Is Audit and Internal Controls

IS Audit and

Internal Controls BHARATH RAO

Professional

• Audit

• Tax

• Company Matters

• Legal Complicances

• Accounts

• Statutory Audit

• Internal Audit

• Tax Audit (44AB, VAT etc)

• Special Audits

10/19/2013 blog.bharathraob.com

More work more pay

• IS Audit

• Design of Access, Process Controls

• Implementation of ERP

• Implementation of GRC

• Forensic Audit

• Legal Compliances and Frameworks for IT Governance: • Sarbanes - Oxley Act 2002 – Section 302 and 404

• Companies Act 2013 – Section 134 and 143

• ISO 27001

• ISO 27002

• ISO 27031

• COBIT 5/COSO Framework

Internal Controls

It means policies framed by the management in order to have stronger and adequate control within the organization, which can be checked by the internal or stat auditor in order to ensure that the goals and objectives are duly met.

Components of Internal

Controls

Control Environment

Risk Assessment

Control Activities

Information and

Communication Monitoring

Formula of Internal

Control

General Controls

IS Controls

Internal Controls

IS Controls

Application Controls

IT General Controls

Objective of IS Controls

Maintaining Confidentiality

Preserving Integrity

Ensuring Availability

Applications Controls

Application software is the software that processes business transactions.

The application software could be a payroll system, a retail banking system, an inventory system, a billing system or, possibly, an integrated ERP.

Controls, which relate to the business applications thereby leading to judicial use of the application and are enforced through the application itself to the end user.

Examples of Applications

• General Ledger

• Fixed Assets

• Inventory Control

• Sales

• Manufacturing Resource Planning (MRP)

• Human Resources

• And, everyone’s favorite – Payroll…

Types of Application

Controls

Input Controls

Data Checks

and Validation

Processing Controls

Duplicate Checks,

File Identificati

ons and validations

Output Controls

Update Authorizat

Integrity Controls

Data Encryption, Input

Validation

Management Trail

Snapshots, Time

Stamps

General Controls

ITGCs may also be referred to as General Computer Controls which are defined as: Controls, other than application controls, which relate to the environment within which computer-based application systems are developed, maintained and operated, and which are therefore applicable to all applications.

These are policies and procedures that relate to many applications and support the effective functioning of application controls by helping to ensure the continued proper operation of information systems.

Areas of IT General

controls

Physical Access Data Center IS Security

SDLC and Change

Management (CM)

Logical Controls Backup and Recovery

End User Computing

The IS audit

Checking the Documentation of Policies, Processes

Understanding the solutions that are present other than

business applications and

their role

Reviewing Logs that are generated

by applications

Testing and gathering of evidences based on Sampling

• Screen shots, Photos, Email Conversations, Scans

RCM – Risk control matrix

• Link

Sampling

Suggested Sample Size

Nature of Control Frequency of Performance Number of Items to Test per

Annual Number of Items to Test per

Quarter

Manual General Controls Many times per day 25 6-7

Manual General Controls Daily 20 5

Manual General Controls Weekly 10 2-3

Manual General Controls Monthly 3 1

Manual General Controls Quarterly 2 0-1

Manual General Controls Annually 1

Programmed General Controls Test one instance of each programmed control activity.

18 Thank you

• BHARATH RAO B

• +91 96113 19421 | bharath@bharathraob.com

• www.bharathraob.com

blog.bharathraob.com

/bharathraob

Is Audit and Internal Controls

Documents

MFI Internal Audit and Controls Trainer’s Manualmicrosave.net/files/pdf/Internal_Audit_and_Control_Overview.pdf · MFI Internal Audit and Controls Trainer’s Manual Section 1 -

Internal Audit Report 2014/2015 - Lambeth · Internal Audit Report 2014/2015 FINAL Internal audit report for Lambeth Living Limited PwC 3 Background Key financial controls form an

Internal Controls - Internal Audit Department

Toolkit for MFI Internal Audit and Controls

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INTERNAL CONTROL AND INTERNAL AUDIT - World · PDF fileINTERNAL CONTROL AND INTERNAL AUDIT ... covering all control activities in the public sector. Internal, covering controls exercised

Technical Guide on Audit of Internal Financial Controls in

Internal Financial Controls - ICAI · Internal Financial Controls Refresher Course on Internal Audit 19th September 2020 CA Sivaram Subramoniam The views discussed are presenter’s

INTERNAL AUDITS and INTERNAL CONTROLS - … · Internal Audits and Internal Controls Session Purpose: How does an internal audit function assist management in ensuring an entity has

INTERNAL CONTROLS AND RISK - American …sp.audit.transportation.org/Documents/Internal Controls...INTERNAL CONTROLS AND RISK AASHTO AUDIT SUBCOMMITTEE Annual Meeting Charleston, WV

Internal Audit, IS Audit, Risk Assessment & Internal ...onbconsulting.com/wp-content/uploads/2019/01/...Internal Audit, IS Audit, Risk Assessment & Internal Controls Review ... Designed

Getting Ready for an Internal Audit – Cycle 2 A Review of Internal Controls 1

Lecture 1-5 is Audit and Internal Controls

Internal Audit Internal Controls What are they? Why should I care?

Internal Audit Report--Payroll Internal Controls Cover...November 27, 2006 AUD 07-050 An Internal Audit Report by the Office of Auditor General On IReview of Internal Controls Related

Audit of Internal Financial controls over Financial …...Audit of Internal Financial controls over Financial Reporting What is ICFR & IFC? Old Approach: New Approach: A Practical

INTERNAL AUDIT SERVICES Internal Controls as they Relate to OMB Circular A-123

Philippine Government Internal Audit Manual · PDF fileon Controls in the Human Resource Management System, Quality Management System ... 4.4 Internal Audit Service/Internal Audit

ERP Information Technology General Controls Internal Audit 2

MNsure 1st Audit: Minnesota Health Insurance Exchange: MNsure Internal Controls and Compliance Audit