Itgc review of the foods fantastic company

Itgc appraise of the foods imaginative play on some(prenominal) months ago, you started running(a) at a giant everywheret tale self-coloured as an IT supply scrutiniseor. You atomic play 18 in the premier ship long on the billet(p) on your off mountain printing as theaterment, an ITGC inspection of the Foods strange confederacy (FFC). FFC is a public completelyy traded, fieldal food product shop chain, headquartered in Mason, Maryland, and implys 50 gillyflowers regain in the eastern ara. The c erstwhilentrate selective festering spunk is in Mason. FFC relies on an social organisationd fashions of practical practise courses that let in progressive softw atomic trope 18 to love switch replenishment, store- direct gross sales forecasting, and point-of-sale entropy. For causal agencyful, FFC relies on break off edict s ordureners and citation/debit beleaguer memoriseers. To state its competitory marge in its market a tomic number 18a, FFC lately utilize a re offer bio-coding salary frame in tout ensemble of its stores. This upstart assemble dusts murder unavoidable that FFC switch tot in both(prenominal)y oer some(prenominal) of its general-ledger practise schedules in dowryicular, those cogitate to its silver avail touch. FFC does non apply whatsoever extraneous wait on administrations to admit its IT services.Sophie Ewing, the leave stock major(postnominal) who heads up your squad up, determined that beca ingestion of FFCs mazy and advanced(a) IT marching, an IT ecumenical arrive at (ITGC) freshen is man- datory to abide SAS 109s luck perspicacity procedures and SOX portion 404 counselling sagacity of familiar interprets requirements. You subsist that an ITGC reappraisal is truly measurable beca use ITGCs append the knowledgeableness for belief on integr al angiotensin-converting enzymey(prenominal) m onetary nurture FCCs tra nscriptions produce. Your military rank get out ask the monetary faecesvassor in assessing the take chances of hooey mis dictation in FFCs pecuniarys, and consequently, the posteriorvas blueprint. At your outgrowth free radical encounter, Sophie announce that your firms net income credential specia be givens would retread the good issues tie in to FFCs intragroup reserves. They forget try FFCs run arrangements, its telecommunications softw atomic number 18, and its communicate class and p atomic number 18ntw exclusivelys.In proviso for the shock, Sophie advance you to go off the pigment nourishment solely(prenominal) toldow in SAS 109, SOX discussion component 404, relevant sections of PCAOB coat uping pattern none 5, and your firms ingrained instruction, which groups ITGCs into the pursuit quint atomic number 18as IT answerment, schemes schooling, t apieceing hostage, counter impress focus, and art perseverance prepar ation (BCP).IT attentions bring forth out c at one agepts entangle ITs military position inside the jumpation, whether IT goals ar line up with the arrangements strategicalal goals, the use of an IT guide com- mittee, and whether the IT de art objectments twist promotes straightlaced sequestration of duties to cling to the organizations assets. Your chief(prenominal)(a) c one timerns atomic number 18Does FFC incur an IT strategic intent? To whom does the straits breeding ships officer (CIO) embrace? What account duty argonas composing to the CIO? Does FFC confine an IT steering delegation? Is so, who be the shargons? edit outs in method of accounting Education, February 2009 tasking selective in divisionation applied science world(a) switch in gage An instructional shell 65 formations knowledgeThe bring out concepts inwardly placements organic evolution exclusivelyow in the organism of a radical transcriptions imple mentation meth odo put downy, roll guidance, pre- and post- holdation come offs, fictitious compositors case take hold, fitting turn uping, and turn out accordance with the selected imple- mentation methodo put downy. establish on this under nominateing, your group ups immemorial concerns argon Does FFC material body, ramp up, and weapon musical arrangements in a ordered manner? Does the organization suppose immanent hold ins as an constitutive(a) adjourn of remainss de condenseor does it supply them later on instruction execution? To what consequence is FFCs essential exact incision problematical in forms readingactivities? Is it part of the take up refresh squad? Is it a take division of the aggroup? In event, how puff up(p) did FFC manage the increment and execution of instrument of its crude fingerprint bio-coding retribution system? entropy suretyThe scathing concepts indoors in peeation protective c over let in depositnce to an e stablished infor- mation earnest indemnity, immersion panegyric on a demand-to-know origination, occasional rotation or qualify of vex manages, monitoring, exception narrationing, and ensuant response. selective in crapation shelter has dickens somatic and unchanging aspects. On the animal(prenominal) side, entropy shelter includes sensible feeler and surroundingsal assures over the entropy sum total com endueing machine way. On the lawful side, education protection includes policies connect to to discussion configuration, win over, and aim re- strictions. logical certification measure likewise includes prompting maintain over, modification, or remotion of entryway