141 ISACA NACACS Auditing IT Projects Audit Program

[INSERT NAME OF AUDIT AND AUDIT NUMBER]Objectives

4. Provide management with an assessment of the adequacy of security controls implemented.

Scope

Audit Step W/P Ref

AA - Planning

1. Provide management with an independent assessment of the progress, quality and attainment of project objectives, at defined milestones within the project, based off of company policies and procedures.

2. Provide management with an assessment of the adequacy of project management methodologies and that the methodologies are applied consistently across all projects.

3. Provide management with an evaluation of the internal controls of proposed business processes at a point in the development cycle where enhancements can be easily implemented and processes adapted.

5. Provide management with an evaluation of the project metrics / KPIs and expected benefits stated within the project business case report.

The audit of the SDLC process will review each phase of a system implementation project. The audit will address the following areas: governance and risk management, compliance with company procedures and regulation, project management methodology, budget, internal controls, and business processes.

Preparer Sign-off

Reviewer Sign-off

1. Prepare the audit announcement / notification letter informing applicable people of the estimated start date of the audit, the objective and the scope. E-mail it to addressee(s). Maintain e-mail in audit file.

2. Prepare a budget of estimated audit hours by audit category. See Audit Time Budget tab. Identify audit staff that will be assigned to the engagement.

3. Review prior SDLC audits and permanent files to ensure understanding of SDLC process and previously identified audit findings. Document any risks noted in the Risk Assessment tab. Update information in the permanent files, if necessary.

4. Perform pre-audit risk assessment. Map risks identified with audit procedures by updating the Benchmarking and Detail Audit Testing tabs as necessary.

5. Obtain and review the most current SDLC Policies and Procedures manual from auditee. Update the Benchmarking and Detail Audit Testing tabs as necessary.

6. Research industry best practices (ISACA, IIA, NIST, ISO, PMBOK) and compliance requirements (PCI DSS, Privacy, HIPAA, etc.) that are applicable to the system being implemented. Update the Benchmarking and Detail Audit Testing tabs as necessary.

Audit Step W/P Ref Preparer Sign-off

Reviewer Sign-off

Detailed Audit TestingSee separate tab for detailed audit program.BB - Audit Conclusion and Reporting

a. Business case and planning phase.

b. Development and build phase.

c. Testing phase.

d. Pre Go-live & data conversion phase.

f. Training phase.

7. Schedule pre-audit meeting with audit team and IT Project Team to discuss the objectives, scope, timing, involvement and requirements of the audit. Maintain meeting minutes.

(Note: Audit Team should communicate to the Project Team the expectation that Audit Team will be invited to project meetings and included in any project e-mail groups.)

8. Prepare a preliminary request list of documentation and discuss it during the pre-audit meeting (e.g. flow charts, process narratives, listing of project team members, business case, system product information, etc).

1. Prepare Audit Memos for each major phase of the IT Project (see below) and e-mail it to Project Team and Project Sponsor. Request from addressee(s) response(s) to all audit findings, along with an implementation date.

2. Prepare draft Audit Report and e-mail it to direct addressee(s). Request from addressee(s) response(s) to all audit findings, along with an implementation date.

3. Schedule an audit completion meeting with the Project team and Project Sponsor within 2 weeks of issuing the draft report. Review draft audit report and discuss audit findings and recommendations. Maintain meeting minutes.

4. Review management response (i.e. Action Plan) to audit findings. Review completion date(s) of action items for reasonableness.

5. Prepare final version of Audit Report and include the responses received from addressee(s) for all audit findings (if applicable). E-mail it to addressee(s) and management.

6. Prepare and e-mail Audit Survey to auditees. Request that responses are returned to the Audit Manager. See Audit Survey tab.

Audit Step W/P Ref Preparer Sign-off

Reviewer Sign-off

CC - Follow-up Audit Procedures

DD - Audit Close-Out & Retention Dates

2. Update permanent file, if necessary.

5. This audit has been completed in its entirety as of: [insert date]

[insert date]

1. Perform follow-up procedures (if applicable) to ensure that responses to audit findings have been implemented. Follow-up procedures should be performed within 6 months of issuance date of audit report. (Note: If management hasn't addressed findings, schedule a meeting with applicable employees to discuss implementation of action plan. Maintain meeting minutes.)

2. Prepare Follow-up Audit Report and e-mail it to direct addressess(s) and management.

3. If management is not properly or timely addressing audit findings, escalate the matter to the CAE. Document escalation in a memorandum to the Audit Files.

1. Perform a residual risk assessment and incorporate risks into the annual audit risk assessment.

3. Review audit workpapers. Verify that all review notes have been properly addressed and closed. Verify that audit sign-offs have been performed by audit staff and reviewer(s).

4. Schedule a meeting of the audit team to discuss what worked well during the audit and areas for improvement to consider for future audits. Discuss with Audit Manager.

6. The audit report and workpapers shall be retained for 7 years from the date of completion, unless indicated otherwise (e.g. permanent files). The retentation date is:

Audit Area Budget Hours Actual Hours Notes

Audit Charge Code: Audit Manager: [Insert Auditor Name]PlanningReportingFollow-up Audit ProceduresAudit Close-outDetailed Audit Testing Project Governance Pre Implementation - Business Case & Project Planning Pre Implementation - System Development Pre Implementation - Testing Pre Implementation - Pre Go-Live & Conversion Pre Implementation - Training Post Implementation - Support & Maintenance Post Implementation - Project Assessment Post Implementation - Internal Controls AssessmentTotal Hours 0 0Audit Senior: [Insert Auditor Name]PlanningReportingFollow-up Audit ProceduresAudit Close-outDetailed Audit Testing Project Governance Pre Implementation - Business Case & Project Planning Pre Implementation - System Development Pre Implementation - Testing Pre Implementation - Pre Go-Live & Conversion Pre Implementation - Training Post Implementation - Support & Maintenance Post Implementation - Project Assessment Post Implementation - Internal Controls AssessmentTotal Hours 0 0

Audit Area Budget Hours Actual Hours Notes

Audit Staff: [Insert Auditor Name]PlanningReportingFollow-up Audit ProceduresAudit Close-outDetailed Audit Testing Project Governance Pre Implementation - Business Case & Project Planning Pre Implementation - System Development Pre Implementation - Testing Pre Implementation - Pre Go-Live & Conversion Pre Implementation - Training Post Implementation - Support & Maintenance Post Implementation - Project Assessment Post Implementation - Internal Controls AssessmentTotal Hours 0 0

[Provide a high level overview of the area(s), function(s), business process(es), and current systems that will be affected by the system being implmeneted.]

General listing of common risks that may occur during a system implementation project.

System does not align with strategic objectivesEnd Users do not accept the system due to poor designProject mismanagement leads to scope creep, budget overruns, and delaysSecurity vulnerabilitiesInternal control gapsLack of data completeness, accuracy, and integrityInability to adhere to regulation resulting in fines / penaltiesDamage to reputation (especially if system is used by external parties)Disruption of service

Risk Rating Definition

High Rating: The potential for a material impact on the company's earnings, assets, reputation, customers, and operations. This risk has a high likelihood of occurring.

Medium Rating: The potential for a significant impact on the company's earnings, assets, reputation, customers, and operations. This risk has a medium likelihood of occurring.

Low Rating: The potential for a significant impact on the company's earnings, assets, reputation, customers, and operations. This risk has a low likelihood of occurring.

Risk Assessment Questionnaire Audit Notes Risk Rating Audit StepAudit Senior Interview of Project Team MembersR1

R2 How critical is the system to the overall organization?

R3

R4

R5

R6

R7

R8

R9

R10

R11

R12

R13 What systems will be interfacing with the new system?

R14

R15 What data will be converted over to the new system?

