ITTIHAD UNIVERSITY

College of Management & Information Systems

B.S . !rogram in B"siness Information Systems
A o"nting Information Systems #$%$&'&%(

Assignment T)o
Information Te *nology Controls

S"+mitte, +yZubaidah Abdul Rehman (20042080)

I declare that this assignment is my own work, in my own words and it does not include any copy paste or plagiarism issues. I also confirm that I did not copy it from others and I have included all the references.

S".er/ise, +yDr. Selma

Information Technolog !ontrol"

Table of !ontent"
Section 1)
1.1) 1.2)

Introduction 3 3

Background Purpose, Aim and Objectives

Section 2)
2.1) 2.2) 2.3) 2.()

I !ontro"s #iscussion and $indings 3 ( (

%e %ree !"asses o& I !ontro"s In&ormation ec%no"og' !ontro" Activities and !ontro" !oncerns Interna" !ontro"s 'pes o& !ontro"s 2.(.1. 2.(.2. 2.(.3. 2.(.(. 2.(.). 2.(.-. Input !ontro"s App"ication !ontro"s &or ransaction Processing Processing !ontro"s #ata*Access !ontro" ota"s +it%in Processing !ontro"s #ata ,anipu"ation !ontro" Output !ontro"

) ) ) ) -

2.))

!ontro"s &or Persona" !omputers

Section 3)

!onc"usion

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Information Technolog !ontrol"

.e&erences
Section #) Introduction #.#) $ac%ground

In&ormation tec%no"og' 0I ) contro" is about a process t%at +i"" be providing assurance &or in&ormation services and re"ated in&ormation. %is +i"" be a"so inc"uding %e"ping to mitigate t%e potentia" risks t%at are associated +it% t%e tec%no"og' use. %e reason t%at I contro"s are ver' important is because it enab"es assessment o& I contro"s suc% as revie+ing t%e current s'stem securit' and revie+ing t%e app"ication contro". At t%e same time, t%e auditors s%ou"d ensure t%at t%e data are re"iab"e in a computer s'stem be&ore actua""' re"'ing on it. Some o& t%e organi1ations are depending on internationa""' deve"oped s'stems so t%ere +i"" be need &or interna" audit or se"&*assessment t%at mig%t %e"p in reducing audit &indings1. #.2) &ur'o"e( Aim and )b*ecti+e"

%e purpose o& project is to identi&' I contro" and to ana"'1e t%eir actions in assisting &or preventing or detecting errors and &rauds. %ere&ore, t%e aims are maintaining and en&orcing code o& et%ics, maintaining a s'stem t%at is according to accounting interna" contro"s, and maintaining a s'stem t%at is about I contro"s 2. %e genera" purposes o& I contro"s are app"'ing in a"" t%e in&ormation s'stems. %e major objectives are to make sure t%at computer programs are approved, aut%ori1ed and tested be&ore usage, and to make sure t%at access to suc% programs or data are +it% "imited accessibi"it' to aut%ori1ed users 3. I contro"s provides assurance suc% as c%anges or deve"opment o& computer programs, restriction in access, accurac' and comp"eteness4. Section 2) IT !ontrol" Di"cu""ion and ,inding" 2.#) The Three !la""e" of IT !ontrol" %e t%ree c"asses o& I contro"s are preventive contro"s, detective contro"s, and corrective contro"s as described be"o+2 1) Preventive contro"s are &or preventing securit', omissions and errors incidents to %appen)3

e4as State Agenc' Interna" Audit $orum. 02556). Interna" !ontro" .e7uirements &or t%e American .ecover' and .einvestment Act 0A..A). .etrieved 2) October 2556 &rom %ttp288+++2.dir.state.t4.us8Site!o""ection#ocuments8SponsoredSites8StateAgenc'!oordinating!ommittee8StateAgenc'Inter na"Audit$orum0SAIA$)8Overvie+*Interna"!ontro"s5/*2/*56.ppt
2

urner, 9. 0166/). Accounting In&ormation S'stems, !%apter 32 $raud, :t%ics, and Interna" !ontro". .etrieved 2) October 2556 &rom %ttp288%ig%eredbcs.+i"e'.com8"egac'8co""ege8turner85(/1(/6)168ppt8c%53.ppt
3

Brad&ord, ,. 0166-). !ore !oncepts o& AIS. .etrieved 2) October 2556 &rom %ttp288+++.uamont.edu8$acu"t'9eb8;ammett8ppt8AIS8c%12.ppt
(

Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt
)

!rumb"e', >. 0166-). $orensic Accounting2 Strategies &or #etecting ? !ontro""ing $raud. .etrieved 2) October 2556 &rom %ttp288+++.bus."su.edu8accounting8&acu"t'8"crumb"e'8,a"a'sia@Spring2556@525(2556.ppt

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Information Technolog !ontrol"