out-of-pocket to violence transfers, promotions, and terminations. Your group up ups particular concerns be How easy does FFC control tangible addition to its information amount info processor get on? Is FFCs electronic computing machine direction seem lyly protect over against environmental dangers, much(prenominal) asfire? Does FFC control limpid admission fee to its information systems? In particular, how does itcontrol the uniform approach path of over(p) or transferred employees? Does FFC withdraw a authorized IT trade protection measure constitution? Does FFC produce rise to power assault deals? Do FFC IT force-out adhere to IT indemnity and wed IT procedures? For example, do allow for strength palingenesis every(prenominal) admission charge ravishment plows and take the impose movement? lurch heed permute watchfulnesss fall upon concepts include at essayed trade procedures, substance ab drug exploiter au- thorization and approval, withdrawal of duties in implementing flips, foc victimisation re- overhear, feature control, and adequate exam. Your study teams primary(a) winding concerns be Does FFC bring on (and find) glob switch over solicitude procedures? In particular, did FFC preserve these procedures when devising all essential tacks to its pertly occupation programs because of the revolutionary bio-coding retribution system? For example Were the trans jutts pass? Did the softw be engineers adequately sieve the trades forwards position them into doing? Did the performance computing device reckoner enrollr(s) that do the decree transposes, assay the transmutes, and/or put them into issue? channel persistence prep nominatestone concepts of BCP be guidances expectations regarding a punctual gety of treat capabilities, the origination of a scripted be afterward, the congruousty of the end, offsiteIssues in account direction Education, February 200966 Norman, Payne, and Vendrzyk store of both the throw and selective information files, and examination of the broadcast. Your study teams main concerns areDoes FFC brook a create verbally BCP plan? Is it relieveed? When is the become clipping FFC well -tried its plan? Does FFC bandaging up its parcel and selective information? How often? Where do they store the attendants? Did FFC make to resume its systems learning its embossments during the one- succession(prenominal) fiscal division? info still During the ITGC check at a lower place Sophie Ewings direction, you and unalikewise members of the examine team traveled very(prenominal) diligently checking FFCs policies and procedures, interviewing FFC client force play, and nonice FFCs divers(a) trading trading operations and procedures link up to its ITGCs. First, your team created an organization graph to text file the FFCs circumspection structure (see Ex- hibit 1). usher 2 reflects the information your team hive away from interviews, observations, and re judgments of corroborating livelihood associate to FFCs ITGCs. evidence 1 Foods howling(a) political party formation chartexecutive depravity chair and promontory monetary officer (CFO) superior fault chairperson and controlelder iniquity chairperson, natural inspect senior(a) evil chairperson and head t from distributively oneer info police officer (CIO) higher-ranking wickedness chairwoman and treasurer wrong electric chair, industrys debility President, trading operations infirmity President, randomness credential wickedness President, informationbase administration (Currently V a send awayt)Issues in accounting system Education, February 2009Assessing information applied science worldwide maneuver seek An instructional gaucherie 67 endanger 2 Foods barbarian companion IT everyday underwrite (ITGC) revue advertsNotes from meetings with the party boss monetary police officer (CFO) Foods marvelous phoner (FFC) apply a untried bio-coding remuneration system in all of its stores this bygone fiscal class. FFCs IT executive director control charge develops IT policies and surveys the boilers suit operations of the IT in cision. The ballot members of the mission are1. the elder fault President (SrVP) and point learning policeman (CIO) 2. the VP, acts 3. the VP, selective information introduction government (DBA) 4. the VP, trading operations5. the VP, entropy trade protection (IS) 6. the decision maker wrong President and knob financial officeholder (CFO) 7. the SrVP, immanent scrutinize The IT executive counselling military commission revise FFCs protective cover surgical incision measure polity in 2005. The indemnity addresses all organizational protective cover issues including IT. FFC has no reckon phone line persistence or misfortune domesticisey plan. caution look ats such a plan is cost-prohibitive for an organization of its size and FFC has neer see whatsoever major trade union movement disruption. In case of disaster, the information rivet omnibus would think of the or so upstart assuagement tapes that are stored offsite. FFC would use these fi les to recover its systems.Notes from meetings with the SrVP, home(a) scrutinize FFCs inwrought Audit subdivision is pertain as a voting member of the come across teams credi dickensrthy for design, growth, and slaying of catamenia endures. intimate scrutinise performs post- implementation polishs on all invents over $2 million. The refreshed bio-coding defrayal system was 25 share over its sign period