R16

R17

R18

R19

R20

R21

R22

R23

R24 What areas do you believe could result in scope creep?

How will the new system benefit your area and the company the most?

Will the system be included in the corporate wide Disaster Recovery Plan and / or Business Continuity Plan?

(Note: Not all systems will be in the DRP due to low criticality rating. Auditor should ask if the department will prepare procedures to perform in situations where the system is unavailable? If not, then system should be reassessed to determine if it warrants Internal Audit attention due to its insignificance in regards to company wide needs).

Will this system be used by external parties (e.g. customers or business partners) or internally?

What function(s) do you believe will be impacted the most by the new system?

Will the new system change the business process(es) significantly?

Were other departmental groups included in the assessment of the product to ensure that it meets all user needs?

What are the weaknesses in your current process(es) and will they be addressed by the new system?

Will the new system require a significant amount of customization?

Will the system contain confidential information? If so, what kind of data (e.g. customer PII, employee PII, R&D, intellectual property, etc.)?

How will access to confidential data be safeguarded during the development of the system (e.g. security is generally not tight in a development or test environment)?

How will access to confidential data be safeguarded when system is in production through access rights (e.g. segregation of duties)?

What system(s) will be retired once the new system is in production?

Do you believe the data to be converted is complete and accurate (e.g. good data) or does the data need to be cleansed?

Do you believe the budgeted timeline for the project is acheivable?

If the estimated go-live date was significantly delayed, what would be the impact on the organization?

What do you believe would be the most challenging aspect of the project?

Do you believe that the project has the appropriate support from senior / upper management?

In looking back on previous implementation projects, what were the things that worked well and what were the things that did not work well? How do you plan on addressing the things that did not go well?

Do you have any concerns regarding project team personnel resources (e.g. availability, training, experience)?

Do you believe that there are departmental silos that may impact the development and implementation of the system?

Risk Assessment Questionnaire Audit Notes Risk Rating Audit StepR25

R26

R27

R28

R29

R30 [Add additional risks as needed]

Audit Team AssessmentR31 Indicate risks stated in the annual audit risk assessment.

R32

R33

R34

R35

R36

R37

R38 r

R39

R40

R41 [Add additional risks as needed]

Do you believe that the new system will require a significant amount of support from the Help Desk, IS, Super Users, or the Project Team members after it goes live?

Did you include an assessment of the vendor's security process related to the product you are purchasing for the history of vulnerabilities, notifying customers of vulnerabilities and remediating vulnerabilities identified through patching?

Will you be using a software development model in implementing this system? (e.g. rapid application development, joint application development, agile, spiral, prototype, or waterfall)

Will you be using any implementation tools on the cloud in implementing this system?

Does this system or the data that will be contained within it fall under the scope of international / federal / state regulation?

Indicate risks identified in review of prior SDLC audits performed.

Indicate any control deficiencies identified in the area(s), function(s), or business process(es) that have occurred in the past two years.

Determine if the members on the Project Team have the proper training and experience to manage a SDLC project.

Are there any financial risks concerning this project (e.g. going overbudget, impacting the financial statements, impacting customer billing or vendor payments, etc.)?

Are there any fraud risks that need to be considered (programming backdoors, unauthorized access to / theft of data, intentionally misconfiguring the system, unauthorized individual (internal employees and contractors) with access to data and / or systems)?

Are there any security risks that need to be considered (server / OS, application, data, placement in network infrastructure (segmentation))?

Review post implementation project assessment reports and identify any lessons learned that may pose a risk to this project.

Assess if there are any risks related to the response in question #R27.

Assess if there are any risks related to the response in question #R28.

Audit Risk Control Audit Procedures

Section A - GovernanceA1

A2

A3

A4

A5

Lack of procedures leads to mismanaged project, system not meeting business needs, and ineffective responsibilities and accountabilities.

IT project management policy, procedures, and templates have been developed and are reviewed on a periodic basis.

Employees do not have the required skills to implement a system leading to mismanaged project and system not meeting business needs.

Employees involved in IT system implementation projects have been trainined on policy, procedures and use of the templates.

Communication of project status are not performed throughout the life cycle of the project resulting in unidentified issues, surprises and delays.

Project Steering Committee provides oversight over IT system implementation projects.

A6

A7

A8

A9

A10

A11

A12

A13

Communication of project status are not performed throughout the life cycle of the project resulting in unidentified issues, surprises and delays.

Project Steering Committee provides oversight over IT system implementation projects.

Project Team meets regularly with project team members, subject matter experts, and system implementors / contractors to review project status and identify tasks and issues.

End Users do not accept or use the system.

An organizational change communication plan is developed and implemented. (typically for major systems)

A14

Section B - Pre-Implementation: Business Case and Project PlanningB1

B2

B3

B4

End Users do not accept or use the system.

An organizational change communication plan is developed and implemented. (typically for major systems)

Lack of business justification results in the purchase of a system that does not meet business needs.

IT projects are assessed according to organizational objectives and are approved.

Inadequate vendor is selected to implement the system resulting in cost overruns, project delays, and system not meeting business needs.

Vendor is selected according to company bid procedures.

B5

B6

B7

B8

B9

B10

B11

Inadequate contract terms may result in cost overruns, project delays, and exposure to additional risks (e.g. unauthorized access / disclosure of data).

Vendor contract is prepared according to company procedures.

Inadequate project planning may result in cost overruns, project delays, and system not meeting business needs.

A project plan is created to establish accountability and expectations.

B12

B13

B14

B15

Section C - Pre-Implementation: System Development -- Design & BuildC1

C2

C3

Inadequate project planning may result in cost overruns, project delays, and system not meeting business needs.

A project plan is created to establish accountability and expectations.


Project documentation is in conformance with company procedures.

System design team does not understand capabilities resulting in inadequate system design.

Project Team members are trained on the capabilities of the system prior to blueprinting.

Inadequate system design results in a system that does not meet user needs and increases likelihood of nonacceptance.

System design meetings are held with a crossfunctional group of users and technical SMEs.

System Development Plan meets business needs and is updated throughout the project.

C4

C5

C6

C7

Confidential data is properly secured. C8

Inadequate system design results in a system that does not meet user needs and increases likelihood of nonacceptance.

Security and internal control requirements are included in the System Development Plan.

System Development Plan is reviewed and approved by Project Sponsor.

Inadequate data conversion plan results in data integrity issues and increases likelihood of nonacceptance by users.

Data Conversion Plan is well designed and meets business needs.

C9

C10

C11

C12

C13

Inadequate data conversion plan results in data integrity issues and increases likelihood of nonacceptance by users.

Data Conversion Plan is reviewed and approved by Project Sponsor.



Project team members are unaware of system design documentation leading to a system that does not meet business needs.

Project documentation is communicated to Project team members.


System build is in conformance with company policies and procedures.

C14

C15

C16

C17

C18

C19

C20


System build is in conformance with company policies and procedures.

Inaccurate converted data results in data integrity issues and increases likelihood of nonacceptance by users.

Data in the old system is reviewed to ensure accuracy and integrity.

Inadequate testing of data conversion results in unidentified issues or errors occurring during the go-live phase.

Data conversion process is tested and errors are addressed.

C21

C22

C23

C24

C25

Lack of technical documentation leads to inability to effectively support the system.

System documentation is developed and maintained to current specifications.

Lack of project monitoring leads to budget overruns, delays and not meeting project objectives.

Project Lead reevalutes the project budget, timeline, and milestones against actual results throughout the project to identify any issues that need to be addressed.

C26

C27

C28

Section D - Pre-Implemetntation: Test D1

D2

D3

D4



Lack of a test plan may lead to ineffective testing resulting in acceptance of a system that does not meet business needs.

Test Plan is created to ensure testing is complete and system meets stated requirements prior to implementation.



