1. Application Controls - Intro Ted Wallerstedt, CISA, CIA Principal Information Systems Auditor University of Minnesota

2. Application Controls - Agenda Introduction 9:00 Input Controls 9:05 Interface Controls 9:35 Break10:05 Access Controls10:10 Audit Trails10:50

3. Introduction Why audit applications?

4. Application Risks - STRIDE Spoofing Identity Tampering with data Repudiation Information Disclosure Denial of Service Elevation of Priveldges

5. Application Security – Input & Interface Controls Quinn Gaalswyk, CISA Senior Information Systems Auditor University of Minnesota

6. Application Input Controls Controls imbedded in the application Used to control functional/business transactions Prevent or detect data integrity issues # 1 REVIEW AND EVALUATE DATA INPUT CONTROLS

7. Application Input Control Types - Edits Prevent input from being entered that may cause data-integrity problems

8. 10 Common Input Edits 1.Numeric - alphanumeric restrictions 2.Dates and hour fields set to convert input into the correct format

9. 10 Common Input Edits 3.Transaction "reasonableness" checks on inputs

10. 10 Common Input Edits 4.Limited input fields prevent invalid entries –E.g. Drop Down Lists 5.Duplicate entries not allowed for data that is to be unique 6.“Logic" checks –E.g. Parts Not Greater than Sum

11. 10 Common Input Edits 7. “Calculation" checks on inputs

12. 10 Common Input Edits 8.Programmed cutoff dates –E.g. preventing wrong period inputs 9.Execution of a transaction not allowed until valid data entered into all required fields 10.Database operatives disallowed –E.g. * or =

13. Application Input Control Types – Error/Exception Reports Detects data inputted that may cause data- integrity problems Push vs. Pull Reports Input is not or cannot be prevented by edits #2 DETERMINE THE NEED FOR ERROR/EXCEPTION REPORTS RELATED TO DATA INTEGRITY, AND EVALUATE WHETHER THIS NEED HAS BEEN FULFILLED.

14. Error/Exception Report Considerations Who is reviewing the log? –Confirm review documentation What activity/data is logged? –Log Size –Reviewing Time

15. Application Input Control Auditing Automated (application) controls: confirm operating effectively –Test data –Sample of one Reports: confirm creation and review –Test generation as automated (application) control –Larger sample of report reviews – Email or written confirmation

16. Group Activity – Identify Expected Edits and Report Controls

17. Scenario: Edits & Reports Testing eChecks AR/AP Application What edits or reports would you expect to see?

18. Scenario: Edits & Reports Testing eChecks AR/AP Application What are the top controls you want to test?

19. Interface Controls Defined Controls ensuring proper transfer of data between systems Controls around both source and downstream systems #3 REVIEW AND EVALUATE THE CONTROLS IN PLACE OVER DATA FEEDS TO AND FROM INTERFACING SYSTEMS.

20. Common Interface Types 1.Automated interface –Batch Processing (i.e. automated jobs) –Manual kickoff 2.Manual - Typing Interface

21. Automated Interface - Batch Processing Multiple places batches/jobs can be ran from: –Separate shared job scheduler E.g. Autosys –Operating system Cron jobs –Database SQL Agent tool –Application directly

22. Automated Batch Components Batch/Job schedules –List of what jobs will run when –May include automated and manual Job dependencies Operator access (if applicable) Job managing software (if separate)

23. Auditing Automated Batches Access to batch schedules Batch schedule change procedures Batch dependencies noted Notifications if automated job abends –Confirm operator call list/operator monitoring –Confirm call is automated

24. Common Interface Controls 1.Transfer Failure Notification/Reporting –Timely and to appropriate individuals 2.Control totals and accompanying reporting –Record Counts –Total Amounts –Hash Totals

25. Common Interface Controls 3.Header Footer Checks –Interchange Control Envelope ISA - IEA 4.Reconciliation reports –Review of control totals and/or discrepancies

26. Common Interface Controls 5.Transfers should be secured throughout process –Corruption and viewing –Source system security –File creation and storage –Network security

27. Common Interface Controls 6.Input controls into the system where valid – interface edit –Example: duplicate transaction flag review or prevent for a credit card company

28. Interface Synchronization Data synchronization if multiple sets stored Determine source of truth Review synchronization process and test data #4 IN CASES WHERE THE SAME DATA ARE KEPT IN MULTIPLE DATABASES AND/OR SYSTEMS, PERIODIC 'SYNC' PROCESSES SHOULD BE EXECUTED TO DETECT ANY INCONSISTENCIES IN THE DATA.

