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Module 2: Audit Planning and Business Process Flashcards

1
Q

A ________ is an interrelated set of __ ____ activities or events that result in the delivery of a specific product or service to a customer.

A

Business Process; Cross Functionals

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2
Q

What are the responsibilities of business process owner?

A
  1. Identify Requirements
  2. Approval of Process Design
  3. Should be of high level in the organization in order to be able to assign resources.
  4. Managing Process Performance
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3
Q

The role of the IS internal audit function should be established in?

A

The audit charter

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4
Q

Who approves of the audit charter?

A

BOD and Audit Committee or Senior Management

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5
Q

What is the difference between the audit charter and the engagement letter?

A

Audit Charter - whole scope of audit activities
Engagement Letter - specific audit exercise

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6
Q

___ ___ ___ ___should be drawn up for the year based on the organization’s direction in terms of technology and related risk that needs to be addressed

A

a detailed staff training plan

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7
Q

The Audit Charter should include these 4?

A
  1. Purpose
  2. Authority
  3. Responsibility
  4. Accountability
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8
Q

What can the board approve?

A
  1. Charter
  2. Risk Based Plan
  3. IS Budget and Resource Plan
  4. Appointment and Removal of Chief Audit Executive
  5. Wage of Chief Audit Executive
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9
Q

Can IS auditors subordinate their judgement on audit matters to other?

A

No.

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10
Q

the engagement can be completed in accordance with applicable IT audit and assurance standards and, where required, other industry standards or applicable laws and regulations that will result in a
professional opinion or conclusion

A

Reasonable Expectation

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11
Q

maintain high standards of conduct and character, and they will refrain from engaging in acts that may discredit themselves or the profession

A

Due Professional Care

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12
Q

a collective term that refers
to the knowledge, skills, and
other competencies required
of internal auditors to effectively carry out their professional responsibilities

A

Proficiency

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13
Q

What should professionals do to maintain compentence in their line of work

A

through continuing professional education and training

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14
Q

Considers audit Issues that will be covered during the year

A

Short Term Audit Planning

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15
Q

Considers risk related issues that will incur change in the IT Environment

A

Long Term audit planning

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16
Q

List of all processes that may be considered for Audit

A

Audit Universe

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17
Q

Risks can be rated as?

A

High
Medium
Low

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18
Q

The evaluation of risk should be ideally based on the inputs of?

A

The business process owners

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19
Q

Analysis of short-term and long-term issues should occur

A

At least annually

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20
Q

The review of the analysis results should be done by

A

Audit Senior Managment/ Audit Committe or BOD

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21
Q

Steps of Perform Audit Planning

A
  1. Understand organization
  2. Understand Audit Objectives and Org Governance Structure
  3. Understanding changes in the business environment of the auditee
  4. Review prior work papers
  5. Identify Contents
  6. Risk Analysis
  7. Set Audit Scope and Objectives
  8. Develop Audit Approach
  9. Assign personnel
  10. Adress Engagement Logistics
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22
Q

What are the two considerations regarding laws and regulations on IS audit planning?

A
  1. Legal Requirements placed on Audit or IS Audit
  2. Legal Requirements placed on the auditee (PICAA, GDPR)
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23
Q
A
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24
Q

What are the differences between single, two, and three tier architecture of e-commerce?

A

Single Tier - Client Based application running on a single computer
Two Tier- Has a client and a server
Three Tier - Has a presentation layer (GUI), application layer (Functionality), and data layer (Database)

