Information Technology Control and Audit

The new edition of a bestseller, Information Technology Control and Audit, Fourth Edition provides a comprehensive and up-to-date overview of IT governance, controls, auditing applications, systems development, and operations. Aligned to and supporting the Control Objectives for Information and Related Technology (COBIT), it examines emerging trends and defines recent advances in technology that impact IT controls and audits—including cloud computing, web-based applications, and server virtualization. Filled with exercises, review questions, section summaries, and references for further reading, this updated and revised edition promotes the mastery of the concepts and practical implementation of controls needed to manage information technology resources effectively well into the future. Illustrating the complete IT audit process, the text: Considers the legal environment and its impact on the IT field—including IT crime issues and protection against fraud Explains how to determine risk management objectives Covers IT project management and describes the auditor’s role in the process Examines advanced topics such as virtual infrastructure security, enterprise resource planning, web application risks and controls, and cloud and mobile computing security Includes review questions, multiple-choice questions with answers, exercises, and resources for further reading in each chapter This resource-rich text includes appendices with IT audit cases, professional standards, sample audit programs, bibliography of selected publications for IT auditors, and a glossary. It also considers IT auditor career development and planning and explains how to establish a career development plan. Mapping the requirements for information systems auditor certification, this text is an ideal resource for those preparing for the Certified Information Systems Auditor (CISA) and Certified in the Governance of Enterprise IT (CGEIT) exams. Instructor's guide and PowerPoint® slides available upon qualified course adoption.

Table of Contents:
A FOUNDATION FOR IT AUDIT AND CONTROL Information Technology Environment: Why Are Controls and Audit Important? IT Today and Tomorrow Information Integrity, Reliability, and Validity: Importance in Today’s Global Business Environment Control and Audit: A Global Concern E-Commerce and Electronic Funds Transfer Future of Electronic Payment Systems Legal Issues Impacting IT Federal Financial Integrity Legislation Federal Security Legislation Privacy on the Information Superhighway Privacy Legislation and the Federal Government Privacy Act Security, Privacy, and Audit Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading The Legal Environment and Its Impact on Information Technology IT Crime Issues Protection against Computer Fraud Computer Fraud and Abuse Act Computer Abuse Amendments Act Remedies and Effectiveness Legislation Providing for Civil and Criminal Penalties Computer Security Act of 1987 Homeland Security Act of 2002 Privacy on the Information Superhighway National Strategy for Securing Cyberspace Methods That Provide for Protection of Information Web Copyright Law Privacy Legislation and the Federal Government Privacy Act Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Other Internet Sites Audit and Review: Their Role in Information Technology The Situation and the Problem Audit Standards Importance of Audit Independence Past and Current Accounting and Auditing Pronouncements AICPA Pronouncements: From the Beginning to Now Other Standards Financial Auditing Generally Accepted Accounting Principles Generally Accepted Auditing Standards IT Auditing: What Is It? Need for IT Audit Function Auditors Have Standards of Practice Auditors Must Have Independence High Ethical Standards Auditor: Knowledge, Skills, and Abilities Broadest Experiences Supplemental Skills Trial and Error Role of the IT Auditor Types of Auditors and Their Duties, Functions, and Responsibilities Legal Implications Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Audit Process in an Information Technology Environment Audit Universe Risk Assessment Audit Plan Developing an Audit Schedule Audit Budget Objective and Context Using the Plan to Identify Problems Audit Process Preliminary Review Preliminary Evaluation of Internal Controls Design Audit Procedures Fieldwork and Implementing Audit Methodology Validation of Work Performed Substantive Testing Documenting Results Communication Strategy Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Auditing IT Using Computer-Assisted Audit Tools and Techniques Auditor Productivity Tools Using Computer-Assisted Audit Tools in the Audit Process Flowcharting Techniques Flowcharting as an Analysis Tool Appropriateness of Flowcharting Techniques Computer-Assisted Audit Tools and Techniques for Application Reviews Computer-Assisted Audit Tools and Techniques for Operational Reviews Web Analysis Tools Web Analysis Software as an Audit Tool Computer Forensics Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Managing IT Audit IT Auditor Career Development and Planning Establishing a Career Development Plan Evaluating IT Audit Quality Terms of Assessment IT Audit and Auditor Assessment Form Criteria for Assessing the Audit Criteria for Assessing the Auditor Applying the Concept Evaluation of IT Audit Performance What Is a Best Practice? Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading IT Auditing in the New Millennium IT Auditing Trends New Dimension: Information Assurance IT Audit: The Profession A Common Body of Knowledge Certification Continuing Education A Code of Ethics and Professional Standards Educational Curricula New Trends in Developing IT Auditors and Education Career Opportunities in the Twenty-First Century Public Accounting Private Industry Management Consulting Government Role of the IT Auditor in IT Governance IT Auditor as Counselor IT Auditor as Partner of Senior Management Educating the Next Generation on IT Audit and Control Opportunities Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading AUDITING IT PLANNING AND ORGANIZATION IT Governance IT Processes Enterprise Risk Management Regulatory Compliance and Internal Controls Performance Measurement Metrics and Management Metric Reporting Independent Assurance Participation in IT Audit Planning Control Framework Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Strategy and Standards IT Processes Strategic Planning IT Steering Committee Portfolio Management Demand Management Project Initiation Technical Review Architecture and Standards Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Risk Management IT Processes Technology Risk Management An Example of Standards: Technology Risk Management Regulations Where Does Technology Risk Management Belong? IT Insurance Risk How to Determine IT Insurance Coverage Available Guidance Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Process and Quality Management IT Processes Roles and Responsibilities Separation of Duties Resource Management Managing Quality Quality Management Standards How Maturity Correlates to Quality IT Process Framework Auditing Policies and Procedures Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Financial Management IT Processes Financial Management Framework Investment Approval Process Project Pricing Realizing the Benefits from IT Investments Financial Planning Identify and Allocate Costs Determining Charging Method Structure of U.S. Guidance IT Asset Management Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading IT ACQUISITION AND IMPLEMENTATION IT Project Management IT Processes Project Management Body of Knowledge Auditor’s Role in the Project Management Process Example of Project Management Checkpoints and Tools in a Telecom Project Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Software Development and Implementation IT Processes Approaches to Software Development Software Development Process Prototypes and Rapid Application Development End-User Development Traditional Information Software Development System Implementation Process Help Desk and Production Support Training and Readiness Auditor’s Role in the Development Process Risk Assessment Audit Plan Software Development Controls Review Software Development Life Cycle Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading IT Sourcing IT Processes Sourcing Strategy Software Acquisition Process Prototypes and Rapid Application Development The Requirements Document Off-the-Shelf Solutions Purchased Package Contracted Development Outsourcing a System from Another Organization Request for Information Request for Bid Request for Proposal Evaluating Proposals Procurement and Supplier Management IT Contract Issues Strategic Sourcing and Supplier Management Auditing Software Acquisitions Prototypes Other Resources for Help and Assistance Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Application Controls and Maintenance IT Processes Application Risks Electronic Data Interchange Application Risks Application Controls Web-Based Application, Risks, and Controls Documentation Requirements Application Software Life Cycle Application Maintenance Corrective Maintenance Adaptive Maintenance Perfective Maintenance Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Change Management IT Processes Change Management Importance of Change Control Change Control Change Management System Change Request Process Impact Assessment Controls over Changes Emergency Change Process Revisions to Documentation and Procedures Authorized Maintenance Software Release Policy Software Distribution Process Change Management Tools Change Management Procedures Configuration Management Organizational Change Management Organizational Culture Defined Audit Involvement Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading IT DELIVERY AND SUPPORT Service Management IT Processes Information Technology Infrastructure Library Implementing IT Service Management Review Services and Requirements Define IT Services Service-Level Agreements Service Design and Pricing Processes to Engage Services Roles and Responsibilities Ongoing Service Management Service Management of Third Parties Evolution of Standards Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Service Desk and Problem Management IT Processes Training Service Desk Incident and Problem Management Case Example: Acme Computing Services Business Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Security and Service Continuity IT Processes Information Systems Security Security Threats and Risks Security Standards Information Security Controls Information Custodian Responsibilities User Responsibilities Third-Party Responsibilities Information Classification Designations Contingency and Disaster Recovery Planning Written Disaster Recovery Plan Mission Statement for Disaster Recovery Plan Disaster Recovery Plan Tests and Drill Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading System Management IT Processes Systems Software Systems Maintenance Database Technology Database Management Systems Recovery Capacity Management Server Virtualization Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Operations Management IT Processes Operational Maturity Operating Policy and Procedures Data Files and Program Controls Physical Security and Access Controls Environmental Controls Output Controls Data Communications Controls Data Center Reviews Software and Data Security Controls Physical and Environmental Controls Management Data Access Management Policy and Procedures Documentation Data and Software Backup Management Other Management Controls End-User