team addresses any errors or omissions identified as part of testing the data conversion prior to going live with the system. BAI01.09, BAI07.02 11 Verify that all test scripts have been completed and any issues identified during the testing phase have been resolved prior to the system going live. BAI01.09 11 Verify that tests scripts performed on the production environment have been completed and any issues identified have been resolved prior to the system going live. BAI01.09 11 Verify that unresolved issues have been identified by the Project Lead and are being tracked. BAI07.05 Verify that any unresolved issues that will not be addressed prior to go live will not have a significant impact on the production system. BAI07.05
  • 39. Verify that unresolved issues have been reviewed and approved by the Project Sponsor and Project Steering Committee prior to going live. BAI07.05 Verify that the production environment has the appropriate security controls to prevent access to the system by administrators or the system implementors once the system is live. BAI01.09 11 Verify that the Security group has reviewed the security specifications of the system and has approved it to go-live. BAI01.09 11 Verify that the system owner has reviewed and approved the access rights of end users and assignment of user groups. BAI01.09 11 Verify that the Project Lead has communicated the results of the system build and testing phases to the Project Steering Committee, along with any issues that are expected to be unresolved by the go-live date. 11 Verify that the Project Steering Committee has approved the system to go live. 3 Verify that all tasks on the go-live checklist have been signed-off on prior to going live. BAI01.09 Verify that any milestone(s) achieved during this phase have been reviewed and approved by the Project Sponsor. BAI01.08, BAI01.11 Verify that the Project Lead has reviewed the Project Plan to ensure that the project is on target with budgets, milestones and timeline. Verify that Project Lead has reassessed the project risks for the activities in this phase. Verify the Project Lead has updated the Project Plan, if necessary. BAI01.10, BAI01.11 Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project and consider discussing with the Project Steering Committee. BAI01.05 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor.
  • 40. Verify that the Project Team has developed a training program based off of the User Manual and Operations Manual. BAI08.04 4 Verify that end users, super users, and technical support personnel are properly trained on the new system. BAI08.04 4, 14 Review training schedule and attendance sheets to determine that users attended the training. Verify that surveys were provided to users regarding feedback on the training materials. Verify that comments are incorporated into the training program and / or User Manual. 14 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. Verify that management has committed the appropriate additional resources to support the system and respond to end users' needs post go- live for a predetermined amount of time (e.g 3 months). BAI03.10, BAI07.07 Verify that in-house support personnel have stated service level agreement metrics to meet the needs of the end users timely. BAI01.06, BAI03.11 13 Determine if the level of support is meeting its SLA metrics. BAI01.06, BAI03.10, BAI03.11 Determine if management will be relying on vendor support for the system. If so, obtain and review support contract for terms and agreement, confidentiality, and access rights. Determine level of support during an incident / disaster. BAI03.11 Verify that all support personnel have received training on the Operations Manual. BAI02.01 Verify that any changes made to the system by support personnel follow the company's change management policy and procedures. BAI03.10, BAI06 11 Verify that there is a process in place to update the Operations Manual based on changes made.Verify that there is a process in place to update the Operations Manual based on changes made. BAI03.10 11 Verify that the system is included in the patch management policy and procedures. BAI03.10 11, 12
  • 41. Verify that the hardware and software associated with this implementation project have been included in the company's inventory listing of IT assets. BAI03.04, BAI09.01 Verify that the Project Lead has performed a post implementation assessment. The assessment should include: - determination if project objectives were achieved - assessment on cost benefit analysis presented in business case - assessment of project budgets (cost, labor hours, timeline) in comparison with actual results - project metrics, KPIs - feedback from end users on acceptance of system - identifying lessons learned BAI01.05, BAI01.06, BAI01.11, BAI01.13, BAI07.08 11, 13, 14 Evaluate the lessons learned identified by the Project Lead and determine if they address the findings noted in the audit memorandums issued. BAI01.13, BAI07.08 For any unresolved issues, verify that they have been assigned an owner and estimated completion date. Verify that unresolved issues are tracked and closed out timely. BAI01.13, BAI07.08 Verify that the Project Lead presented the post implementation assessment results to the Project Steering Committee. BAI01.06, BAI01.11 11, 13, 16, 17 Verify that project documentation is properly secured and retained according to retention policy and procedures. BAI01.14 Verify that the Project Lead has obtained approval from the Project Steering Committee to close the project. BAI01.14 Verify that the ITGC and business process internal control documentation (e.g. narrative, flow charts, matrices) have been created or modified to accommodate the new system. 11 Verify if policies, procedures, and internal controls have been revised based on the project's lessons learned. 11, 12, 17 Test the internal controls to verify that they are operating effectively. 11 a. Test the ITGC controls. b. Test the Business Process controls. ose Out