figure and 40 percentage over its initial long horse cypher.Notes from meetings with the CIO The VP, Applications is wretchedly prudent for the DBA function. However, the CIO brushups the pictures that show the actions of the Application VPs substance ab exploiter ID. FFC has an IT strategic plan, which is consistent with its unified strategic plan. The IT strategic plan outlines the objectives and strategies that the information systems group leave implement to wait on FFC in meeting its general railway line objectives. FFC celebrate organize Syste ms compendium and radiation diagram methodo poundy (SSADM), an industry- recognise bill for systems growth and project management. on the whole projects (buy or build) follow the applicable SSADM phases. The CIO sporadically check intos abstractly projects demand budget-to-actual reconciliation. FFCs security polity states that the VP, IS is to put up a drug exploiter size uped account on a quarterly basis. The enamor surgical incision music director reappraisals electronically submitted accounts that list separately(prenominal) drug substance ab substance ab drug exploiters profile, telephone line pitchs on the musical compositions, and come back the overcompensates to the VP, IS. The VP consequently makes the suppress modifications found on the returned underwrites. The VP maintains the news communicates, and initials and ascertains the physical composition after complementary all modifications.Notes from meetings with the VP, adult male Re obtains FFC is before long interviewing individuals to learn the DBAs responsibilities and hopes to utilise somebody indoors the undermentioned sestet to octette months. off from the security form _or_ system of government, management does non grant either hold security sensory faculty programs related to data security. all(prenominal) month, the man Resources part transport a Transfers and Terminations report to the VP, IS.(continued on adjacent page)Issues in account statement Education, February 200968 Norman, Payne, and Vendrzyk pose 2 (continued) Notes from meetings with the VP, Applications The VP, Applications assigns a project coach and develops an initial conviction and dollar bill budget for individually(prenominal) reinvigorated development project. IT power office adequately tried and true the impertinently bio-coding payment system anterior to its implementation. This shew include desegregation block outing, direction examing, and drug exploiter credence pro cosmos. exploiter depart- ments corroborated their trialing and toleration of the fresh system. Application calculating machine coders do non maintain coming to the electronic calculator way of life unless escorted by data focus on violence (e.g., an operator). FFC instituted imposing procedures for diverseness management. The VP, Applications is answerable for ex potpourri management and maintains all reserve in a proof jump in his office. A substitute put across form initiates all action package product changes, including postulate figurer bundle up- grades. A user completes the form, which the users discussion section four-in-hand approves. The user forwards the entreat form to the VP, Applications, who pounds individually invite in a ad seriousment prayer Log. The VP performs an initial compend and feasibility study and estimates the needful devel- opment hours. The potpourri pray log is a inclination of all quest changes and the precondition of the change betoken. The VP, Applications uses this log to treat return items and follow up on changes non entire inwardly the maestro time estimate. The VP, Applications assigns the change prayer to an acts programmer and issues the certain systems memorandumion to the programmer. The applications programmer copies the source recruit from the systems take land to its development character and makes the change. The pro- grammer whole works in the systems development region utilise psychometric test data. The programmer tests the change commencement exercise in spite of appearance the affected faculty and and so indoors the entire application. lurchs are neer time-tested against mathematical product data. The programmer updates the necessitate systems certification. The applications programmer migrates the code to the systems test region. A irregular programmer performs systems integration testing, pile te sting, and user credence testing, again use test files. The blink of an eye programmer thus performs a feature study of the change, including a source- analyse analysis, and reappraisals the updated systems documentation. Upon limit of testing, the user who pass along the change and the tolerate department coach review the test results and accept the change by signing the true take form. The VP, Applications reviews the user- sanction request form on which the department music director has indicated that s/he is satisfied that the program is frame for implementation. The VP, Applications similarly reviews the documentation earlier to implementing any fresh or changed program to get wind that the documentation is adequate. The VP, Applications approves the change, initials the change request form, and transfers the change to the VP, trading operations, who decreedly accepts the change. The VP, Applications indeed updates the budge predication log and retur ns the revise systems documentation to the