Computing Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Tools for Network Monitoring The Internet, Intranet, and Extranet ADVANCED TOPICS Virtual Environment Virtual Environment Cloud Computing Mobile Computing IT Operations Issues in Network Installation Types of WANs Elements of WANs Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Virtual Infrastructure Security and Risks Information Flows in the Current Marketplace Interconnected Systems and E-Commerce Battleground: The Internet Tools Exploiting the TCP/IP Holes Recommendation to IT Auditors, Security, and IT Professionals Intranet/Extranet Security Wireless Technology Identity Theft Conclusions Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Internet References Virtual Application Security and Risks E-Commerce Application Security as a Strategic and Structural Problem Information Security Management Systems A Planning and Control Approach to E-Commerce Security Management Web Application Risks Internet Security Case Example: GMA Business Overview and Profile Mobile Computing Security Conclusion Review Questions Multiple-Choice Questions Exercises Answers to Multiple-Choice Questions Further Reading Enterprise Resource Planning ERP Solutions Benefits of ERP Solutions Key Risks of ERP Solutions Implementing ERP Systems ERP Data Warehouse Appendices: Information Technology Audit Cases Bibliography of Selected Publications for Information Technology Auditors Professional Standards That Apply to Information Technology (Audit, Security, and Privacy Issues) Glossary Sample Audit Programs Index

About the Author :
Frederick Gallegos, MBA, has expertise in IT Audit Education, IS Auditing, Security, and Control of Information Systems; Legal Environment of Information Systems; Local Area and Wide Area Network Security and Controls; Computer Ethics, Management Information Systems, Executive Support Systems, Internet as an Audit Resource. He has more than 35 years of teaching and practical experience in the field, published four books, and authored and coauthored more than 200 articles in the aforementioned subjects. He received his BS and MBA from the California State Polytechnic University, Pomona, California. He has a California Community College Instructor Credential. He taught for the Computer Information Systems Department, College of Business at California State Polytechnic University, Pomona, California, from 1976 to 1996 (part-time) and full-time from 1996 to 2006. After 30 years of teaching, he retired in September 2006 and received the lecturer emeritus status from the university in May 2007. In February 2008, he received the Computer Information Systems (CIS) Lifetime Achievement Award from the CIS Department at Cal Poly, Pomona, California. He continues to maintain contact and provides consulting services with his past undergraduate and graduate students and alumni of the CIS Department’s Information Assurance programs from the California State Polytechnic University, Pomona, California. Before teaching full-time at Cal Poly (1996–2006), Gallegos worked for GAO—Los Angeles Regional Office (1972–1996) and advanced within GAO to serve as manager, Management and Evaluator Support Group. He managed staff involved in Office Automation, Computer Audit Support, Computer Audit, Training, Human Resource Planning and Staffing, Technical Information Retrieval and Security/Facilities Management. He retired from GAO in 1996 with 26 years of federal and military service. He is a recipient of several service awards from GAO, EDP Audit, Control, and Security Newsletter (EDPACS), and ISACA that recognized his past contributions to the field and his efforts in the establishment of formal universities courses at his alma mater in IS Auditing, Control and Security at the undergraduate level in 1979 with the implementation of Association to Advance Collegiate Schools of Business (AACSB) accredited graduate-level Master of Science in Business Administration Degree program in IS Auditing since 1980. (The AACSB was founded in 1916 to accredit schools of business worldwide.) Gallegos has spoken widely on topics related to the IS Audit, Control, and Security field. Sandra Senft, MSBA-IS Audit, CISA, CIA, is an executive with more than 30 years of combined experience in auditing, financial management, insurance, and information technology (IT). During her career in IT, her responsibilities included finance, process improvement, project management, quality management, service management, sourcing, and vendor management.Sandra developed an extensive understanding of the IT and financial disciplines in her role as the global chief financial officer for Group IT within Zurich Financial Services in Zurich, Switzerland. Prior to that she was the Assistant Vice President for IT Support Services at Farmers Insurance in Los Angeles, CA. She was responsible for the Project Management Office, IT Finance, Quality Assurance, Sourcing and Vendor Management, Service Management, and Asset Management. During her career as an IS auditor and IS audit manager, she specialized in auditing systems development projects as well as general control audits of mainframe and distributed systems, information security, disaster recovery, and quality assurance. She was also responsible for defining and developing the audit risk methodology, audit methodology, automated audit workflow system, and training audit staff. She was a faculty member of California State Polytechnic University, Pomona, California, from 1997 to 2000, where she taught undergraduate and graduate courses in IT and IS auditing. She has also presented IS auditing topics at seminars, conferences, and CISA review courses specializing in systems development auditing. She has authored and coauthored several articles on IT controls and audit for Auerbach Publications. Sandra