  • 42. Verify that the new system has been added to the Disaster Recovery Procedures Manual. (Note: based on the criticality of the system, the company may decide not to include it in the DRP. In this situation, assess if the system owner needs to consider a business continuity plan). BAI09.02 11
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  • 49. CSC 3-1, 3-3, 3-4, 12-1, 12-3, 12-4 CSC 3-7, 12-6, 12-8, 12-9, 17- 1, 19-4
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  • 60. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off A1 Obtain and examine policy, procedures and templates. Verify that they address the following: - Business Case Analysis - Project risk assessment - Roles and responsibilities - System documentation - System specification - User specification - Security specification - System development plan - Change requests - Developing internal controls - Project issue procedures - Data conversion plan - Test plan - Pre Go-live plan - Training - Organizational change management plan - Project monitoring & status updates - Post implementation project review A2 Examine training records and verify that employees on the project team have been trained on company IT project management procedures. A3 Verify that a Project Steering Committee exists, as evidenced by the committee charter. A4 A member of the Audit Team should attend the Project Steering Committee meetings. A5 Obtain and examine Project Steering Committee meeting minutes to verify that committee is reviewing project status, achievement of project milestones, monitoring budget-to-actual costs, and results of project measurements (i.e. KPIs). Audit Procedures Section A - Governance
  • 61. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures A6 Verify that the Project Team Lead is submitting status reports on a periodic basis and any other required documentation to the Project Steering Committee throughout the lifecycle of the project. Status reports should contain budget-to-actual comparison & variation analysis, monitoring of milestones & KPIs, description of achievements and any issues effecting the progress of the project. A7 Verify that the Project Steering Committee has reviewed the post implementation project results report and develops an Action Plan to address any actionable lessons learned. A8 A member of the Audit Team should attend the Project Team status meetings. A9 Examine the Project Team's status meeting minutes and verify that the team discusses tasks completed / to be completed and issues identified / assigned / resolved. A10 Verify that an organizational change communication plan has been developed and should address: - Assessing company's readiness to accept change - Educating end users on the reason and timing behind the change - Roles and responsibilities of organizational change management team - Vision and strategy for change - Communication of vision and strategy to end users - Remove barriers / silos that inhibit end user acceptance - Short-term and long-term goals identified and monitored - Identify training needs - Other communication activities (newsletter, posters, intranet site, etc.) - Continuous feedback
  • 62. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures A11 Verify that an external communication plan has been created to provide information to customers and / or business partners regarding the implementation of the system (if system will be used by these parties). A12 Verify that the Communication Plan has been approved by the Project Sponsor. A13 Verify that the communication plan has been implemented. A14 Interview a sample of employees to determine the effectiveness of the communication plan and end user acceptance of system. B1 Verify that a Business Case Report has been developed and approved by the appropriate level of management and governance committee(s) (e.g. IT Steering Committee, Capital Assets Committee, etc.). B2 Verify that the Business Case Report includes: - Current state of business process, identifying any control weaknesses - Expected future state of business process (consider future growth) - Addresses corporate / department strategic goals - Description of the application systems reviewed (e.g. proof of concepts, demos) - Reason behind system recommended to be implemented (e.g. feasibility study) - Cost benefit analysis (dollar & labor cost / benefits, other benefits) - Potential risks of the project and significance of risks - Potential impact to critical systems - Regulatory concerns / approvals - End User feedback Section B - Pre-Implementation: Business Case and Project Planning
  • 63. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures B3 Verify that a Request for Proposal was prepared and sent to selected vendors. B4 Verify that Vendor proposals were reviewed for: - Reputation and experience of vendor - Experience of vendor personnel - Proposal content met scope of the project - Rates for time and expense - Ability to respond to system vulnerabilities and provide patches to customers timely B5 Verify that the vendor contract addresses the following: - Vendor expectations - Deliverables - System requirements - Warranties and liabilities - Rates for time and expense (pymt terms based on achievement of milestones) - Change request process - Confidentiality / Non-Disclosure - Terms and conditions - Project timelines and milestones - Insurance requirements - Adherence to company policies and procedures in developing system - Terms to restore back to current system B6 Verify that the vendor contract has been approved by the appropriate level of management.