Lack of a test plan may lead to ineffective testing resulting in acceptance of a system that does not meet business needs.

Test Plan is reviewed and approved by Project Sponsor.

Lack of a test environment results in ineffective testing and may lead to a system not meeting business needs.

Test environment is created and kept separate from the development and production environment.

D5

D6

D7

D8

D9

D10

D11

D12

D13

D14

D15

Lack of a test environment results in ineffective testing and may lead to a system not meeting business needs.

Test environment simulates the production environment.

Lack of cross functional testers may result in system not meeting business needs.

Testers are made up of cross functional users to ensure system meets business needs.

Lack of a test scripts may lead to ineffective testing resulting in acceptance of a system that does not meet business needs.

Test scripts are created and monitored for satisfactory results.

Testing issues identified are not resolved prior to implementation.

Issues are tracked in a log and monitored to ensure timely and proper resolution.

Lack of a test scripts may lead to ineffective testing resulting in acceptance of a system that does not meet business needs.

Test scripts are created and monitored for satisfactory results.

D16

D17

D18

D19

D20

D21

Section E - Pre-Implementation: System Pre Go-live & Data ConversionE1

E2

Lack of technical documentation leads to inability to effectively support the system.

System documentation is developed and maintained to current specifications.



Lack of implementation plan results in go-live steps being missed leading to a system that does not meet business needs or unavailability of the new system.

Implementation Plan is created to ensure a smooth and complete transition to the production environment.



E3

E4

E5

E6

E7

E8

E9

E10

Unresolved issues are tracked. E11

E12

Lack of implementation plan results in go-live steps being missed leading to a system that does not meet business needs or unavailability of the new system.

Implementation Plan is reviewed and approved by Project Sponsor.

Modification of loss of data in the old system may impact data conversion process.

Data in the old system is backed up prior to data conversion to production environment.

Inadequate testing of data conversion results in unidentified issues or errors occurring during the go-live phase.

Data conversion process is tested and errors are addressed.

Lack of testing of the production environment prior to go live may result in system not meeting business needs or unavailability of the system.

All test scripts have been completed with satisfactory results.

Production environment is tested to ensure it performs in the same capacity as the test environment.

Unresolved issues are not identified resulting in system not meeting business needs in production environment.

Unresolved issues are assessed for impact on the system prior to going live.

E13

E14

E15

E16

E17

E18

E19

E20

E21

E22

E23

Unresolved issues are not identified resulting in system not meeting business needs in production environment.

Unresolved issues are reviewed and approved.

Lack of security controls leads to security vulnerabilities in the system.

Privielged users do not have access to the production environment.

Security personnel review and approve the security specifications prior to system going live.

Lack of access review may lead to unauthorized users having access to the system or authorized users set up in the wrong access group.

System owner reviews and approves user access rights prior to system going live.

Lack of approval to go-live may result in system not meeting business needs.

Project Steering Committee approves system to go live.

Lack of go-live checklist results in go-live steps being missed leading to a system that does not meet business needs or unavailability of the new system.

Go-live checklist is maintained to track all go-live tasks and ensure all have been completed.



Section F - Pre-Implementation: TrainingUsers do not accept the system. F1

F2

F3

F4

F5

Section G - Post Implementation: Support & MaintenanceG1

G2

G3

G4

G5

G6

G7

Training is provided to users to provide them with the proper procedures in utilizing the system.

Lack of support personnel may lead to user frustration and lack of acceptance.

Support team is properly staffed to meet business needs.

Slow support response may lead to user frustration and lack of acceptance.

SLA metrics are developed and monitored to measure performance and meet business needs.

Support personnel do not understand system and are unable to resolve user issues.

Technical training is provided to support personnel on newly implemented systems.

Lack of change management procedures results in unauthorized changes being made, changes not being properly tested, and system documentation not being updated.

Change management procedures are in place and reviewed annually.

G8

G9

Section H - Post Implementation: Review of Project Results & Close OutH1

H2

H3

H4

H5

H6

Secion I - Post Implementation: Internal Controls AssessmentI1

I2

Lack of a patch management process leads to security vulnerability exposures.

Patch management procedures are in place and reviewed annually.

Lack of inventory listing leads to unauthorized devices / software on the network resulting in exposure to security vulnerabilities.

IT asset inventory listing is maintained and reviewed on an ongoing basis.

Evaluation of the management of the project is not performed, which could lead to ineffective project management practices, an ineffective system, and not meeting business objectives.

Post implementation review is performed by the Project Lead and reviewed by the Project Steering Committee.

Internal controls are not created or operating effectively for the system, which could lead to inaccurate financial reporting.

Internal controls are created or modified to ensure the safeguarding of assets and financial records. Controls to be considered:

- security- change management- operations- continuity- business processes

I3

I4

Internal controls are not created or operating effectively for the system, which could lead to inaccurate financial reporting.

Internal controls are created or modified to ensure the safeguarding of assets and financial records. Controls to be considered:

- security- change management- operations- continuity- business processes

Audit Procedures COBIT 5

Section A - GovernanceBAI01.01

BAI01.12 4

BAI01.02 3

5, 13, 16

Pre-Audit Risk #

Company Procedures

COSO Principle

Obtain and examine policy, procedures and templates. Verify that they address the following:

- Business Case Analysis- Project risk assessment- Roles and responsibilities- System documentation- System specification- User specification- Security specification- System development plan - Change requests- Developing internal controls- Project issue procedures- Data conversion plan - Test plan - Pre Go-live plan - Training- Organizational change management plan- Project monitoring & status updates- Post implementation project review

4, 5, 10, 11, 12

Examine training records and verify that employees on the project team have been trained on company IT project management procedures.

Verify that a Project Steering Committee exists, as evidenced by the committee charter.

A member of the Audit Team should attend the Project Steering Committee meetings.

Obtain and examine Project Steering Committee meeting minutes to verify that committee is reviewing project status, achievement of project milestones, monitoring budget-to-actual costs, and results of project measurements (i.e. KPIs).

BAI01.05, BAI01.06, BAI01.07, BAI01.11

14, 16

17

BAI01.08 16

BAI01.03 14

BAI01.03 15

BAI01.03 3

BAI01.03 14

Verify that the Project Team Lead is submitting status reports on a periodic basis and any other required documentation to the Project Steering Committee throughout the lifecycle of the project. Status reports should contain budget-to-actual comparison & variation analysis, monitoring of milestones & KPIs, description of achievements and any issues effecting the progress of the project.

BAI01.06, BAI01.07, BAI01.11

Verify that the Project Steering Committee has reviewed the post implementation project results report and develops an Action Plan to address any actionable lessons learned.

BAI01.06, BAI01.11

A member of the Audit Team should attend the Project Team status meetings.

Examine the Project Team's status meeting minutes and verify that the team discusses tasks completed / to be completed and issues identified / assigned / resolved.

Verify that an organizational change communication plan has been developed and should address:

- Assessing company's readiness to accept change- Educating end users on the reason and timing behind the change- Roles and responsibilities of organizational change management team- Vision and strategy for change- Communication of vision and strategy to end users- Remove barriers / silos that inhibit end user acceptance- Short-term and long-term goals identified and monitored- Identify training needs- Other communication activities (newsletter, posters, intranet site, etc.)- Continuous feedback

Verify that an external communication plan has been created to provide information to customers and / or business partners regarding the implementation of the system (if system will be used by these parties).

Verify that the Communication Plan has been approved by the Project Sponsor.

Verify that the communication plan has been implemented.

BAI01.03 14

Section B - Pre-Implementation: Business Case and Project PlanningBAI01.02 6

6, 7, 9, 13

APO10.02

APO10.02

Interview a sample of employees to determine the effectiveness of the communication plan and end user acceptance of system.