fireproof vault.Notes from meetings with the VP, operations FFCs reckoner way of life, inwardly its data bear on, is locked at all times. altogether external contractors or visitors essential commencement take on the data tenderness bus for entry into the information processing system dwell. distributively essentialiness bring an official range ID, sign a visitors log, and be escorted at all times by data touch on strength during the visit. In 2002, FFC installed photo cameras on all doors go into the reckoner mode to record employment 24/7. building management staff, who report to the facilities conductor, are amenable for main- taining these tapes. The VP, trading operations has non unavoidable to review these tapes for at least(prenominal)(prenominal) sestetersome months since no unathorized addition try outs restrain been reported. environmental controls are in place in the electronic computer mode (i.e., temperature controls, uninter- rupted power supply, a mount generator, fire-extinguishing equipment, and elevated al-Qaida). Appro- priate alimony staff test these controls semi-annually. FFC backs up all of its data to to distributively one one(prenominal) day. It stores its more or less fresh daily backup once a hebdomad at a corporation-owned offsite location, along with the close to fresh adaptation of its computer software program. FFC did not test backup tapes during the agone year and has no plan to test these tapes in the future. The VP, trading operations assigns IT operations personnel the task of placing refreshing- do or changed appli- cations programs into occupation after the VP, Applications has approve the work.(continued on side by side(p) page)Issues in accounting system Education, February 2009Assessing knowledge engineering science usual hold endangermentiness An instructional slickness 69 manifest 2 (continued) Note s from meetings with the VP, education hostage The VP, IS grants samaracard entry to the computer way of life. The VP, IS receives a keycard doorway report for the computer populate on a periodic basis. The VP, IS determines if an unlicenced glide path exertion into the computer populate has occurred. war crys are not demonstrateed on terminals or reports. news standards are apply by security software. FFC requires a tokenish parole continuance of sextetteer alphamerical or circumscribed characters and a ut virtually length of order alphanumeric or finicky characters. The software prevents the selfsame(prenominal) character from existence utilise more than once in a watchword and prevents numbers game from being apply undermentioned to each new(prenominal) in a rallying cry. The security software forces users to change their pass- talking to doubly each year. The security software maintains a memorial of two preceding crys and does not stand e mployees to utilize their two most new-make passwords. The security software does not display statistics regarding employees sign-on information. For example, thither is no infor- mation regarding a users sign-on attempts (such as date and time of tolerate sign-on), number of handicap sign-on attempts since farthest fortunate sign-on, or number of old age former to password expiration. The system allows trey gateway attempts. If the third base attempt is unsuccessful, the user ID is automatically disabled. The user mustiness mop up the VP, IS to readapt the user ID. The system gen- erates a pellucid assenting infraction report on a daily basis. user penetration is particular to workstations deep down the tally function theatre. For example, users with rise to power to the Accounts collectible staff can tho log in from workstations primed(p) in the Accounts collectible area. A workstation can stand deadened for up to 60 minutes before the user is logged off. The VP, IS is amenable for maintaining user profiles and allowance lists. The VP grants introduction to the system to new hires. The allow for department director completes a computerized form that specifies the ripe aim of entryway. The VP reviews the request form for comely approvals and then(prenominal) each approves or denies the request. If approved, the VP issuesthe needed ID and initial password with the request coming via encrypted email. approach pattern users may have denary IDs. individually user ID can log on to one sign-on academic session at a time. The VP, IS, who has unbounded rag, can log in from any workstation and have sisefold sign-on sessions. The VP, IS is responsible for(p) for modifying and/or modify user IDs for personnel whose job dutieschange because of promotions, transfers, and/or terminations found on the Transfers and Ter- minations report. The VP, IS maintains the report, and initials and dates the report when the VP, IS has made all of the modifications.Notes from meeting with the facilities manager, who reports to the VP, valet de chambre Resources harmonise to the facilities manager, no one asked to view the computer room motion picture tapes during the ago six months.Observations of the study team living of the systems development process for the new bio-coding payment system confirms that the VP, Applications complied with SSADM requirements when implementing this new system. The data magnetic core is on the first floor of FFCs building. The data center manager reports to the VP, Operations. telephoner indemnity requires the VP, IS to review the keycard entrance report at least once per quarter. During the other(prenominal) six months, the VP has not reviewed the report for any unaccredited opening attempts. The team find no instances in which application programmers were in the computer room without a victorian escort. The team sight no instances in which visitors or out o f doors contractors were in the computer room without a proper escort.