  • 64. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures B7 Verify that a Project Plan has been created and includes: - Project objectives - Project scope - Project risk assessment - Identifies stakeholders - Project Sponsor - Team members - Roles and responsibilities - Budgets and timelines - Project milestones and KPIs - Communication plan - Deliverables - Change in scope procedures B8 Verify that the Project Plan has been approved by the Project Team Lead and Project Sponsor. B9 Verify that a project kick-off meeting has been held to review the Project Plan with team members by obtaining the meeting minutes. B10 Assess project timelines and determine if timeline is reasonably acheivable. B11 Assess project pesonnel resources for: - Availability - Cross functional respresentation of all departments impacted by system - Experience B12 Review prior project lessons learned and determine if they have been properly incorporated into the Project Plan. B13 Verify that the Project Plan is in compliance with company procedures. B14 Verify that employees involved in the design and build of the application system have been properly trained to configure / customize the system and ability to use the system when performing tests.
  • 65. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures B15 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. C1 Verify that project design / blueprint meetings have been held to develop the System Development Plan and Data Conversion Plan by obtaining the meeting minutes. C2 Verify that the appropriate employees are participating in the project design meetings: - Project team - System implementors - Subject matter experts - Super users - End users - Network administrators - System administrators - Security administrators C3 Verify that a System Development Plan has been created and includes: - System documentation - System specification - User specification - Functional requirements - Reporting requirements - Customization - Security and internal controls requirements - Interfaces with other systems (consider impact on inter-operability) - Process and data flowcharts - Data storage - Issue identification and resolution - Constraints - Backout / Contingency Plan Section C - Pre-Implementation: System Development -- Design & Build
  • 66. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures C4 Verify that security and internal control requirements consider the following: - access rights based on least privilege - segregation of duties - system authorizations - edit checks - audit logs - input checks - matching checks - sequence checks - duplication checks - output - exception reporting C5 Verify that the System Development Plan has been approved by the Project Team Lead, Project Sponsor, and System Implementor. C6 Verify that a Data Conversion Plan has been created and includes: - Identification of data to be transferred / converted - Data cleansing procedures - Error tolerances - Data mapping - Data extraction - Data transfer - Data validation test plans - Issue identification and resolution - Conversion timeline - Conversion tasks included in go-live checklist - Required approvals
  • 67. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures C7 Verify that the Project Team has developed the data map. Determine if data map is in sufficient detail to assist IT in converting the data and for testers in testing the system. - flow chart of data movement - identification of common data elements - identification of field mapping between old system and new system - determine file format and layout for import: field length, format, name, values, etc. - translation of data values - identification of confidential / key data C8 Assess whether the data to be converted is confidential and whether appropriate security measures have been implemented to protect that data where it resides (e.g. dev / test / prod environments). C9 Verify that the Data Conversion Plan has been approved by the Project Team Lead, Project Sponsor, and System Implementor. C10 Verify that the System Development Plan and Data Conversion Plan are in compliance with company procedures. C11 Verify that the System Development Plan and Data Conversion Plan have been discussed with applicable employees involved in implementing these plans.
  • 68. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures C12 Verify that any servers and operating systems pertaining to the new system have been configured according to the company's configuration management procedures. - default and unncecssary accounts / services are disabled, if possible - disable local admin account - default passwords are changed and made complex for admin accounts, application / operating systems and any other new networked device - limiting admin privileges to those who have a business need to modify configuration - enable logging C13 Verify that any servers and operating systems pertaining to the new system have been secured according to the company's security procedures. Examples are: - anti-virus / malware on server - password management enabled (log-on attempts, password change timeframe, password history) - admins have different passwords for admin accounts and non-admin accounts - disabling LM hashes - encryption - network segmentation - enable firewall - remote administration of servers over secure channels
  • 69. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures C14 Verify that changes made to current systems (setting up interfaces, extracting data, importing data) follow the company's change management procedures. - changes are documented - changes are tested - changes are approved by business and IT prior to migration into production environment - quality assurance review C15 Verify that the data cleansing has been performed by determining if the Project Team verified that: - All mandatory fields are populated - All records are present - Default or dummy values cannot be inserted where there is missing data - Data is complete - No duplication of data fields C16 For data that has not been cleansed, determine potential risks and impacts to the project. Determine if error tolerances have been evaluated against the approved thresholds stated in the Data Conversion Plan. C17 Verify that the Project Team has verified the accuracy, integrity and completeness of data conversion to the test system by reviewing test documentation.