Verify that a Business Case Report has been developed and approved by the appropriate level of management and governance committee(s) (e.g. IT Steering Committee, Capital Assets Committee, etc.).

Verify that the Business Case Report includes:

- Current state of business process, identifying any control weaknesses- Expected future state of business process (consider future growth)- Addresses corporate / department strategic goals- Description of the application systems reviewed (e.g. proof of concepts, demos)- Reason behind system recommended to be implemented (e.g. feasibility study)- Cost benefit analysis (dollar & labor cost / benefits, other benefits)- Potential risks of the project and significance of risks- Potential impact to critical systems- Regulatory concerns / approvals- End User feedback

BAI01.02, BAI01.10, BAI02.02

Verify that a Request for Proposal was prepared and sent to selected vendors.

Verify that Vendor proposals were reviewed for:

- Reputation and experience of vendor- Experience of vendor personnel- Proposal content met scope of the project- Rates for time and expense- Ability to respond to system vulnerabilities and provide patches to customers timely

3

3, 5, 6, 7, 14

BAI01.07

14

BAI01.12

Verify that the vendor contract addresses the following:

- Vendor expectations- Deliverables- System requirements- Warranties and liabilities- Rates for time and expense (pymt terms based on achievement of milestones)- Change request process- Confidentiality / Non-Disclosure- Terms and conditions- Project timelines and milestones- Insurance requirements- Adherence to company policies and procedures in developing system- Terms to restore back to current system

BAI03.03, BAI03.04, APO10.01, APO10.02

Verify that the vendor contract has been approved by the appropriate level of management.

Verify that a Project Plan has been created and includes:

- Project objectives- Project scope- Project risk assessment- Identifies stakeholders- Project Sponsor- Team members- Roles and responsibilities- Budgets and timelines- Project milestones and KPIs- Communication plan- Deliverables- Change in scope procedures

BAI01.04, BAI01.05, BAI01.07, BAI01.08, BAI01.10, BAI01.12, BAI02.03

Verify that the Project Plan has been approved by the Project Team Lead and Project Sponsor.

Verify that a project kick-off meeting has been held to review the Project Plan with team members by obtaining the meeting minutes.

BAI01.07. BAI01.08

Assess project timelines and determine if timeline is reasonably acheivable.

Assess project pesonnel resources for:

- Availability- Cross functional respresentation of all departments impacted by system- Experience

BAI01.01

BAI01.01 12

BAI01.12 4

Section C - Pre-Implementation: System Development -- Design & Build10, 14

10, 14

5, 11

Review prior project lessons learned and determine if they have been properly incorporated into the Project Plan.

Verify that the Project Plan is in compliance with company procedures.

Verify that employees involved in the design and build of the application system have been properly trained to configure / customize the system and ability to use the system when performing tests.

Prepare an audit memorandum of the results of this phase of testing and distribute to the Project Team and Project Sponsor.

Verify that project design / blueprint meetings have been held to develop the System Development Plan and Data Conversion Plan by obtaining the meeting minutes.

BAI02.01, BAI03.01

Verify that the appropriate employees are participating in the project design meetings:

- Project team- System implementors- Subject matter experts- Super users - End users- Network administrators- System administrators- Security administrators

BAI01.12, BAI03.01

Verify that a System Development Plan has been created and includes:

- System documentation- System specification- User specification- Functional requirements- Reporting requirements- Customization- Security and internal controls requirements- Interfaces with other systems (consider impact on inter-operability)- Process and data flowcharts- Data storage- Issue identification and resolution- Constraints- Backout / Contingency Plan

BAI02.01, BAI03.01, BAI03.02, BAI03.03

5, 11

BAI03.01

11

Verify that security and internal control requirements consider the following:

- access rights based on least privilege- segregation of duties- system authorizations- edit checks- audit logs- input checks- matching checks- sequence checks- duplication checks- output - exception reporting

BAI02.01, BAI03.01, BAI03.02, BAI03.03

Verify that the System Development Plan has been approved by the Project Team Lead, Project Sponsor, and System Implementor.

Verify that a Data Conversion Plan has been created and includes:

- Identification of data to be transferred / converted- Data cleansing procedures- Error tolerances - Data mapping- Data extraction- Data transfer- Data validation test plans- Issue identification and resolution- Conversion timeline- Conversion tasks included in go-live checklist- Required approvals

BAI03.01, BAI03.02, BAI03.06, BAI07.01

Verify that the Project Team has developed the data map. Determine if data map is in sufficient detail to assist IT in converting the data and for testers in testing the system.

- flow chart of data movement- identification of common data elements- identification of field mapping between old system and new system- determine file format and layout for import: field length, format, name, values, etc.- translation of data values - identification of confidential / key data

BAI03.02, BAI07.02

Assess whether the data to be converted is confidential and whether appropriate security measures have been implemented to protect that data where it resides (e.g. dev / test / prod environments).

BAI03.02, BAI07.04

BAI02.04

BAI02.01 12

BAI01.08

11

11

Verify that the Data Conversion Plan has been approved by the Project Team Lead, Project Sponsor, and System Implementor.

Verify that the System Development Plan and Data Conversion Plan are in compliance with company procedures.

Verify that the System Development Plan and Data Conversion Plan have been discussed with applicable employees involved in implementing these plans.

Verify that any servers and operating systems pertaining to the new system have been configured according to the company's configuration management procedures.

- default and unncecssary accounts / services are disabled, if possible- disable local admin account- default passwords are changed and made complex for admin accounts, application / operating systems and any other new networked device- limiting admin privileges to those who have a business need to modify configuration- enable logging

BAI01.09, BAI03.05

Verify that any servers and operating systems pertaining to the new system have been secured according to the company's security procedures. Examples are:

- anti-virus / malware on server- password management enabled (log-on attempts, password change timeframe, password history)- admins have different passwords for admin accounts and non-admin accounts- disabling LM hashes- encryption- network segmentation- enable firewall- remote administration of servers over secure channels

BAI01.09, BAI03.05

11

BAI07.02

BAI07.02

BAI07.02

11, 13

BAI07.02

11

Verify that changes made to current systems (setting up interfaces, extracting data, importing data) follow the company's change management procedures.

- changes are documented- changes are tested- changes are approved by business and IT prior to migration into production environment- quality assurance review

BAI01.09, BAI03.05,

BAI06

Verify that the data cleansing has been performed by determining if the Project Team verified that:

- All mandatory fields are populated- All records are present- Default or dummy values cannot be inserted where there is missing data- Data is complete- No duplication of data fields

For data that has not been cleansed, determine potential risks and impacts to the project. Determine if error tolerances have been evaluated against the approved thresholds stated in the Data Conversion Plan.

Verify that the Project Team has verified the accuracy, integrity and completeness of data conversion to the test system by reviewing test documentation.

Verify that data converted to the test system is complete, accurate, and has integrity.

- batch and control totals- check sums / digits- range checks- date and time stamps- use a data analysis tool to compare a sample of data from the old system and the new system- verify a test sample of data to source documentation

BAI03.05, BAI03.06, BAI07.02

Verify that the Project Team addresses any errors or omissions identified as part of testing the data conversion.

Verify that appropriate controls are in place to prevent or detect any data manipulation during the conversion process and that they are operating effectively.

BAI03.05, BAI07.02

11

BAI07.02 11

11

Verify that the Project Team has maintained documentation of process design, configuration, and customization.

