Information System Audit and Risk Management Audit
Technology enables rapid global business growth and advancement. It is also a major source of
business risk. Recognizing the importance of technology by the boards and executives is an
easy deal but managing it effectively is equally difficult. Often, business executives and
IT professionals don't speak the similar language. What affects the outcome is the
miscommunication and gap between the business executives and IT professionals and
eliminating these loopholes requires an effective strategy.
Everyone is aware of the requirement for information security in today's highly networked
business environment. Information is undeniably regarded as most valuable asset for an IT
company and protecting it from outside and within have become the main issue of
consideration in company conferences. Information System Audit covers automated information
processing system evaluation, non- automated processes and in between interface.
IT audits is an examination of management controls within IT infrastructure. It not only
examines physical security controls but also the business and financial controls that
involve information technology systems. For an organization to operate effectively, for
safeguarding the assets and maintaining the integrity the evidence evaluation is important.
It is also important for the company to achieve the respective goals and objectives. IT
audits are also known as computer audits and Automated Data Processing (ADP). The
Information Technology Audit examines the controls within Information Technology structure.
What Rajput Jain & Associates Offers
We are aimed at optimizing the resources of the organization to deliver maximum value. For
the clients switching to automated process from manual legacy systems we offer post
migration Audit certification. This process is also conducted in the case of due-diligence
Information System (IS) Governance:- Effective governance of the Informative system
ensures that business delivers value and that the possible risks are managed using
technology. Information Technology (IT) performance is continuously being questioned in the
light of changing business and regulatory requirements, such as Sarbanes-Oxley,
International Financial Reporting Standards (IFRS), and Basel II, & also the need for
transparency to shareholders. The Information System governance structure should be designed
to meet all these aims and to fit within the corporate governance framework. This system of
governance is considered important by the boards and the management. The informative system
addresses various concerns of an organization:
- Inappropriate strategy for Information System Aligning informative strategy with
business strategy is quite complicated and critical. The lack of proper alignment can
lead to mismanagement, inappropriate investments and ineffective implementation of new
- Laboriousness in Quantifying the Value of Informative System This task is
necessary during disposals and acquisitions. The value derived from the impact of IT
should always be known. The absence of the particular information could lead to improper
- Reviewing Existing Informative System Security Controls: This is done walking by
the best parameters of the industrial standards. For instance, Gap analysis with
ISO27001, NIST standards and other industrial benchmarks like CIS, CERT. Making
recommendations to improve and strengthen Information System controls
- Systems and Applications: An audit to certify that systems and applications are
appropriate to the entity's requirements, are efficient, and are adequately controlled
to ensure valid, reliable, well timed, and secured input, processing and output.
- Business Application Audits: Checking upon the limitations, features and
application capabilities for establishing the lawfulness in the applicant’s logical
access controls. Reviewing the operational adequacy of the application package, Auditing
SLDC process and testing the performance through different tools.
- Information Processing Facilities : This audit process is conducted for ensuring
the timely, accurately and effective processing of the applications under any condition
whether normal or disruptive.
- Systems Development: It is an audit to verify that the systems under development
meet the goals of the organization and to assure that the systems are developed
according to generally accepted standards for systems development.
- IT and Enterprise Management Architecture: This is an audit which is conducted to
verify if the IT management has developed an organizational structure and procedures for
assuring a controlled and efficient environment for information processing.
- Uncertainly as the Major Cost of Information System: Before investments or
modifications are made, an organization should know the current cost in Information
System. Without a comprehensive management overview, this can be difficult to ascertain.
- Performance Management System: Measuring and improving Information System is a
constant challenge. Performance check is conducted for proper management of investment
in IT, controlling the technology risks which makes the foundation for improvement.
- Regulation and Compliance Frameworks: Compliance frameworks can be costly and
complicated to implement. However, without them, organizations may increase their risk
of fines and the risk of their Information System assets being badly managed.
Information Technology’s Contribution in Value and Performance:- What is the business
value of IT to an organization? How is IT performing? These are the questions that many
executives are asking about their investment in information technology. Often, what is
missing is an effective dialog between the corporate level and the IT function. When this is
supported by an investment appraisal and performance monitoring, the organization can have a
clear understanding of the benefits IT brings to the business. In addition, business events
such as transactions and restructuring will change the overall IT need. In such situation
the client needs to re-evaluate the sourcing and management decisions.
Risk Issues:- As soon as the nature of risks changes so does the priorities. Your
business may face risk of exposure if it lacks strong sustainable approach to risk
management. The risk issues regarding which our clients seek productive advice for are risk
research into the views of key stakeholders; unrivalled insight into sector that our
experienced team offers and the case studies regarding risks that demonstrates how we help
the clients in tackling both the opportunities and risk threats.
Technology Risk: - Concerns regarding technological risks:
- Security, Privacy and Continuity:- In today's business environment, the
reputation of a business, indeed its existence, can have positive impact by adopting
measures like the strength of the security, privacy and business continuity mechanisms
it has in place. Fundamental controls, such as the segregation of duties, are often
completely reliant on the strength of technology-based access controls. In a world of
global communications networks, security vulnerabilities can be quickly exploited.
Well-publicized frauds and scams erode public confidence.
- IT Internal Audit Services:- Risk Management through internal audit has been
considered as one of the effective techniques which is ruling the management issues from
some time now and is considered as effective initiative for constructive corporate
governance framework. By undergoing developments, this initiative is further enforced.
The quality and effectiveness of Internal Audit functions are diverse, as are their
mandate. For achieving highest productivity through Internal Audit, specialists with the
capability of pointing out and accessing the business risks. Where IT is concerned,
technical subject matter specialists are often required.
- IT Attestation Services:- In an environment where customers and clients are
increasingly affected by a business' IT systems, extra assurance is often required to
satisfy stakeholder expectations. SAS 70 and similar standards examinations clarifies
that our clients have conducted in-depth analysis of control activities. This involves
controls over transaction processing as well as IT and related processes. Reviews offer
clients with a third-party attestation against the organization's internal control
objectives. A formal report including the auditor's opinion is issued to the client at
the conclusion of the examination.
- IRM in The External Audit:- It accounts to the one of the most important part of
the external audit. It is undertaken for evaluating the financial audit risk. Which
includes identification of operational and financial risks which concluded the finest
part of business systems and processes and advise on risk mitigation.
integrates technology issues into the audit framework and work as a part of audit’s team
in accessing the technological component in business issues, risks and strategies.
- Migration Audits:- Reviewing the migration process from legacy systems to state
of the art systems like Oracle Applications, SAP. It also reviews the migration process
from a non-CBS to a CBS environment and the data center migration process.
Network Audits (Including Vulnerability and Penetration Testing):
- Client/Server, Telecommunications, Intranets, and Extranets: an audit to scrutinize that
controls are in place on the client (computer receiving services) server, and on the
network connecting the clients and servers.
- Auditing management and security of networks
- Monitoring the extent to which the network security aligns with internal standards
- Assessment of Vulnerability and penetration testing of networks
- A clear insight into configuration of various network devices like routers, and
improving them for the secured configuration standards.
- Reviewing the consistency, reliability of the network management system and quality
- Recommend Improvement opportunities.
Data Center Audits : Operating System Review; Network Controls Review, Data Center
Operations Review, Environmental Security- Access Controls, General Computer Controls Review
covering- IT Assets and resources- Personnel Security- Physical, Database Controls Review.
Web Application Security Testing: Review of web application source code against secure
coding standards, testing web application for security vulnerabilities, strengthening
website security and Review of underlying operating systems and applications.