  • 70. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures C18 Verify that data converted to the test system is complete, accurate, and has integrity. - batch and control totals - check sums / digits - range checks - date and time stamps - use a data analysis tool to compare a sample of data from the old system and the new system - verify a test sample of data to source documentation C19 Verify that the Project Team addresses any errors or omissions identified as part of testing the data conversion. C20 Verify that appropriate controls are in place to prevent or detect any data manipulation during the conversion process and that they are operating effectively. C21 Verify that the Project Team has maintained documentation of process design, configuration, and customization. - flow charts - screenshots - exhibits of code - online and batch operating instructions - system narratives - configuration baselines
  • 71. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures C22 At the end of the system build phase, verify that the Project Team has created the User Manual. The manual may include: - description of the system - use of the system - input data and parameters - output data - operating procedures - error identification and resolution - user responsibilities related to security, privacy and internal controls C23 At the end of the system build phase, verify that the Project Team has created the Operations and Maintenance Manual. This manual may include: - description of software - instructions to operate software - technical flow charts - exhibits of code - technical specifications - security specifications - description of internal controls - description of non-routine procedures and security requirements - procedures for error resolution - maintenance procedures - configuration baselines C24 Determine if any change orders have been approved. If so, verify if the project budget cost, labor hours and timeline have been updated. Determine if there is any risk due to scope creep. C25 Verify that any milestone(s) achieved during this phase have been reviewed and approved by the Project Sponsor.
  • 72. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures C26 Verify that the Project Lead has reviewed the Project Plan to ensure that the project is on target with budgets, milestones and timeline. Verify that Project Lead has reassessed the project risks for the activities in this phase. Verify the Project Lead has updated the Project Plan, if necessary. C27 Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project in the testing phase (e.g. going over budget in the design and build phase may lead to decreasing hours dedicated to testing system). C28 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. D1 Verify that a Test Plan has been created and includes the following: - testing methodology, including types of tests to be performed (e.g. functional, unit, integration, end-to-end, acceptance, performance, parallel / pilot, volume / stress, regression, quality assurance, penetration, scanning, fuzzing, testing for failures, security) - Testing procedures - Testing templates / scripts (purpose, procedure, conclusion, sign-off) - Testing documentation to be maintained, along with retention period - Reporting, tracking and remediating issues identified during testing - Acceptance and approval of test results - test location and preparation D2 Verify that the Test Plan is in compliance with company policy and procedures. Section D - Pre-Implemetntation: Test
  • 73. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures D3 Verify that the Test Plan has been reviewed and approved by the Project Leader and Project Sponsor. D4 Verify that there is a separate test environment from the development and production environment. D5 Verify that the test environment simluates the production environment. D6 Verify that the Project Team has identified all employees to be used in the testing process. Verify that these employees: - have been provided training on how to use the system - have been provided a copy of the Test Plan - understand their roles and responsibilities regarding testing the system - have the availability to perform the required test scripts and retest if necessary - are from business areas in the company that will be using the system D7 Verify that test scripts have been created for all tests that are to be performed and have been mapped back to System Development Plan specifications. D8 Verify that the test scripts created are testing for failures in the process or negative testing where users can't perform functions that are beyond their authorization or responsibilities. D9 Verify that test scripts include testing of security and system controls. D10 Verify that the Project Team is tracking the performance and completion of all test scripts. D11 Verify that the Project Team is tracking all issues identified on a log where the issue is assigned to an owner for resolution. Verify that the remediated issue is retested with a satisfactory result.