- flow charts- screenshots- exhibits of code- online and batch operating instructions- system narratives- configuration baselines

BAI03.05, BAI07.02, BAI10.03

At the end of the system build phase, verify that the Project Team has created the User Manual. The manual may include:

- description of the system- use of the system- input data and parameters- output data- operating procedures- error identification and resolution- user responsibilities related to security, privacy and internal controls

At the end of the system build phase, verify that the Project Team has created the Operations and Maintenance Manual. This manual may include:

- description of software- instructions to operate software- technical flow charts- exhibits of code- technical specifications- security specifications- description of internal controls- description of non-routine procedures and security requirements- procedures for error resolution- maintenance procedures- configuration baselines

BAI01.09, BAI02.01, BAI03.03, BAI03.05, BAI03.10, BAI10.03

Determine if any change orders have been approved. If so, verify if the project budget cost, labor hours and timeline have been updated. Determine if there is any risk due to scope creep.

BAI01.11, BAI03.09

Verify that any milestone(s) achieved during this phase have been reviewed and approved by the Project Sponsor.

BAI01.08, BAI01.11

BAI01.05

Section D - Pre-Implemetntation: Test 11

12

BAI07.03

12

Verify that the Project Lead has reviewed the Project Plan to ensure that the project is on target with budgets, milestones and timeline. Verify that Project Lead has reassessed the project risks for the activities in this phase. Verify the Project Lead has updated the Project Plan, if necessary.

BAI01.10, BAI01.11, BAI02.03

Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project in the testing phase (e.g. going over budget in the design and build phase may lead to decreasing hours dedicated to testing system).


Verify that a Test Plan has been created and includes the following:

- testing methodology, including types of tests to be performed (e.g. functional, unit, integration, end-to-end, acceptance, performance, parallel / pilot, volume / stress, regression, quality assurance, penetration, scanning, fuzzing, testing for failures, security)- Testing procedures- Testing templates / scripts (purpose, procedure, conclusion, sign-off)- Testing documentation to be maintained, along with retention period- Reporting, tracking and remediating issues identified during testing- Acceptance and approval of test results- test location and preparation

BAI01.09, BAI03.06, BAI03.07, BAI07.01, BAI07.03

Verify that the Test Plan is in compliance with company policy and procedures.

BAI01.01, BAI03.07, BAI07.03

Verify that the Test Plan has been reviewed and approved by the Project Leader and Project Sponsor.

Verify that there is a separate test environment from the development and production environment.

BAI03.07, BAI07.04

4

11

11

11

11

11

11

Verify that the test environment simluates the production environment.

BAI03.07, BAI07.04

Verify that the Project Team has identified all employees to be used in the testing process. Verify that these employees:

- have been provided training on how to use the system- have been provided a copy of the Test Plan- understand their roles and responsibilities regarding testing the system- have the availability to perform the required test scripts and retest if necessary- are from business areas in the company that will be using the system

BAI01.12, BAI03.08, BAI07.03

Verify that test scripts have been created for all tests that are to be performed and have been mapped back to System Development Plan specifications.

BAI01.09, BAI03.06, BAI03.07, BAI07.03

Verify that the test scripts created are testing for failures in the process or negative testing where users can't perform functions that are beyond their authorization or responsibilities.

BAI03.06, BAI07.05

Verify that test scripts include testing of security and system controls.

Verify that the Project Team is tracking the performance and completion of all test scripts.

BAI03.08, BAI07.05

Verify that the Project Team is tracking all issues identified on a log where the issue is assigned to an owner for resolution. Verify that the remediated issue is retested with a satisfactory result.

BAI03.06, BAI03.08, BAI07.05

Verify that the Project Team is tracking testing documentation and ensuring it is being maintained for all test scripts.

BAI01.09, BAI03.08, BAI07.05

Select a sample of test scripts and observe the Testers performing the tests. Verify that the Testers are performing the tests in accordance with the Test Plan.

Select a sample of test scripts and reperform. Compare the audit results to the Tester's results.

Use a data analysis tool to identify any gaps in the security or internal control requirements.

11, 12

BAI01.05

Section E - Pre-Implementation: System Pre Go-live & Data Conversion11

BAI01.01 12

Verify that the User Manual and / or Operations Manual have been updated for any changes that occurred during the testing phase to ensure complete and accurate system documentation.

BAI02.01, BAI03.10


BAI01.11, BAI03.09


BAI01.08, BAI01.11


BAI01.10, BAI01.11

Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project in the go-live phase.


Verify that an Implementation Plan has been created and includes:

- implementation schedule- development of production environment- testing of production environment- securing production environment- data conversion- data back-up- contingency / fallback plan- approvals to go live- resolution of any issues identified prior to go-live- acceptance of any unresolved issues identified - tracking go-live tasks (e.g. checklist)- go / no-go criteria

BAI01.09, BAI07.01, BAI07.06

Verify that the Implementation Plan is in compliance with company policy and procedures.

BAI07.01 11

BAI07.02

11

11

11

BAI01.09 11

BAI01.09 11

BAI07.05

BAI07.05

Verify that the Implementation Plan has been reviewed and approved by the Project Lead, Project Sponsor, and System Implementor.

Evaluate the implementation schedule and determine if it is reasonable and achievable.

Verify that the data in the current system is backed up prior to converting data to the new system.

Verify that data converted to the production system is complete, accurate, and has integrity.

- batch and control totals- check sums / digits- range checks- date and time stamps- user reconciliations / data validation- use a data analysis tool to compare a sample of data from the old system and the new system- verify a test sample of data to source documentation

BAI01.09, BAI07.02


BAI01.09, BAI07.02

Verify that the Project Team addresses any errors or omissions identified as part of testing the data conversion prior to going live with the system.

BAI01.09, BAI07.02

Verify that all test scripts have been completed and any issues identified during the testing phase have been resolved prior to the system going live.

Verify that tests scripts performed on the production environment have been completed and any issues identified have been resolved prior to the system going live.

Verify that unresolved issues have been identified by the Project Lead and are being tracked.

Verify that any unresolved issues that will not be addressed prior to go live will not have a significant impact on the production system.

BAI07.05

BAI01.09 11

BAI01.09 11

BAI01.09 11

11

3

BAI01.09

BAI01.05

Verify that unresolved issues have been reviewed and approved by the Project Sponsor and Project Steering Committee prior to going live.

Verify that the production environment has the appropriate security controls to prevent access to the system by administrators or the system implementors once the system is live.

Verify that the Security group has reviewed the security specifications of the system and has approved it to go-live.

Verify that the system owner has reviewed and approved the access rights of end users and assignment of user groups.

Verify that the Project Lead has communicated the results of the system build and testing phases to the Project Steering Committee, along with any issues that are expected to be unresolved by the go-live date.

Verify that the Project Steering Committee has approved the system to go live.

Verify that all tasks on the go-live checklist have been signed-off on prior to going live.


BAI01.08, BAI01.11


BAI01.10, BAI01.11

Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project and consider discussing with the Project Steering Committee.


Section F - Pre-Implementation: TrainingBAI08.04 4

BAI08.04 4, 14

14

Section G - Post Implementation: Support & Maintenance

13

BAI03.11

BAI02.01

11

BAI03.10 11

Verify that the Project Team has developed a training program based off of the User Manual and Operations Manual.

Verify that end users, super users, and technical support personnel are properly trained on the new system.

Review training schedule and attendance sheets to determine that users attended the training.

Verify that surveys were provided to users regarding feedback on the training materials. Verify that comments are incorporated into the training program and / or User Manual.


Verify that management has committed the appropriate additional resources to support the system and respond to end users' needs post go-live for a predetermined amount of time (e.g 3 months).

BAI03.10, BAI07.07

Verify that in-house support personnel have stated service level agreement metrics to meet the needs of the end users timely.

BAI01.06, BAI03.11

Determine if the level of support is meeting its SLA metrics.

BAI01.06, BAI03.10, BAI03.11

Determine if management will be relying on vendor support for the system. If so, obtain and review support contract for terms and agreement, confidentiality, and access rights. Determine level of support during an incident / disaster.