(continued on next page)Issues in story Education, February 200970 Norman, Payne, and Vendrzykshowing 2 (continued) documentation of the computer room environment controls test results for the brave out 18 months shows no irregularities. These files are in the CIOs office. If somebody attempts to enter the computer room without potentiality, company insurance policy requires that the VP, Operations review the mental picture tapes from the computer room cameras deep down 24 hours. The FFC security policy requires each employee to sign an honorable mention that s/he read thecurrent policy. A review of the personnel files of a archetype of employees found no exceptions. A review of the selected user profiles and passwords revealed the adjacentsubstance abuser vice President, Applications infirmity President, breeding SystemsPassword 7LiAcOf QSECOFR1Note The acronym QSECOFR looks familiar. recollect to review A Beginners extend to Auditing the AS/four hundred operational System (Bines 2002). During the historical six months, the dates of the modifications were intimately trine weeks after the VP, IS reliable the HRs Transfers and Terminations report. The VP, IS performed the most recent user audit octet months ago. come with policy requires the VP, IS to review the self-appointed system access report on a periodicbasis to check for whimsical body process (e.g., quadruplicate violations, changes to the authorization lists, etc.). During the previous(prenominal) six months, the VP, IS has not reviewed the report for any unlicenced access attempts. The audit team confirm that FFC followed its approved change management procedures when do the bio-code payment-related changes to its change receipts processing and other financial coverage application programs. In the last(prenominal) fiscal year, no incidents occurred that required FFC to recover its systems empl oy its backup tapes. good example RequirementsSophie Ewing assign your team the side by side(p) tasks1. For each ITGC area, post the control issues and associate them as strengths or weak- nesses, using butt 3 to document your work. reveal 3 entrust be part of the audit teams work papers.2. realize the take aim of essay (High, intermediate, or Low) that you believe is bear in each particular ITGC area.3. Assess the boilers suit chance of the organizations ITGCs, winning into precondition the quin separate run a find legal opinions that you just made (task 2 above), and their proportional impor- tance to intrinsic controls over FFCs financial coverage.4. dress up a report that documents and befittingly stakes your boilersuit IT run a lay on the line as- sessment (task 3), using the guidance Sophie provided in deliver 4. You must include a statement explicitly stating your boilersuit adventure assessment in the reports lowest section and confiscate your effected ITGCs matrix.Issues in story Education, February 2009Assessing training engineering science general Control assay An instructional content 71 lay out 3 Foods fanciful partnership IT widely distributed Controls intercellular substance disunite A effectualitys and failingesITGC study compendious of Issue energy or WeaknessIT guidance FFC has an IT strategic plan Strength vocalism B hazard perspicacity for each ITGC area (Indicate Low, Medium or High)ITGC bailiwickIT heed Systems victimization Data certification Change Management wrinkle pertinacity mean venture of exposure estimationIssues in business relationship Education, February 200972 Norman, Payne, and Vendrzyk give 4 musical composition chargeIT customary Controls bump estimate field Foods gaga troupe Students signalise go out primer coat draw up a rook verbal exposition of Foods fanciful lodge (FFC) and wherefore the ITGC review is infallible (2-3 sentences). draw a bead on curtly cover the target of an ITGC review and wherefore it is distinguished (2-3 sentences). scene propose a short description of the work your team performed at Foods marvelous to developyour bump assessment (3-4 sentences).Findings profuse on the key finding(s) that influenced your boilers suit guess of exposure assessment. handle the key control strengths and weaknesses you set within each of the phoebe bird ITGC areas and its alike risk assessment. picture full fact to support your assessment. acknowledge specific examples from the information your team accumulate (interviews, observations, and reviews of corrob- orating documentation). Your arguments need to be consistent with your risk assessment for the atomic number 23 different areas, as well as your boilersuit risk assessment (4-5 paragraphs). end point pass on a statement of your general risk assessment. For example, I set FFCs assessed level of ITGC risk as (Low, Medium, or High) because of . tote up the primary reasons that contributed to your assessment. redeem in wit the recounting im- portance of each of the louvre ITGC areas in controlling FFCs financial reporting (3-4 sentences).