  • 74. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures D12 Verify that the Project Team is tracking testing documentation and ensuring it is being maintained for all test scripts. D13 Select a sample of test scripts and observe the Testers performing the tests. Verify that the Testers are performing the tests in accordance with the Test Plan. D14 Select a sample of test scripts and reperform. Compare the audit results to the Tester's results. D15 Use a data analysis tool to identify any gaps in the security or internal control requirements. D16 Verify that the User Manual and / or Operations Manual have been updated for any changes that occurred during the testing phase to ensure complete and accurate system documentation. D17 Determine if any change orders have been approved. If so, verify if the project budget cost, labor hours and timeline have been updated. Determine if there is any risk due to scope creep. D18 Verify that any milestone(s) achieved during this phase have been reviewed and approved by the Project Sponsor. D19 Verify that the Project Lead has reviewed the Project Plan to ensure that the project is on target with budgets, milestones and timeline. Verify that Project Lead has reassessed the project risks for the activities in this phase. Verify the Project Lead has updated the Project Plan, if necessary. D20 Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project in the go-live phase. D21 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. Section E - Pre-Implementation: System Pre Go-live & Data Conversion
  • 75. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures E1 Verify that an Implementation Plan has been created and includes: - implementation schedule - development of production environment - testing of production environment - securing production environment - data conversion - data back-up - contingency / fallback plan - approvals to go live - resolution of any issues identified prior to go-live - acceptance of any unresolved issues identified - tracking go-live tasks (e.g. checklist) - go / no-go criteria E2 Verify that the Implementation Plan is in compliance with company policy and procedures. E3 Verify that the Implementation Plan has been reviewed and approved by the Project Lead, Project Sponsor, and System Implementor. E4 Evaluate the implementation schedule and determine if it is reasonable and achievable. E5 Verify that the data in the current system is backed up prior to converting data to the new system.
  • 76. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures E6 Verify that data converted to the production system is complete, accurate, and has integrity. - batch and control totals - check sums / digits - range checks - date and time stamps - user reconciliations / data validation - use a data analysis tool to compare a sample of data from the old system and the new system - verify a test sample of data to source documentation E7 Verify that appropriate controls are in place to prevent or detect any data manipulation during the conversion process and that they are operating effectively. E8 Verify that the Project Team addresses any errors or omissions identified as part of testing the data conversion prior to going live with the system. E9 Verify that all test scripts have been completed and any issues identified during the testing phase have been resolved prior to the system going live. E10 Verify that tests scripts performed on the production environment have been completed and any issues identified have been resolved prior to the system going live. E11 Verify that unresolved issues have been identified by the Project Lead and are being tracked. E12 Verify that any unresolved issues that will not be addressed prior to go live will not have a significant impact on the production system. E13 Verify that unresolved issues have been reviewed and approved by the Project Sponsor and Project Steering Committee prior to going live.
  • 77. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures E14 Verify that the production environment has the appropriate security controls to prevent access to the system by administrators or the system implementors once the system is live. E15 Verify that the Security group has reviewed the security specifications of the system and has approved it to go-live. E16 Verify that the system owner has reviewed and approved the access rights of end users and assignment of user groups. E17 Verify that the Project Lead has communicated the results of the system build and testing phases to the Project Steering Committee, along with any issues that are expected to be unresolved by the go-live date. E18 Verify that the Project Steering Committee has approved the system to go live. E19 Verify that all tasks on the go-live checklist have been signed-off on prior to going live. E20 Verify that any milestone(s) achieved during this phase have been reviewed and approved by the Project Sponsor. E21 Verify that the Project Lead has reviewed the Project Plan to ensure that the project is on target with budgets, milestones and timeline. Verify that Project Lead has reassessed the project risks for the activities in this phase. Verify the Project Lead has updated the Project Plan, if necessary. E22 Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project and consider discussing with the Project Steering Committee. E23 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. Section F - Pre-Implementation: Training
  • 78. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures F1 Verify that the Project Team has developed a training program based off of the User Manual and Operations Manual. F2 Verify that end users, super users, and technical support personnel are properly trained on the new system. F3 Review training schedule and attendance sheets to determine that users attended the training. F4 Verify that surveys were provided to users regarding feedback on the training materials. Verify that comments are incorporated into the training program and / or User Manual. F5 Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor. G1 Verify that management has committed the appropriate additional resources to support the system and respond to end users' needs post go- live for a predetermined amount of time (e.g 3 months). G2 Verify that in-house support personnel have stated service level agreement metrics to meet the needs of the end users timely. G3 Determine if the level of support is meeting its SLA metrics. G4 Determine if management will be relying on vendor support for the system. If so, obtain and review support contract for terms and agreement, confidentiality, and access rights. Determine level of support during an incident / disaster. G5 Verify that all support personnel have received training on the Operations Manual. G6 Verify that any changes made to the system by support personnel follow the company's change management policy and procedures. Section G - Post Implementation: Support & Maintenance