Verify that all support personnel have received training on the Operations Manual.

Verify that any changes made to the system by support personnel follow the company's change management policy and procedures.

BAI03.10, BAI06

Verify that there is a process in place to update the Operations Manual based on changes made.Verify that there is a process in place to update the Operations Manual based on changes made.

BAI03.10 11, 12

Section H - Post Implementation: Review of Project Results & Close Out11, 13, 14

11, 13, 16, 17

BAI01.14

BAI01.14

Secion I - Post Implementation: Internal Controls Assessment11

11, 12, 17

Verify that the system is included in the patch management policy and procedures.

Verify that the hardware and software associated with this implementation project have been included in the company's inventory listing of IT assets.

BAI03.04, BAI09.01

Verify that the Project Lead has performed a post implementation assessment. The assessment should include:

- determination if project objectives were achieved - assessment on cost benefit analysis presented in business case- assessment of project budgets (cost, labor hours, timeline) in comparison with actual results- project metrics, KPIs- feedback from end users on acceptance of system- identifying lessons learned

BAI01.05, BAI01.06, BAI01.11, BAI01.13, BAI07.08

Evaluate the lessons learned identified by the Project Lead and determine if they address the findings noted in the audit memorandums issued.

BAI01.13, BAI07.08

For any unresolved issues, verify that they have been assigned an owner and estimated completion date. Verify that unresolved issues are tracked and closed out timely.

BAI01.13, BAI07.08

Verify that the Project Lead presented the post implementation assessment results to the Project Steering Committee.

BAI01.06, BAI01.11

Verify that project documentation is properly secured and retained according to retention policy and procedures.

Verify that the Project Lead has obtained approval from the Project Steering Committee to close the project.

Verify that the ITGC and business process internal control documentation (e.g. narrative, flow charts, matrices) have been created or modified to accommodate the new system.

Verify if policies, procedures, and internal controls have been revised based on the project's lessons learned.

11

a. Test the ITGC controls. b. Test the Business Process controls.

BAI09.02 11

Test the internal controls to verify that they are operating effectively.

Verify that the new system has been added to the Disaster Recovery Procedures Manual. (Note: based on the criticality of the system, the company may decide not to include it in the DRP. In this situation, assess if the system owner needs to consider a business continuity plan).

Section A - Governance

20 Critical Security Controls

Section B - Pre-Implementation: Business Case and Project Planning

Section C - Pre-Implementation: System Development -- Design & Build

CSC 17-3

CSC 3-1, 3-3, 3-4, 12-1, 12-3,

12-4

CSC 3-7, 12-6, 12-8, 12-9, 17-

1, 19-4

Section D - Pre-Implemetntation: Test

CSC 6-6

CSC6-3

Section E - Pre-Implementation: System Pre Go-live & Data Conversion

Section F - Pre-Implementation: Training

Section G - Post Implementation: Support & Maintenance

CSC 6-1

CSC 1 & 2

Section H - Post Implementation: Review of Project Results & Close Out

Secion I - Post Implementation: Internal Controls Assessment

Audit Procedures Testing Comments / Conclusions W/P Ref Findings

Section A - GovernanceA1

A2

A3

A4

A5

Preparer Sign-off

Reviewer Sign-off

Obtain and examine policy, procedures and templates. Verify that they address the following:

- Business Case Analysis- Project risk assessment- Roles and responsibilities- System documentation- System specification- User specification- Security specification- System development plan - Change requests- Developing internal controls- Project issue procedures- Data conversion plan - Test plan - Pre Go-live plan - Training- Organizational change management plan- Project monitoring & status updates- Post implementation project review

Examine training records and verify that employees on the project team have been trained on company IT project management procedures.

Verify that a Project Steering Committee exists, as evidenced by the committee charter.

A member of the Audit Team should attend the Project Steering Committee meetings.

Obtain and examine Project Steering Committee meeting minutes to verify that committee is reviewing project status, achievement of project milestones, monitoring budget-to-actual costs, and results of project measurements (i.e. KPIs).

Audit Procedures Testing Comments / Conclusions W/P Ref Findings Preparer Sign-off

Reviewer Sign-off

A6

A7

A8

A9

A10

Verify that the Project Team Lead is submitting status reports on a periodic basis and any other required documentation to the Project Steering Committee throughout the lifecycle of the project. Status reports should contain budget-to-actual comparison & variation analysis, monitoring of milestones & KPIs, description of achievements and any issues effecting the progress of the project.

Verify that the Project Steering Committee has reviewed the post implementation project results report and develops an Action Plan to address any actionable lessons learned.

A member of the Audit Team should attend the Project Team status meetings.

Examine the Project Team's status meeting minutes and verify that the team discusses tasks completed / to be completed and issues identified / assigned / resolved.

Verify that an organizational change communication plan has been developed and should address:

- Assessing company's readiness to accept change- Educating end users on the reason and timing behind the change- Roles and responsibilities of organizational change management team- Vision and strategy for change- Communication of vision and strategy to end users- Remove barriers / silos that inhibit end user acceptance- Short-term and long-term goals identified and monitored- Identify training needs- Other communication activities (newsletter, posters, intranet site, etc.)- Continuous feedback


Reviewer Sign-off

A11

A12

A13

A14

Section B - Pre-Implementation: Business Case and Project PlanningB1

B2

Verify that an external communication plan has been created to provide information to customers and / or business partners regarding the implementation of the system (if system will be used by these parties).

Verify that the Communication Plan has been approved by the Project Sponsor.

Verify that the communication plan has been implemented.

Interview a sample of employees to determine the effectiveness of the communication plan and end user acceptance of system.

Verify that a Business Case Report has been developed and approved by the appropriate level of management and governance committee(s) (e.g. IT Steering Committee, Capital Assets Committee, etc.).

Verify that the Business Case Report includes:

- Current state of business process, identifying any control weaknesses- Expected future state of business process (consider future growth)- Addresses corporate / department strategic goals- Description of the application systems reviewed (e.g. proof of concepts, demos)- Reason behind system recommended to be implemented (e.g. feasibility study)- Cost benefit analysis (dollar & labor cost / benefits, other benefits)- Potential risks of the project and significance of risks- Potential impact to critical systems- Regulatory concerns / approvals- End User feedback


Reviewer Sign-off

B3

B4

B5

B6

Verify that a Request for Proposal was prepared and sent to selected vendors.

Verify that Vendor proposals were reviewed for:

- Reputation and experience of vendor- Experience of vendor personnel- Proposal content met scope of the project- Rates for time and expense- Ability to respond to system vulnerabilities and provide patches to customers timely

Verify that the vendor contract addresses the following:

- Vendor expectations- Deliverables- System requirements- Warranties and liabilities- Rates for time and expense (pymt terms based on achievement of milestones)- Change request process- Confidentiality / Non-Disclosure- Terms and conditions- Project timelines and milestones- Insurance requirements- Adherence to company policies and procedures in developing system- Terms to restore back to current system

Verify that the vendor contract has been approved by the appropriate level of management.


Reviewer Sign-off

B7

B8

B9

B10

B11

B12

B13

B14

Verify that a Project Plan has been created and includes:

- Project objectives- Project scope- Project risk assessment- Identifies stakeholders- Project Sponsor- Team members- Roles and responsibilities- Budgets and timelines- Project milestones and KPIs- Communication plan- Deliverables- Change in scope procedures

Verify that the Project Plan has been approved by the Project Team Lead and Project Sponsor.

Verify that a project kick-off meeting has been held to review the Project Plan with team members by obtaining the meeting minutes.

Assess project timelines and determine if timeline is reasonably acheivable.

Assess project pesonnel resources for:

- Availability- Cross functional respresentation of all departments impacted by system- Experience

Review prior project lessons learned and determine if they have been properly incorporated into the Project Plan.

