IT auditing in practice Marc Verdonk Eindhoven, November 27 th 2008

- 1 - Agenda Introduction Typical activities Client case OnLine Auditing Tool

Introduction - Background Education  Computer Science, Utrecht University (M.Sc) Thesis: Continuous Assurance  Post master IT auditing, VU Amsterdam (RE)  Certified Information System Auditors (CISA)  Certified Information System Security Professional (CISSP) Work  Deloitte Enterprise Risk Services  Senior Manager  Consumer Business Industry, but seen most industries over past few years … and of course AIO at TU/e

The two lies of the profession....

Typical activities  Audit / Assurance:  Integrated Audit  Internal Audit  Operational Audit  Project Audit / Quality Assurance  Pré- or post implementation review  Special audit assignments  Advise / Implementation  Security & Controls  Identity Management  Risk Management  Governance, Risk and Compliance ……  Forensic – fraud detection

- 5 - Agenda Introduction Typical activities Client case OnLine Auditing Tool

`Client Case – Our Assignment  Integrated Audit  Financial Auditor & IT Auditor  IT auditor provides assurances to financial auditor  Financial auditor provides assurance to the clients’ stakeholders  Standard question of the financial auditor to the IT auditor: Can we rely on the information processed in the clients’ systems?  Why do they ask this question?  After we answered this questions, there may be additional questions

`Client Case – Description of the Client Business Perspective  Consumer Business – Food sector  Many strong brands  Annual turnover € 8Bn  Multinational,  Headquarter in The Netherlands  Strong in Europe, Middle East, Africa (EMEA) and Asia Pacific (APAC)  Local market strategy translated into a ‘decentral, unless…’-policy  Organized in a corporate organization and many Operating Companies (OpCo) with different product and market focus.

`Client Case – Description of the Client IT perspective  Highly automated processes, complex landscape  IT classification: dominant  Main ERP: SAP  Corporate ICT  Shared ICT  The Netherlands (100 fte) SAP EMEA, Global infrastructure operations  Thailand (20 fte): SAP APAC  Getronics/KPN providing hosting services for all IT  Business Information Managers at the OpCo level  Customer Council: organize supply and demand

`Client Case – Scoping Going back to the initial question: Can we rely on the information processed in the clients’ systems? 1.Understand which information is relevant for the financial auditors’ scope Balance Sheet / Profit & Loss Materiality 2.Determine systems in scope SAP and HR system (outsourced) 3.Determine landscape SAP Oracle Database Unix server Network infrastructure

`Client Case – Phased Approach Start with audit of the General Computer Controls (GCC) Operations Information Security Change Management Audit selected Application Controls

`Client Case – General Computer Controls Audit of the General Computer Controls (GCC) Operations Information Security Change Management 1.Create control framework and tailor to specific situation 2.Perform tests of Design and Implementation techniques: review documentation, interviews, perform walkthroughs 3.Perform tests of Operating Effectiveness techniques: systematic sampling 4.Document findings, factual approval, judgment  go / no go decision

`Client Case –General Computer Controls – Typical Findings In general: No policies available Processes and procedures not documented Information security Uncontrolled use of super users, administrators, developers Default passwords External parties on system Group policies override for individual users Failing user provisioning Change management Testing of changes Changes processed directly in production Lack of impact analysis Operations: Testing of backup and restore

`Client Case – Application Controls Relevance for audit if GCC’s are unreliable?

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