  • 79. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures G7 Verify that there is a process in place to update the Operations Manual based on changes made.Verify that there is a process in place to update the Operations Manual based on changes made. G8 Verify that the system is included in the patch management policy and procedures. G9 Verify that the hardware and software associated with this implementation project have been included in the company's inventory listing of IT assets. H1 Verify that the Project Lead has performed a post implementation assessment. The assessment should include: - determination if project objectives were achieved - assessment on cost benefit analysis presented in business case - assessment of project budgets (cost, labor hours, timeline) in comparison with actual results - project metrics, KPIs - feedback from end users on acceptance of system - identifying lessons learned H2 Evaluate the lessons learned identified by the Project Lead and determine if they address the findings noted in the audit memorandums issued. H3 For any unresolved issues, verify that they have been assigned an owner and estimated completion date. Verify that unresolved issues are tracked and closed out timely. H4 Verify that the Project Lead presented the post implementation assessment results to the Project Steering Committee. Section H - Post Implementation: Review of Project Results & Close Out
  • 80. Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off Reviewer Sign- off Audit Procedures H5 Verify that project documentation is properly secured and retained according to retention policy and procedures. H6 Verify that the Project Lead has obtained approval from the Project Steering Committee to close the project. I1 Verify that the ITGC and business process internal control documentation (e.g. narrative, flow charts, matrices) have been created or modified to accommodate the new system. I2 Verify if policies, procedures, and internal controls have been revised based on the project's lessons learned. Test the internal controls to verify that they are operating effectively. a. Test the ITGC controls. b. Test the Business Process controls. I4 Verify that the new system has been added to the Disaster Recovery Procedures Manual. (Note: based on the criticality of the system, the company may decide not to include it in the DRP. In this situation, assess if the system owner needs to consider a business continuity plan). Secion I - Post Implementation: Internal Controls Assessment I3
  • 81. Audit Name: ________________________________ Evaluation Criteria Excellent Good Fair Poor Not applicable / Don't Know Objectivity of auditor team Understanding the business & your department Technical proficiency of audit team Uses technology appropriately Professionalism of audit team Communication skills of audit team Interpersonal skills of audit team Works well with your team Helps you manage and implement change Notification of the audit purpose and scope Audit focused on key areas & risks Department's concerns and perspective considered Duration of the audit Level of creativity Usefulness of the audit Disruption of activities was minimal Sharing of best practices Feedback of findings during the audit Timeliness of the audit report Clarity of the audit report Accuracy of the audit findings Value of the audit recommendations Provides workable solutions for audit recommendations Timely follow-up on corrective action Improved Significantly Improved Stayed the same Declined Declined significantly How has the quality of service you received changed from previous audits you experienced? Internal Audit Quality Assurance In an effort to provide continuous improvement in the service we provide to you and the organization, would you please take a few moments to complete this short survey and return it promptly as indicated below? Thank you! Independence Professional Proficiency Scope of Work Performance of Audit Work Was there anything about the audit you especially liked?
  • 82. Please return survey to: ________________________ Are there any recommendations for improvement that you would like us to consider? Was there anything about the audit you especially disliked? Additional Comments: Name: _____________________________________ Date: ______________________________________
  • 83. Below is a list of resources that may be used during an SDLC audit: ISACA • COBIT 5 Enabling Processes • COBIT 5 - Governance and Management Practices Activities (COBIT 5 Toolkit) • COBIT 5 for Assurance • Systems Development and Project Management Audit / Assurance Program (based off of COBIT 4.1) IIA • GTAG 12: Auditing IT Projects • GTAG 14: Auditing User-developed Applications • GTAG 5: Managing and Auditing Privacy Risks • GTAG 8: Auditing Application Controls • GAIT for Business and IT Risk • GAIT for IT General Control Deficiency Assessment • GAIT Methodology • Top 10 System Implementation Audit Considerations (by PwC) COSO Internal Control -- Integrated Framework National Institute of Standards and Technology (NIST) • SP 800-53 rev.4: Security and Privacy Controls for Federal Information Systems and Organizations. • SP 800-64 rev.2: Security Considerations in the System Development Life Cycle Twenty Critical Security Controls (maintained by Council on Cyber Security) Project Management Body of Knowledge (aka PMBOK - maintained by Project Management Institute) AuditNet (subscription based) Protiviti's Knowledgeleader (subscription based)