Verify that the Project Plan is in compliance with company procedures.

Verify that employees involved in the design and build of the application system have been properly trained to configure / customize the system and ability to use the system when performing tests.


Reviewer Sign-off

B15

Section C - Pre-Implementation: System Development -- Design & BuildC1

C2

C3


Verify that project design / blueprint meetings have been held to develop the System Development Plan and Data Conversion Plan by obtaining the meeting minutes.

Verify that the appropriate employees are participating in the project design meetings:

- Project team- System implementors- Subject matter experts- Super users - End users- Network administrators- System administrators- Security administrators

Verify that a System Development Plan has been created and includes:

- System documentation- System specification- User specification- Functional requirements- Reporting requirements- Customization- Security and internal controls requirements- Interfaces with other systems (consider impact on inter-operability)- Process and data flowcharts- Data storage- Issue identification and resolution- Constraints- Backout / Contingency Plan


Reviewer Sign-off

C4

C5

C6

Verify that security and internal control requirements consider the following:

- access rights based on least privilege- segregation of duties- system authorizations- edit checks- audit logs- input checks- matching checks- sequence checks- duplication checks- output - exception reporting

Verify that the System Development Plan has been approved by the Project Team Lead, Project Sponsor, and System Implementor.

Verify that a Data Conversion Plan has been created and includes:

- Identification of data to be transferred / converted- Data cleansing procedures- Error tolerances - Data mapping- Data extraction- Data transfer- Data validation test plans- Issue identification and resolution- Conversion timeline- Conversion tasks included in go-live checklist- Required approvals


Reviewer Sign-off

C7

C8

C9

C10

C11

Verify that the Project Team has developed the data map. Determine if data map is in sufficient detail to assist IT in converting the data and for testers in testing the system.

- flow chart of data movement- identification of common data elements- identification of field mapping between old system and new system- determine file format and layout for import: field length, format, name, values, etc.- translation of data values - identification of confidential / key data

Assess whether the data to be converted is confidential and whether appropriate security measures have been implemented to protect that data where it resides (e.g. dev / test / prod environments).

Verify that the Data Conversion Plan has been approved by the Project Team Lead, Project Sponsor, and System Implementor.

Verify that the System Development Plan and Data Conversion Plan are in compliance with company procedures.

Verify that the System Development Plan and Data Conversion Plan have been discussed with applicable employees involved in implementing these plans.


Reviewer Sign-off

C12

C13

Verify that any servers and operating systems pertaining to the new system have been configured according to the company's configuration management procedures.

- default and unncecssary accounts / services are disabled, if possible- disable local admin account- default passwords are changed and made complex for admin accounts, application / operating systems and any other new networked device- limiting admin privileges to those who have a business need to modify configuration- enable logging

Verify that any servers and operating systems pertaining to the new system have been secured according to the company's security procedures. Examples are:

- anti-virus / malware on server- password management enabled (log-on attempts, password change timeframe, password history)- admins have different passwords for admin accounts and non-admin accounts- disabling LM hashes- encryption- network segmentation- enable firewall- remote administration of servers over secure channels


Reviewer Sign-off

C14

C15

C16

C17

Verify that changes made to current systems (setting up interfaces, extracting data, importing data) follow the company's change management procedures.

- changes are documented- changes are tested- changes are approved by business and IT prior to migration into production environment- quality assurance review

Verify that the data cleansing has been performed by determining if the Project Team verified that:

- All mandatory fields are populated- All records are present- Default or dummy values cannot be inserted where there is missing data- Data is complete- No duplication of data fields

For data that has not been cleansed, determine potential risks and impacts to the project. Determine if error tolerances have been evaluated against the approved thresholds stated in the Data Conversion Plan.

Verify that the Project Team has verified the accuracy, integrity and completeness of data conversion to the test system by reviewing test documentation.


Reviewer Sign-off

C18

C19

C20

C21

Verify that data converted to the test system is complete, accurate, and has integrity.

- batch and control totals- check sums / digits- range checks- date and time stamps- use a data analysis tool to compare a sample of data from the old system and the new system- verify a test sample of data to source documentation

Verify that the Project Team addresses any errors or omissions identified as part of testing the data conversion.


Verify that the Project Team has maintained documentation of process design, configuration, and customization.

- flow charts- screenshots- exhibits of code- online and batch operating instructions- system narratives- configuration baselines


Reviewer Sign-off

C22

C23

C24

C25

At the end of the system build phase, verify that the Project Team has created the User Manual. The manual may include:

- description of the system- use of the system- input data and parameters- output data- operating procedures- error identification and resolution- user responsibilities related to security, privacy and internal controls

At the end of the system build phase, verify that the Project Team has created the Operations and Maintenance Manual. This manual may include:

- description of software- instructions to operate software- technical flow charts- exhibits of code- technical specifications- security specifications- description of internal controls- description of non-routine procedures and security requirements- procedures for error resolution- maintenance procedures- configuration baselines




Reviewer Sign-off

C26

C27

C28

Section D - Pre-Implemetntation: Test D1

D2


Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project in the testing phase (e.g. going over budget in the design and build phase may lead to decreasing hours dedicated to testing system).


Verify that a Test Plan has been created and includes the following:

- testing methodology, including types of tests to be performed (e.g. functional, unit, integration, end-to-end, acceptance, performance, parallel / pilot, volume / stress, regression, quality assurance, penetration, scanning, fuzzing, testing for failures, security)- Testing procedures- Testing templates / scripts (purpose, procedure, conclusion, sign-off)- Testing documentation to be maintained, along with retention period- Reporting, tracking and remediating issues identified during testing- Acceptance and approval of test results- test location and preparation

Verify that the Test Plan is in compliance with company policy and procedures.


Reviewer Sign-off

D3

D4

D5

D6

D7

D8

D9

D10

D11

Verify that the Test Plan has been reviewed and approved by the Project Leader and Project Sponsor.

Verify that there is a separate test environment from the development and production environment.

Verify that the test environment simluates the production environment.

Verify that the Project Team has identified all employees to be used in the testing process. Verify that these employees:

- have been provided training on how to use the system- have been provided a copy of the Test Plan- understand their roles and responsibilities regarding testing the system- have the availability to perform the required test scripts and retest if necessary- are from business areas in the company that will be using the system

Verify that test scripts have been created for all tests that are to be performed and have been mapped back to System Development Plan specifications.

Verify that the test scripts created are testing for failures in the process or negative testing where users can't perform functions that are beyond their authorization or responsibilities.

Verify that test scripts include testing of security and system controls.

Verify that the Project Team is tracking the performance and completion of all test scripts.

Verify that the Project Team is tracking all issues identified on a log where the issue is assigned to an owner for resolution. Verify that the remediated issue is retested with a satisfactory result.


Reviewer Sign-off

D12

D13

D14

D15

D16

D17

D18

D19

D20

D21

Section E - Pre-Implementation: System Pre Go-live & Data Conversion

Verify that the Project Team is tracking testing documentation and ensuring it is being maintained for all test scripts.

Select a sample of test scripts and observe the Testers performing the tests. Verify that the Testers are performing the tests in accordance with the Test Plan.

Select a sample of test scripts and reperform. Compare the audit results to the Tester's results.

Use a data analysis tool to identify any gaps in the security or internal control requirements.

Verify that the User Manual and / or Operations Manual have been updated for any changes that occurred during the testing phase to ensure complete and accurate system documentation.




Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project in the go-live phase.



Reviewer Sign-off

E1

E2

E3

E4

E5

Verify that an Implementation Plan has been created and includes:

- implementation schedule- development of production environment- testing of production environment- securing production environment- data conversion- data back-up- contingency / fallback plan- approvals to go live- resolution of any issues identified prior to go-live- acceptance of any unresolved issues identified - tracking go-live tasks (e.g. checklist)- go / no-go criteria

Verify that the Implementation Plan is in compliance with company policy and procedures.

