The document provides an overview of IT auditing, detailing the roles and responsibilities of IT auditors, the certifications offered by ISACA, and the phases of an IT audit including pre-audit, audit, and post-audit processes. It discusses various auditing techniques for applications and technology, emphasizing the importance of security, data management, and compliance during audits. Overall, it serves as a comprehensive guide for understanding IT audits and the standards for conducting them effectively.

1. IT System &
Security Audit
JBIMS MIM SEM V 2015-2018
MUFADDAL NULLWALA – 15-I-131

2. Contents
1. Defining an IT Auditor
2. IT Auditor Certifications & ISACA
3. IT Audit Phases
4. Preparing to be Audited
5. How IT auditor audits an Applications
6. Auditing technology for Information System

3. IT Auditor
 An IT auditor identify ways in which an organization's
computer systems meets its needs, review configuration of
hardware and software programs designed for new
systems and check if the system controls are adequate.
 CISA, CISM, Networking, Hardware, Software, Information
quality Assurance, Cryptography Experts etc.
 IT Audits are done in Teams

4. ISACA
 www.isaca.org - ISACA is an international professional
association focused on IT governance.
 Originated in United States in 1967
 Certifications
Certified Information Systems Auditor (CISA)
Certified Information Security Manager (CISM)
Certified in the Governance of Enterprise IT (CGEIT)
Control Objectives for Information and Related Technology
(COBIT) 5
Certified in Risk and Information Systems Control (CRISC)
Cybersecurity Nexus Practitioner (CSX-P)

5. CISA
 The CISA (Certified Information Systems Auditor)
certification is renowned all across the globe as a standard
for Business Systems and Information technology
professionals who audit, monitor, access, and control data.
 Min. of 5 years of IS auditing, control or security work
experience
 Code of professional ethics
 Adhering to IS auditing standards

6. CISM
CISM – Certified Information Security Manager
Specialization
Information Security Governance
Risk Management
Information Security Program Management
Information Security Management
Response Management

7. Audit Phases

8. Pre-Audit
 Define Scope & Objectives
 Set Audit Intent
 Past Audit
 Review current Policies
 Audit Plan
 Checklists
 Site Survey (if required in some cases)

9. Audit
 Site Survey
 Meet Site Managers - What data, How & when it will be
collected
 Data Collection
 Interview Staff
 Access Control Assessments
 Vulnerability Assessments
 Exit meeting - Immediate problems, Questions & answer
for site managers, Preliminary findings

10. Post – Audit (Reporting)
 Preparation of detailed audit report
 Report contains
Introduction
Audit findings presented in separate sections
Auditors overall conclusion & opinion
Auditors reservations with respect to the audit
Detailed Audit findings & recommendations
Documents & references used
Materiality of Findings

11. Preparing To Be Audited
Audits are not for Confrontation
Auditees should participate & make themselves available
during the Audit
Auditees should make themselves aware of
 Intent/scope & objectives of the Audit
 What type of data will be collected
 What data should not be collected
 Auditors should also know that what data shouldn’t be
collected

12. Application Audit
 An assessment whose scope focuses on Business Critical
Processes or Application
 Any application or software running in the company to
carry out business
E.g. Payroll process that may span across several different
servers, databases, operating systems, applications, etc.
The level of controls is dependent on the degree of risk
involved in the incorrect or unauthorized processing of
data

13. Application Audit (cont.)
 Administration
 Inputs, Processing, Outputs
 Logical Security
 Disaster Recovery Plan
 Change Management
 User Support
 Third Party Services
 General Controls

14. Application Audit -
Administration
 The most important area of the audit, because this area
focuses on the overall ownership and accountability of the
application
 Roles & Responsibilities - development, change approval,
access authorization
Legal and Regulatory compliance issues

15. Application Audit - Inputs,
Processing, Outputs
 Looking for evidence of data preparation procedures,
reconciliation processes, handling requirements, etc.
 Run test transactions against the application
 Includes who can enter input and see output
 Retention of output and its destruction

16. Application Audit - Logical
Security
Looking at user creation and authorization as governed by
the application its self
User ID linked to a real person
Number of allowable unsuccessful log-on attempts
Minimum password length
Password expiration

17. Application Audit - Disaster
Recovery Plan
Looking for an adequate and performable disaster
recovery plan that will allow the application to be
recovered in a reasonable amount of time after a disaster
Backup guidelines, process documentation, offsite storage
guidelines, SLA’s with offsite storage vendors, etc.

18. Application Audit - Change
Control
 Examines the process changes to an application go
through
 Process is documented, adequate and followed
 Who is allowed to make a request a change, approve a
change and make the change
 Change is tested to check if it doesn’t break compliance
(determined in Administration) before being placed in to
production

19. Application Audit - User
Support
 One of the most overlooked aspects of an application
 User documentation (manuals, online help, etc.) - available
& up to date
 User training - productivity, proper use, security
 Process for user improvement requests

20. Application Audit - General
Controls
Examining the environment the application exists within
that affect the application
System administration / operations
Organizational logical security
Physical security
Organizational disaster recovery plans
Organizational change control process
License control processes
Virus control procedures

21. II. Auditing Technology for
Information Systems
 Review of Systems Documentation
 Test Data
 Integrated-Test-Facility (ITF) Approach
 Parallel Simulation
 Audit Software
 Embedded Audit Routines

22. Review of Systems Documentation
The auditor reviews documentation such as narrative
descriptions, flowcharts, and program listings.
In desk checking the auditor processes test or real data
through the program logic.

23. Test Data
The auditor prepares input containing both valid and
invalid data. Prior to processing the test data, the input is
manually processed to determine what the output should
look like.
The auditor then compares the computer-processed output
with the manually processed results.

24. Illustration of Test Data
Approach
Computer Operations Auditors

25. Integrated Test Facility (ITF)
Approach
A common form of an ITF is as follows:
 A dummy ITF center is created for the auditors.
 Auditors create transactions for controls they want to
test.
 Working papers are created to show expected results
from manually processed information.
 Auditor transactions are run with actual transactions.
 Auditors compare ITF results to working papers.

26. Illustration of ITF Approach

27. Parallel Simulation
The test data and ITF methods both process test data
through real programs. With parallel simulation, the
auditor processes real client data on an audit program
similar to some aspect of the client’s program.
The auditor compares the results of this processing with
the results of the processing done by the client’s program.

28. Audit Software
 Computer programs that permit computers to be used as
auditing tools include:
 Generalized audit software
Perform tasks such as selecting sample data from file,
checking computations, and searching files for unusual
items.
 P.C. Software
Allows auditors to analyze data from notebook computers
in the field.

29. Embedded Audit Routines
 In-line Code – Application program performs
Audit data collection while it processes data for normal
production purposes.
 System Control Audit
Review File (SCARF)– Edit tests for audit transaction
analysis are included in program. Exceptions are written to
a file for audit review.