2) #etective contro"s are &or detecting incidents or errors t%at mig%t e"ude imp"emented preventive contro"s63 3) !orrective contro"s are &or correcting incidents, omissions, and errors a&ter detecting it7. 2.2) Information Technolog !ontrol Acti+itie" and !ontrol !oncern"

According to &igure 1, it s%o+s I contro" concerns and t%eir e4p"anation to be taken under consideration2

$igure12 I !ontro" !oncerns and t%eir :4p"anation8 I contro" activities are genera" and app"ication contro"s, backup data, disaster recover', and business continuit' over in&ormation s'stems t%at +i"" be inc"uding end*user, main&rame and net+ork environments9. 2.-) Internal !ontrol"

%e organi1ation s%ou"d %ave I interna" contro"s suc% as t%e re"ations%ip bet+een app"ication contro"s and genera" contro"s as s%o+n in &igure 2 and t%eir categories o& contro" t'pe e4p"ained in &igure 32

!rumb"e', >. 0166-). $orensic Accounting2 Strategies &or #etecting ? !ontro""ing $raud. .etrieved 2) October 2556 &rom %ttp288+++.bus."su.edu8accounting8&acu"t'8"crumb"e'8,a"a'sia@Spring2556@525(2556.ppt
/

!rumb"e', >. 0166-). $orensic Accounting2 Strategies &or #etecting ? !ontro""ing $raud. .etrieved 2) October 2556 &rom %ttp288+++.bus."su.edu8accounting8&acu"t'8"crumb"e'8,a"a'sia@Spring2556@525(2556.ppt
=

Brad&ord, ,. 0166-). !ore !oncepts o& AIS. .etrieved 2) October 2556 &rom %ttp288+++.uamont.edu8$acu"t'9eb8;ammett8ppt8AIS8c%12.ppt
6

e4as State Agenc' Interna" Audit $orum. 02556). Interna" !ontro" .e7uirements &or t%e American .ecover' and .einvestment Act 0A..A). .etrieved 2) October 2556 &rom %ttp288+++2.dir.state.t4.us8Site!o""ection#ocuments8SponsoredSites8StateAgenc'!oordinating!ommittee8StateAgenc'Inter na"Audit$orum0SAIA$)8Overvie+*Interna"!ontro"s5/*2/*56.ppt

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Information Technolog !ontrol"

$igure 22 I Interna" !ontro"s10

$igure 32 !ontro" 'pe !ategories11 2.4) T 'e" of !ontrol"

2.4.#. In'ut !ontrol" %e input contro"s are attempting to ensure t%at t%ere is comp"eteness, accurac' and va"idit' o& t%e data as entered into an AIS. %e categories inc"ude additiona" input contro"s, edit tests, and transcription, observation and recording o& data12. 2.4.2. A''lication !ontrol" for Tran"action &roce""ing %e reason &or designing app"ication contro"s are &or correcting errors, correcting irregu"arities, a"ong +it% detecting and preventing t%em. %is +i"" be taking p"ace in transactions suc% as data processing stages o& input, processing and output13.
15

Beas"e', :"der, ? Arens. 02512). %e Impact o& In&ormation ec%no"og' on t%e Audit Process. .etrieved 2) October 2556 &rom %ttp288+++.c+u.edu8<rub"em8acct@(-5Po+erpoint@&i"es8PPA25(-5A25!%12.ppt
11

Beas"e', :"der, ? Arens. 02512). %e Impact o& In&ormation ec%no"og' on t%e Audit Process. .etrieved 2) October 2556 &rom %ttp288+++.c+u.edu8<rub"em8acct@(-5Po+erpoint@&i"es8PPA25(-5A25!%12.ppt
12

Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt
13

Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt

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Information Technolog !ontrol"

2.4.-. &roce""ing !ontrol" %e &ocus o& processing contro"s is on t%e accounting data manipu"ation a&ter t%e input event to t%e computer s'stem. %ere are t+o kinds o& processing contro"s2 data manipu"ation contro"s and data access contro"s14. 2.4.4. Data.Acce"" !ontrol Total" /ithin &roce""ing !ontrol" #ata access contro"s inc"ude contro" procedures suc% as record count, %as% tota", &inancia" and non&inancia" contro" tota", and batc% contro" tota"15. 2.4.0. Data 1ani'ulation !ontrol In order to produce use&u" output, t%e data t%at +as va"idated s%ou"d be manipu"ated in some +a'. %e data manipu"ation contro"s inc"ude test data, compi"er, &"o+ c%arts and diagrams, and so&t+are documentation16. 2.4.2. )ut'ut !ontrol %e output contro" ensures172 !omp"eteness, Accurac', and Ba"idit'. 2.0) !ontrol" for &er"onal !om'uter"

%e contro"s &or persona" computers invo"ves ana"'1ing p%'sica" securit', computers c"assi&ication according to e4posures and risks, uti"i1ing app"ications, taking an inventor' o& persona" computers18. Section -) !onclu"ion

In conc"usion, I contro"s %ave severa" areas as discussed ear"ier. %ere&ore, t%e organi1ation s%ou"d determine t%e speci&ic areas t%e' need to imp"ement I contro"s. According"', t%e' s%ou"d set procedures and po"icies supporting t%ose I contro" measures. 9e %ave a"so discussed I contro"s in genera" and app"ication.

