Question: Read the NARRATIVE IT ENVIRONMENT AND CHANGE CONTROL MANAGEMENT PROCESS below. Identify potential findings and list them using a table at the end of this
- Read the NARRATIVE IT ENVIRONMENT AND CHANGE CONTROL MANAGEMENT PROCESS below.
- Identify potential findings and list them using a table at the end of this narrative.
NARRATIVEIT ENVIRONMENT AND CHANGE CONTROL MANAGEMENT PROCESS
The IT audit of client ABC Company is for the fiscal year ended 12/31/2021. In various planning meetings with client/entity personnel, you gathered the following information pertaining to the clients relevant financial applications. These are the applications that will form the scope of this years audit:
- SAPHandles all accounting and general ledger transactions. SAPs server is SapAppServ1, and its operating system (o/s) version is UNIX AIX VX. SAP is classified as a purchased software requiring significant customization. The database supporting SAP is Oracle, with server name SapDbServ1.
- Bill-Inv SystemHandles billing and inventory management. The Bill-Inv Systems server is InfAppServ1, and its o/s version is OS 400 VX. Bill-Inv System is a purchased software with little customization. The database is IBM DB2, with server name InfDbServ1.
- APS2Handles all treasury and investment transactions. The server hosting the application is Aps2AppServ1, and its o/s version is OS400 VX. APS2 is a purchased software requiring significant customization. The database is Oracle, with server name Aps2DbServ1.
- Legacy SystemHandles transactions related to the entitys fixed assets. The Legacy Systems server is LSAppServ1, and its o/s version is Windows VX. The Legacy System is classified as an in-house developed software. The database is proprietary, with server name LSDbServ1.
- KronosHandles employee time and attendance transactions. The Kronoss server is KAppServ1, and its o/s version is Linux VX. Kronos is also classified as an in-house developed software. The database is proprietary, with server name KDbServ1.
- HR&PHandles transactions related to human resources and payroll processing and disbursement. This application is outsourced to a service organization called ADP.
The o/s hosting the applications are the ones hosting the databases. All of the above relevant applications, except for HR&P, are located in the entitys headquarters premises, computer room, first floor, in Melbourne, FL. HR&P is outsourced, meaning that the application, its database and o/s, as well as all related servers are located outside the clients premises. For description of the processes and procedures regarding this outsourced application, refer to the auditors service organization report.
During the fiscal year, there were no significant modifications performed for the Bill-Inv System, Legacy System, Kronos, and HR&P relevant applications. SAP and APS2, however, were significantly upgraded to their current versions in March 1st and November 15th, respectively.
Client ABC Company has three IT-related departments, all reporting to the IT Director. The IT director reports directly to the entitys Chief Financial Officer. The IT departments and their supporting personnel are listed below:
- Infrastructure & Operations (I&O)I&O Manager, Help Desk Supervisor, Trainer & End-User Support, and Network/LAN Administrator
- Application Systems Programs & Support (ASP&S)ASP&S Manager, Software Programmer, Analyst Programmer, and SAP Administrator
- Database and Operating Systems Support (D&OSS)Database Support Specialist and Operating Systems Support Specialist
Purchased
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