Verify that the Implementation Plan has been reviewed and approved by the Project Lead, Project Sponsor, and System Implementor.

Evaluate the implementation schedule and determine if it is reasonable and achievable.

Verify that the data in the current system is backed up prior to converting data to the new system.


Reviewer Sign-off

E6

E7

E8

E9

E10

E11

E12

E13

Verify that data converted to the production system is complete, accurate, and has integrity.

- batch and control totals- check sums / digits- range checks- date and time stamps- user reconciliations / data validation- use a data analysis tool to compare a sample of data from the old system and the new system- verify a test sample of data to source documentation


Verify that the Project Team addresses any errors or omissions identified as part of testing the data conversion prior to going live with the system.

Verify that all test scripts have been completed and any issues identified during the testing phase have been resolved prior to the system going live.

Verify that tests scripts performed on the production environment have been completed and any issues identified have been resolved prior to the system going live.

Verify that unresolved issues have been identified by the Project Lead and are being tracked.

Verify that any unresolved issues that will not be addressed prior to go live will not have a significant impact on the production system.

Verify that unresolved issues have been reviewed and approved by the Project Sponsor and Project Steering Committee prior to going live.


Reviewer Sign-off

E14

E15

E16

E17

E18

E19

E20

E21

E22

E23

Section F - Pre-Implementation: Training

Verify that the production environment has the appropriate security controls to prevent access to the system by administrators or the system implementors once the system is live.

Verify that the Security group has reviewed the security specifications of the system and has approved it to go-live.

Verify that the system owner has reviewed and approved the access rights of end users and assignment of user groups.

Verify that the Project Lead has communicated the results of the system build and testing phases to the Project Steering Committee, along with any issues that are expected to be unresolved by the go-live date.

Verify that the Project Steering Committee has approved the system to go live.

Verify that all tasks on the go-live checklist have been signed-off on prior to going live.



Review the project actual cost, labor hours and timeline in comparison with the budget. Determine if there are any risks that may impact the project and consider discussing with the Project Steering Committee.



Reviewer Sign-off

F1

F2

F3

F4

F5

Section G - Post Implementation: Support & MaintenanceG1

G2

G3

G4

G5

G6

Verify that the Project Team has developed a training program based off of the User Manual and Operations Manual.

Verify that end users, super users, and technical support personnel are properly trained on the new system.

Review training schedule and attendance sheets to determine that users attended the training.

Verify that surveys were provided to users regarding feedback on the training materials. Verify that comments are incorporated into the training program and / or User Manual.


Verify that management has committed the appropriate additional resources to support the system and respond to end users' needs post go-live for a predetermined amount of time (e.g 3 months).

Verify that in-house support personnel have stated service level agreement metrics to meet the needs of the end users timely.

Determine if the level of support is meeting its SLA metrics.

Determine if management will be relying on vendor support for the system. If so, obtain and review support contract for terms and agreement, confidentiality, and access rights. Determine level of support during an incident / disaster.

Verify that all support personnel have received training on the Operations Manual.

Verify that any changes made to the system by support personnel follow the company's change management policy and procedures.


Reviewer Sign-off

G7

G8

G9

Section H - Post Implementation: Review of Project Results & Close OutH1

H2

H3

H4

Verify that there is a process in place to update the Operations Manual based on changes made.Verify that there is a process in place to update the Operations Manual based on changes made.

Verify that the system is included in the patch management policy and procedures.

Verify that the hardware and software associated with this implementation project have been included in the company's inventory listing of IT assets.

Verify that the Project Lead has performed a post implementation assessment. The assessment should include:

- determination if project objectives were achieved - assessment on cost benefit analysis presented in business case- assessment of project budgets (cost, labor hours, timeline) in comparison with actual results- project metrics, KPIs- feedback from end users on acceptance of system- identifying lessons learned

Evaluate the lessons learned identified by the Project Lead and determine if they address the findings noted in the audit memorandums issued.

For any unresolved issues, verify that they have been assigned an owner and estimated completion date. Verify that unresolved issues are tracked and closed out timely.

Verify that the Project Lead presented the post implementation assessment results to the Project Steering Committee.


Reviewer Sign-off

H5

H6

Secion I - Post Implementation: Internal Controls AssessmentI1

I2

I3

a. Test the ITGC controls. b. Test the Business Process controls.

I4

Verify that project documentation is properly secured and retained according to retention policy and procedures.

Verify that the Project Lead has obtained approval from the Project Steering Committee to close the project.

Verify that the ITGC and business process internal control documentation (e.g. narrative, flow charts, matrices) have been created or modified to accommodate the new system.

Verify if policies, procedures, and internal controls have been revised based on the project's lessons learned.

Test the internal controls to verify that they are operating effectively.

Verify that the new system has been added to the Disaster Recovery Procedures Manual. (Note: based on the criticality of the system, the company may decide not to include it in the DRP. In this situation, assess if the system owner needs to consider a business continuity plan).

Internal Audit Quality Assurance

Audit Name: ________________________________

Evaluation Criteria Excellent Good Fair PoorIndependenceObjectivity of auditor teamProfessional ProficiencyUnderstanding the business & your departmentTechnical proficiency of audit teamUses technology appropriatelyProfessionalism of audit teamCommunication skills of audit teamInterpersonal skills of audit teamWorks well with your teamHelps you manage and implement changeScope of WorkNotification of the audit purpose and scopeAudit focused on key areas & risksDepartment's concerns and perspective consideredPerformance of Audit WorkDuration of the auditLevel of creativityUsefulness of the auditDisruption of activities was minimalSharing of best practicesFeedback of findings during the auditTimeliness of the audit reportClarity of the audit reportAccuracy of the audit findingsValue of the audit recommendationsProvides workable solutions for audit recommendationsTimely follow-up on corrective action

Improved Declined

In an effort to provide continuous improvement in the service we provide to you and the organization, would you please take a few moments to complete this short survey and return it promptly as indicated below? Thank you!

Not applicable / Don't Know

Improved Significantly

Stayed the same

Declined significantly

How has the quality of service you received changed from previous audits you experienced?

Was there anything about the audit you especially liked?

Name: _____________________________________

Date: ______________________________________

Please return survey to: ________________________

Was there anything about the audit you especially disliked?

Are there any recommendations for improvement that you would like us to consider?

Additional Comments:

Below is a list of resources that may be used during an SDLC audit:

ISACA COBIT 5 Enabling ProcessesCOBIT 5 - Governance and Management Practices Activities (COBIT 5 Toolkit)COBIT 5 for AssuranceSystems Development and Project Management Audit / Assurance Program (based off of COBIT 4.1)

IIAGTAG 12: Auditing IT ProjectsGTAG 14: Auditing User-developed ApplicationsGTAG 5: Managing and Auditing Privacy RisksGTAG 8: Auditing Application ControlsGAIT for Business and IT RiskGAIT for IT General Control Deficiency AssessmentGAIT MethodologyTop 10 System Implementation Audit Considerations (by PwC)

COSO Internal Control -- Integrated Framework

National Institute of Standards and Technology (NIST)SP 800-53 rev.4: Security and Privacy Controls for Federal Information Systems and Organizations.SP 800-64 rev.2: Security Considerations in the System Development Life Cycle

Twenty Critical Security Controls (maintained by Council on Cyber Security)

Project Management Body of Knowledge (aka PMBOK - maintained by Project Management Institute)

AuditNet (subscription based)

Protiviti's Knowledgeleader (subscription based)

Tickmarks

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Documents

141 ISACA NACACS Auditing IT Projects Audit Program