1(

Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt
1)

Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt
1-

Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt
1/

Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt
1=

Brad&ord, ,. 0166-). !ore !oncepts o& AIS. .etrieved 2) October 2556 &rom %ttp288+++.uamont.edu8$acu"t'9eb8;ammett8ppt8AIS8c%12.ppt

Zubaidah Abdul Rehman, 200 20!0

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Information Technolog !ontrol"

Reference" 1) e4as State Agenc' Interna" Audit $orum. 02556). Interna" !ontro" .e7uirements &or t%e American .ecover' and .einvestment Act 0A..A). .etrieved 2) October 2556 &rom %ttp288+++2.dir.state.t4.us8Site!o""ection#ocuments8SponsoredSites8StateAgenc'!oordi nating!ommittee8StateAgenc'Interna"Audit$orum0SAIA$)8Overvie+* Interna"!ontro"s5/*2/*56.ppt 2) urner, 9. 0166/). Accounting In&ormation S'stems, !%apter 32 $raud, :t%ics, and Interna" !ontro". .etrieved 2) October 2556 &rom %ttp288%ig%eredbcs.+i"e'.com8"egac'8co""ege8turner85(/1(/6)168ppt8c%53.ppt 3) Brad&ord, ,. 0166-). !ore !oncepts o& AIS. .etrieved 2) October 2556 &rom %ttp288+++.uamont.edu8$acu"t'9eb8;ammett8ppt8AIS8c%12.ppt () Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt )) !rumb"e', >. 0166-). $orensic Accounting2 Strategies &or #etecting ? !ontro""ing $raud. .etrieved pt -) !rumb"e', >. 0166-). $orensic Accounting2 Strategies &or #etecting ? !ontro""ing $raud. .etrieved pt /) !rumb"e', >. 0166-). $orensic Accounting2 Strategies &or #etecting ? !ontro""ing $raud. .etrieved pt =) Brad&ord, ,. 0166-). !ore !oncepts o& AIS. .etrieved 2) October 2556 &rom %ttp288+++.uamont.edu8$acu"t'9eb8;ammett8ppt8AIS8c%12.ppt 6) e4as State Agenc' Interna" Audit $orum. 02556). Interna" !ontro" .e7uirements &or t%e American .ecover' and .einvestment Act 0A..A). .etrieved 2) October 2556 &rom %ttp288+++2.dir.state.t4.us8Site!o""ection#ocuments8SponsoredSites8StateAgenc'!oordi nating!ommittee8StateAgenc'Interna"Audit$orum0SAIA$)8Overvie+* Interna"!ontro"s5/*2/*56.ppt 2) October 2556 &rom %ttp288+++.bus."su.edu8accounting8&acu"t'8"crumb"e'8,a"a'sia@Spring2556@525(2556.p 2) October 2556 &rom %ttp288+++.bus."su.edu8accounting8&acu"t'8"crumb"e'8,a"a'sia@Spring2556@525(2556.p 2) October 2556 &rom %ttp288+++.bus."su.edu8accounting8&acu"t'8"crumb"e'8,a"a'sia@Spring2556@525(2556.p

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Information Technolog !ontrol"

15) Beas"e', :"der, ? Arens. 02512). %e Impact o& In&ormation Process. .etrieved 2) October ec%no"og' on t%e Audit 2556 &rom

%ttp288+++.c+u.edu8<rub"em8acct@(-5Po+erpoint@&i"es8PPA25(-5A25!%12.ppt 11) Beas"e', :"der, ? Arens. 02512). %e Impact o& In&ormation Process. .etrieved 2) October ec%no"og' on t%e Audit 2556 &rom

%ttp288+++.c+u.edu8<rub"em8acct@(-5Po+erpoint@&i"es8PPA25(-5A25!%12.ppt 12) Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt 13) Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt 1() Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt 1)) Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt 1-) Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt 1/) Brad&ord, ,. 0166-). !%apter 62 !omputer !ontro"s &or Accounting In&ormation S'stems. .etrieved 2) October 2556 &rom %ttp288+++.cba.ua.edu8<jomason8ac3=683=6*!%56.ppt 1=) Brad&ord, ,. 0166-). !ore !oncepts o& AIS. .etrieved 2) October 2556 &rom %ttp288+++.uamont.edu8$acu"t'9eb8;ammett8ppt8AIS8c%12.ppt

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