29. Interface Example

30. Application Security – Audit Trails Quinn Gaalswyk, CISA Senior Information Systems Auditor University of Minnesota

31. Application Audit Trails Value Show detail of end user activity –Troubleshooting –Identify breaches –Prevent repudiation #5 REVIEW AND EVALUATE THE AUDIT TRAILS PRESENT IN THE SYSTEM AND THE CONTROLS OVER THOSE AUDIT TRAILS.

32. Auditing Application Audit Trails Obtain sample evidence of the audit trail and review End users and developers cannot edit the audit trail –Users MAY view –Stored on DB or OS Pragmatic and useful –Expensive

33. Data Flow Traceability Data should be traceable through the entire system Confirm via audit trail and related controls #6 THE SYSTEM SHOULD PROVIDE A MEANS TO TRACE A TRANSACTION OR PIECE OF DATA FROM THE BEGINNING TO THE END OF THE PROCESS ENABLED BY THE SYSTEM.

34. Application Audit Trail Example

35. Application Controls – Access Controls Ted Wallerstedt, CISA, CIA Principal Information Systems Auditor University of Minnesota

36. Authentication – Who are you? #7. DOES AN AUTHENTICATION METHOD EXIST? What are some ways that users can be authenticated?

37. Authentication – Who are you? Passwords Multifactor Single Sign on –Log on to OS –Log on to CAH –Lon on to TFA server

38. Passwords #12. ARE THERE STRONG PASSWORD CONTROLS IN PLACE? What password controls do you expect to find?

39. Password Controls Length Complexity Change Interval History

40. UMN Password Standard Password must be used for all devices 8 or more characters long Changed at least annually Must be complex A minimum of three types of characters Account lockout required Do not share passwords

41. Activity - Passwords You have received evidence of the password settings for the application. Based on the evidence: Does the Bookstore application meet UMN password standards? What questions do you have of the admin?

43. Application Administration Add/Delete users/groups Change users/groups Audit trail Reporting #9. IS THE ADMIN FUNCTION ADEQUATE?

44. User Provisioning Add/Delete users/groups Change users/groups Audit trail Reporting #13. IS BUSINESS NEED VERIFIED BEFORE ACCESS IS GRANTED?

45. User De-Provisioning User quits or is fired User changes jobs User goes on leave #11. ARE RIGHTS REMOVED WHEN NO LONGER NEEDED?

46. Authorization – What are you allowed to do? Access Data (Read/Write) Access Transactions (Execute) Read (Display/Print/Copy) Write (Create/Modify/Delete) #8. IS AUTHENTICATION AND AUTHORIZATION REQUIRED FOR ACCESS?

47. Transaction Approval EXAMPLES - Transactions limited by dollar amount Access requests Move to production Record of review #10. IS THERE TRANSACTION APPROVAL IN THE APPLICATION?

48. Session Timeout Password protected screen savers Required by UMN for HIPAA data 30 minutes or less #14. ARE USERS LOGGED OUT WHEN INACTIVE?

49. Data Encryption HTTPS/SSL PKI Whole Disk Record/field level #15. IS DATA PROTECTED IN TRANSIT AND AT REST?

50. Developer Access Segregation of Duties Unauthorized changes Disruption of service Unauthorized transactions #16. CAN DEVELOPERS CHANGE PRODUCTION SYSTEMS?

51. Activity – User Rights You have requested a list of users and roles for the application. Based on the evidence: What issues do you have with the access list? What questions do you have of the admin?