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  • Expert Teaching: Understanding IT General Controls

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    Adrian Anthony Contillo
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    The document discusses expert teaching on understanding IT general controls. It provides an overview of understanding the IT environment, defining and identifying IT general controls, and conducting an IT general controls walkthrough. Specific topics covered include the purpose and components of logical access controls, manage change controls, and other IT general controls. The objectives of IT general controls and how they can affect application controls are also summarized.

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    IT General Controls

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    The document discusses expert teaching on understanding IT general controls. It provides an overview of understanding the IT environment, defining and identifying IT general controls, and conducting an IT general controls walkthrough. Specific topics covered include the purpose and components of logical access controls, manage change controls, and other IT general controls. The objectives of IT general controls and how they can affect application controls are also summarized.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    147 views17 pages

    Expert Teaching: Understanding IT General Controls

    Uploaded by

    Adrian Anthony Contillo
    The document discusses expert teaching on understanding IT general controls. It provides an overview of understanding the IT environment, defining and identifying IT general controls, and conducting an IT general controls walkthrough. Specific topics covered include the purpose and components of logical access controls, manage change controls, and other IT general controls. The objectives of IT general controls and how they can affect application controls are also summarized.

    Copyright:

    © All Rights Reserved
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    of 17

    Expert Teaching:

    Understanding IT
    General Controls

    Lecturer:
    Lecturer: Mr.
    Mr. McLein
    McLein Bagunu,
    Bagunu,
    CPA,
    CPA, CISA
    CISA
    • Understand the IT Environment
    • Define and Identify IT General
    Controls
    • Develop an understanding for the IT
    Objectives audit process
    • Conduct an IT General Controls
    Walkthrough
    • Example Tests of IT Controls
    • Conclude and Document our Results

    ICTE 1053
    • Understand the IT Environment
    • Purpose:
    – Identify all significant applications and
    infrastructure
    – Relationship between process and
    IT applications
    Environment – Relationship between applications and
    infrastructure
    – Indicate where we might want to rely on
    electronic
    audit evidence
    – Identify areas on which to focus our
    review

    ICTE 1053
    IT General Control Approach

    ICTE 1053
    • Effective IT general controls:
    – Help make sure that application controls
    function effectively over time
    Effect of ITGC
    on Application • Ineffective IT general controls:
    Controls – Application controls might still operate
    effectively.
    – Affects both financial statement and
    internal control audit strategy, such as the
    nature, timing, and extent of tests of
    application controls

    ICTE 1053
    • Change Management:
    – Only appropriately authorized, tested and
    approved changes are made

    IT General • Logical Access:


    – Only authorized persons have access to the
    Control system, and they can only perform specifically
    Objectives authorized functions

    • Other IT General Controls (including IT


    operations):
    – Process to determining that IT resources and
    applications continue to function as intended
    over time.
    ICTE 1053
    • General system security settings are
    appropriate.
    • Password settings are appropriate.
    • Access to privileged IT functions is limited
    Logical to appropriate individuals.
    • Access to system resources and utilities is
    Access limited to appropriate individuals.
    • User access is authorized and appropriately
    Controls established.
    • Physical access to computer hardware is
    limited to appropriate individuals.
    • Logical access process is monitored.
    • Segregation of incompatible duties exists
    within logical access environment.
    ICTE 1053
    • Financial data has been backed‐up
    and is recoverable.
    Other IT • Deviations from scheduled processing
    General are identified and resolved in a timely
    Controls manner.
    • IT Operations problems or incidents
    are identified, resolved, reviewed, and
    analyzed in a timely manner.

    ICTE 1053
    • What is the manage change scope?
    – New system implementations (SDLC)
    – Upgrade of existing system
    – Addition of new functionality to an
    Manage existing system
    Change – New or changed interfaces
    connecting different applications
    – Minor enhancement
    – Patch to an existing system
    – Emergency changes
    – Configuration changes
    ICTE 1053
    • Changes are authorized.
    Manage • Changes are tested.
    • Changes are approved.
    Change • Changes are monitored.
    Controls • Segregation of incompatible
    duties exists within the manage
    change environment.

    ICTE 1053
    Logical Access Process Components

    ICTE 1053
    Why do we perform walkthroughs?

    • To confirm:
    – Our understanding of the processing
    Purpose of procedures
    Walkthroughs – Our understanding of the relevant
    controls
    – That relevant controls have been
    placed in operation and are operating
    effectively
    – Our documentation
    ICTE 1053
    • Methods of gathering evidence during
    walkthroughs:
    – Inquiring of a client to corroborate our
    understanding
    – Selecting an item over which the controls
    Methods in are designed to operate and inspecting
    evidence of the operation of the controls on
    Walkthroughs that item
    – Examining the client’s documentation of
    the control’s design
    – Examining reports used to monitor the
    controls
    – Observing whether the process owner or
    others act upon the results of the controls
    ICTE 1053
    • Following the walkthrough, we
    Result of make a preliminary evaluation
    Walkthroughs of the effectiveness of controls
    • The preliminary evaluation is
    made for each IT general control

    ICTE 1053
    • Determine whether the controls:

    – Operated as we understood they


    would operate
    Test of – Were applied throughout the period
    Controls of intended reliance
    – Were applied on a timely basis
    – Encompassed applicable transactions
    – Were based on reliable information
    – Resulted in the timely correction of
    any errors identified
    ICTE 1053
    Any Questions? Gora na! 😊

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