graduated from California State Polytechnic University, Pomona, California, with a Master of Science in business administration option in IS auditing and a Bachelor of Science in accounting. She is a non-practicing Certified Information Systems Auditor (CISA) and Certified Internal Auditor (CIA). She served as president, treasurer, director of research and academic relations, and spring conference chair for the Los Angeles Chapter of ISACA. Aleksandra Looho Davis, MSBA-IS Audit, CISA, CIA, CPA, has over 15 years of combined experience in auditing, financial management, insurance, and risk management. Currently, she is an IT Audit Principal at a leading insurance company in California. Throughout her career, Aleksandra has spearheaded several Compliance Programs, including SOX 404, and continues to incorporate improvements to ensure sustainability of the programs. She also consults on key company initiatives to help ensure that adequate controls are considered, provides audit and other consulting services, including Enterprise Risk Management (ERM), Business Continuity/Disaster Recovery (BC/DR), and Quality Assessment and Improvement Program (QAIP). Aleksandra also facilitates communication to help increase internal controls awareness and is a liaison to external auditors. Aleksandra graduated from California State Polytechnic University, Pomona, California, with a Master of Science in Business Administration option in IS Auditing. As a former past president of the Los Angeles Chapter of ISACA, Aleksandra has been an active chapter volunteer and supporter since she was in her graduate program. Her graduate paper on IS Audit Training Needs was awarded first prize at the ISACA LA Best Paper Contest. It was later published in the Issues in Information Systems, and accepted for presentation and publication at the International Association for Computer Information Systems (IACIS) Conference where it was selected by IACIS for the Best Research Paper Award. Aleksandra is a Certified Information Systems Auditor (CISA), Certified Internal Auditor (CIA), and Certified Public Accountant (CPA).

Review :
Information Technology Control and Audit, Fourth Edition is one of a handful of books I think of as a must have reference book on every CIO’s bookshelf or in the IT department library. ... certainly a tremendous reference resource for CIO’s, IT managers of all types and IT auditors who need to be able to crack open a book when dealing with an issue of governance or best practice ideas on setting up IT controls for IT acquisitions. The reasons this book is such a strong reference in those situations is that it aligns to the Control Objectives for Information and Related Technology (COBIT) framework. Which for many people find COBIT to be a better framework than ITIL when designing controls for compliance and doing audit work.... Now I know a lot of CIO’s and senior IT managers might be a bit skeptical that this is a book they should dig into when they have questions or need ideas. But you will find much more credible information in this one book, faster, than you ever will searching for it online. —The Higher Ed CIO Read the full review at: http://blog.thehigheredcio.com/2012/10/09/book-review-information-technology-control-and-audit-fourth-edition/#ixzz2TaAb6hMh Praise for Its Bestselling Predecessor: I've been extremely pleased with the textbook. It is the only IT Audit textbook that is representative of how IT auditors actually scope and perform their work. The layout of the book follows the most logical learning progression for a new IT auditor, starting with the understanding of general IT controls prior to teaching application controls. Many other textbooks I reviewed did not follow this logical progression and I found students not fully understanding how application controls are reliant upon the general controls. Information and Technology Control and Audit lays out the logical control reliance to afford students the ability to understand this concept. This has given my students a head start in their respective IT audit roles … . —Rick Savarese, CISA, Vice President of Information Technology and CSO at ECFMG; MIS/Accounting Professor, University of Delaware Prior to becoming a professor I worked for Ernst & Young as a Senior Manager in the Information Technology Audit area for 8 years. I have found this text to be an invaluable asset in teaching my IT Audit classes for the past 5 years. The chapter contents, illustrations, cases, and appendices bring the real world into my classroom making my students ready for their first Information Technology Audit interview and job! —Professor Edward Moskal, Computer & Information Sciences Department, Saint Peter's College I currently teach a class on IT auditing and I have been using Sandra Senft and Frederick Gallegos' Information Technology Control and Audit textbook in my classroom since the Fall of 2009. In my experience, I have found that students have benefitted greatly from the book; I have been able to incorporate many of the topics from the book in my classroom discussions. The book provides a solid foundation in terms of the evolution of IT auditing, including many current drivers such as the changing regulatory and compliance landscape. The book then delves into the process of performing an IT audit, including the use of clear references to our audit standards. Students are then introduced to many technical IT audit topics such as application development, information security and IT operations and support. Throughout, the authors do a nice job of referencing COBIT and other IT risk and control frameworks. Overall, the book is an excellent resource for individuals interested in learning about the profession of IT auditing and compliance. —Jim Enstrom, Adjunct Professor/Lecturer, DePaul University