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25
play a key role in most ecommerce systems, maintaining data for website pages accumulating customer information and storing clickstream data for analyzing website usage
Databases
26
Persistent customer data should not be stored in?
Web Servers or servers connected to the internet
27
E-Commerce Risk: Potential consumers are concerned about providing unknown vendors with personal information for a number of reasons.
Confidentiality
28
E-Commerce Risk: Data in transit and in storage could be susceptible to unauthorized alteration or deletaion
Integrity
29
E-Commerce Risk: allows customers to have data 24/7 hence losses can be acquired when it is down
Availability
30
E-Commerce Risk: requires that the parties prove their identities before executing the transaction
Authentication
31
E-Commerce Risk: a manner of ensuring that the transacting parties cannot deny that the transaction was completed
Non-repudiation
32
E-Commerce Risk: Organizations participating in e business need to make their offerings attractive and seamless in terms of service delivery
Power Shift to Customers
33
What concept should a business case be built upon?
The 4 C's: Customers, Competitors, Capability, Costs
34
E-Commerce Requirements: cannot succeed without a clear vision and strong commitment from the top of an oganization
Top-level Commitment
35
E-Commerce Requirements: how technology can fundamentally reconfigure some of its basic business processes
Business Process Reconfiguration
36
E-Commerce Requirements: accelerate response times, provide real interaction to customers and customize responses to individual customers
Links to Legacy System (Linking an e-commerce system to legacy system enables it to have more capabilities and improve response times)
37
According to E-Commerce Requirements, what is the key needed to make e commerce work if its not techology
Ingenuity
38
Electronic transmission of transactions between two oganizations
Electronic Data Interchange
39
Moves data from one point to another and determines how acknowledgements are transmitted and reconciled
Communications Software
40
What flags the start and end of an EDI Transmission?
Communications Software
41
Helps build a map and shows how the data fields from the application correspond to the standard EDI format
Translation Software
42
necessary in mapping the transaction, writing the partner’s profile and tells the system where to send each transaction and how to handle errors and exceptions
EDI Standard
43
includes transmission, translation and storage of transactions initiated by or destined for application processing
EDI System Software
44
What are the functions of a traditional EDI?
1. Communications Handler 2. EDI Interface 3. Application System
45
Receives all the outbound transactions from an organization, sorts the, by destination and passes them to the receipients
Value Added Network
46
Functions of EDI: includes transmission, translation and storage of transactions initiated by or destined for application processing
Communications Holder
47
Functions of EDI: manipulates and routes data between the application system and the communications handler
EDI Interface
48
moves electronic transactions to or from the application systems and performs data mapping. It Imay generate and send functional acknowledgments, verify the identity of partners and check the validity of transactions by checking transmission information against a trading partner master file
Application Interface
49
Functions of EDI: processes the data sent to and from the trading partner
Application System
50
Test of ______ of messages received should be based on trading partners' ____ ____ or ______ received that substantiates special situations
Reasonableness; transaction history; documents
51
What should be in place between parties to reduce the risk of tapping into the transmission lines?
Direct or dedicated transmission channels
52
What should be in the transmissions to identify the source and destination?
Electronic Signatures
53
What should exist to ensure that what is sent is received?
Message Authentication Codes
54
What is the control objective of inbound transactions?
All Inbound EDI transactions should be completely and accurately received, translated, passed on to the application, and processed only once.
55
What is the control objective of outbound EDI transactions?
-Only properly authorized transactions are processed - Outbound EDI messages are initiated upon authorization - Contain only pre-approved transaction types -Sent only to valid trading partners
56
The validity of the sender against trading partners detail by:
1. Use of Control Fields within an EDI message at either the transaction, function, group or interchange level 2. The use of VAN sequential control numbers or reports 3. The sending of an acknowledgement to the sender .
57
______ count total built into the transaction set trailers _______ set count total built into the functional group headers _______ batch control totals built into the functional group headers
Segment; Transaction; Batch
58
enable the capture of data at the time and place that sales transactions occur
Point of Sale Systems
59
What should the IS auditor ensure when there are Personally Identifiable Information are stored within Point of Sale systems?
That they are encrypted
60
What are the Risk Management Controls for E-Banking?
1. Board and Management Oversight 2. Security Controls 3. Legal and Reputational Risk Managment
61
Replaces traditional check writing and cash collection procedures?
Electronic Fund transfer
62
specialized form of the POS terminal that is designed for the unattended use by a customer of a financial institution
Automated Teller Machine
63
Recommended Internal Control Guidelines for ATM: Regarding PINS
- Procedures for PIN issuance and protection during storage - Procedure for PIN security during delivery and locking after unsuccessful number of attempts
64
Recommended Internal Control Guidelines for ATM: What is subject to the highest level of access?
Anything related to the generation of PINs
65
Recommended Internal Control Guidelines for ATM: Audit trails for transactions that have been made in the ATM must be made in what form?
Internal Registration in Internal paper or digital media
66
Technology that allows computer to detect voice and touch tones using a normal phone call
Interactive Voice Response
67
Purchase Accounting System Components
1. Accounts Payable Processing 2. Goods Received Processing 3. Order Processing
68
method of manipulating or altering an image to achieve a desired result, typically for improving its visual quality or extracting useful information from it.
Image Processing
69
Image Processing: The integrity and reliability of the imaging system database are related directly to the ?
Quality of Controls over access to the system
70
Image Processing: What problems can arise from scanning devices?
It may not be able to handle a large number of transactions.
71
What are the ICS risk factors?
1. Delayed Flow of Information 2. Unauthorized changes to instructions 3. Inaccurate Information 4. Malware or Modification 5. Interference with the operation of safety systems
72
Basic assumptions or formulas are given and then used to analyze repetitive situation. Conclusions are made using the analysis.
Expert Systems
73
contains specific information or fact patterns associated with particular subject matter and the rules for interpreting these facts
Knowledge Base
74
is linking the business processes between the related entities such as the buyer and the seller
Supply Chain Management
75
is the combination of practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle
Customer Relationship Management
76
Concerned with maximizing the utility of the customer's service experience while also capturing useful data about the customer interaction
Operational CRM
77
seeks to analyze information captured by the organization about its customers and their interactions with the organization into information that allows greater value to be obtained from the customer base
Analytical CRM
78
What are the components of Analytical CRM
1. OLAP 2. Data Mining 3. Data Warehousing
79
Using the Work of Other experts: Factors to be considered
1. Restriction on Outsourcing of audit/Security Services provided by laws and regulations 2. Audit Charter or Contractual Stipulations 3. Impact on overall and specific IS audit objectives 4. Impact on IS audit risk and professional liability

ITABP (10 decks)

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