Question $1$:

Based on ONLY the content written in this case:

a$)$ As an experience IS Auditor accredited by ISACA, identify actions within the

company that go against the ISACA Framework. Please explain the $3$ most

relevant threats according to the business impact.

b$)$ Based on what you have identified in a$),$ what are the risks involved?

c$)$ According to the ISACA Framework, what should be done instead?

Question $2$:

Based on the entire case $($both Assignments $1$ and $2)$:

a$)$ What could be the key risks associated with the developer$/$system development

process of the online store system? Explain according to Kawaii Paws $$s case.

b$)$ Suggest $2$ important input controls and $1$ output control which can apply to the

new online store system $$PetQ$$

$.$ Why do you think each of them is important?

c$)$ Given that it is now decided to replace the old online store system with $$PetQ$$

$,$

based on what you have learnt, what would be the appropriate changeover

techniques? Please discuss the important factors the company needs to consider

when choosing the changeover technique and justify your answer.

d$)$ What are the risks involved in adopting the changeover technique in c$)$ for

$$PetQ$?$ Suggest one preventive, one detective and one corrective control for

the changeover technique related to the risks identified. Explain briefly how they

can be effective to control the risks.

e$)$ After the system being implemented, when, who and how should a post$-$

implement review be performed for this system? Justify your answer.$($The case is designed for teaching purpose ONLY. All content from the case in Assignment $1$ is applicable here.$)$

Kawaii Paws Inc.$($con$\text{'}$t$)$

The company after acquisition

Jenny's new business idea would cost her a lot that she needs to liquidize her share in Kawaii

Paws to continue. To speed up the entire process, Jenny is now willing to sell her shares in

Kawaii Paws to Global Pet Food Inc. at a discount of $12\mathrm{.}5\%$ of the current deal if Global Pet

Food Inc. is willing to conclude the deal within a week.

With only one week left, there will not be enough time to conduct the IT due diligence

exercise. However, the CEO of Global Pet Food Inc., Matthew, is facing strong pressure from

the board of directors to secure the deal as soon as possible. Matthew decided to conduct

the risk analysis after the acquisition.

Easy$-$Get IT Solutions $($EGIT$)$ Inc.

Founded in $2008,$ during the financial tsunami, the CEO of Remote$-$ Easy$-$Get IT Solutions

$($EGIT$)$ Inc., Chuck, along with his $11$ staff, provides IT support services to local SMEs and

online Store system to local retailers.

Deployed in $2014,$ the online Store system is the most valuable product of EGIT, adopted

by $20$ different companies in Hong Kong. The profit is mainly from the one$-$off installation

fee plus a monthly subscription of maintenance services including a total of $($i$)10$ hours

telephone support service; $($ii$)$ monthly, remote data back service; and $($iii$)$ regular security

updates.

Besides the basic functions, EGIT also provides services for customization, e$.$g$.$ feature

enhancements, UI design, etc. at a separate charge, although only three clients so far have

chosen to upgrade it$.$

Review of online Store System

BASE IS Auditing Ltd$.,$ a globally well$-$known IS auditing firm $($p$.$s$.$ there is no relationship

between this auditing firm and Kawaii Paws Inc.$),$ hired by Global Pet Food Inc., conducted

an IS audit exercise right after the successful acquisition of Kawaii Paws.

During the review, it was found that the only copy of all the data was stored in an

unencrypted MSSQL database with everyone using the same administrator account and

password to access the database.

ISOM$4300$ Spring $2023-2024$

After reviewing the online Store system and the Kawaii Paws's online business flow, BASE

IS Auditing suggested Global Pet Food Inc. consider the possibility of replacing the current

online store system with a more secure one.

Global Pet Food Inc.

As a global food provider, Global Pet Food Inc. is strong at the back$-$end side of information

technology, but not too much on the front$-$end side to conduct business. Global Pet Food

Inc. had been a client of EGIT as well to provide fundamental IT supports services, including

all the PCs$,$ notebooks, IP phones and servers for many years.

The Chief Technology Officer of Global Pet Food Inc., Tim, a technical person with an

Undergraduate and Master in Computer Science, was one of the co$-$founders of Global Pet

Food Inc. and he is the head of all IT$-$related departments in Global Pet Food Inc.

The CEO of Global Pet Food Inc., Matthew, has appointed Tim as his successor to CEO who

would like to shift its business focus to the online market. But this cannot be achieved unless

Tim becomes the CEO and the current business model and technical expertise for Global

Pet Food Inc. does not meet the requirements.

Online Store System

As an experienced and enthusiastic programmer, Tim decided to develop an entirely new

online store system from scratch to replace the e