You are a member of the audit team engaged in the audit of Bamboo (Pty) Ltd,...

 

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You are a member of the audit team engaged in the audit of Bamboo (Pty) Ltd, a furniture manufacturing company. You have been requested to perform a review of the general controls at Bamboo (Pty) Ltd. As there is no IT steering committee, you have been directed to Ted Timber (financial accountant) and Presiey Pine, the IT manager. The following information is relevant: 1. Data is processed on the company's small mainframe which is located in the IT department. This department is linked to the user departments by on-line terminals. In addition to the main frame there are various other pieces of hardware e.g. print servers. Some of the general IT staff also have their work areas/work stations in the department. 2. To assist in your review, Ted Timber, the financial accountant, arranged for you to obtain his secretary, Sally Meranti's password, should you want to gain access to the system and its various applications. She gave you her user ID and informed you that her password was "SM" and that, as she would be away the next day, you could work at her terminal. 3. Although access to the IT department was controlled by a security key pad, it was not necessary for you to obtain the entry code as, on the day of your visit, the door was held open by the fire extinguisher to enable a stationery company to make a delivery of printer paper. You also noticed that the fire extinguishers nozzle had been removed from the extinguisher and was being used as a flower vase. It had been attractively placed on top of a server. 4. On discussing disaster recovery with Presley Pine, the IT manager, he indicated that a disaster recovery plan was not regarded as necessary as: The size and complexity of the IT facility did not warrant it. • No "disaster" had occurred in the last few years The IT personnel were honest and • He felt that modern day hardware was very reliable 5. In response to your query relating to the use of computer generated logs, Presley Pine was fairly vague and indicated he thought the only logs which may be used were related to specific applications such as Masterfile amendments. 6. IT staff are encouraged to experiment and explore potential improvements to application software, but in their own time. Where programme enhancement changes are needed to effect the improvements, the staff member may implement the improvement but must inform Presley Pine. REQUIRED: Compile a memorandum to the IT manager in which you detail all the weaknesses in general controls at Bamboo (Pty) Ltd in respect of 1.1 Access controls 1.2 Continuity of operations 1.3 Also include suggestions on controls that should be implemented over programme changes. (10) (10) (10) You are a member of the audit team engaged in the audit of Bamboo (Pty) Ltd, a furniture manufacturing company. You have been requested to perform a review of the general controls at Bamboo (Pty) Ltd. As there is no IT steering committee, you have been directed to Ted Timber (financial accountant) and Presiey Pine, the IT manager. The following information is relevant: 1. Data is processed on the company's small mainframe which is located in the IT department. This department is linked to the user departments by on-line terminals. In addition to the main frame there are various other pieces of hardware e.g. print servers. Some of the general IT staff also have their work areas/work stations in the department. 2. To assist in your review, Ted Timber, the financial accountant, arranged for you to obtain his secretary, Sally Meranti's password, should you want to gain access to the system and its various applications. She gave you her user ID and informed you that her password was "SM" and that, as she would be away the next day, you could work at her terminal. 3. Although access to the IT department was controlled by a security key pad, it was not necessary for you to obtain the entry code as, on the day of your visit, the door was held open by the fire extinguisher to enable a stationery company to make a delivery of printer paper. You also noticed that the fire extinguishers nozzle had been removed from the extinguisher and was being used as a flower vase. It had been attractively placed on top of a server. 4. On discussing disaster recovery with Presley Pine, the IT manager, he indicated that a disaster recovery plan was not regarded as necessary as: The size and complexity of the IT facility did not warrant it. • No "disaster" had occurred in the last few years The IT personnel were honest and • He felt that modern day hardware was very reliable 5. In response to your query relating to the use of computer generated logs, Presley Pine was fairly vague and indicated he thought the only logs which may be used were related to specific applications such as Masterfile amendments. 6. IT staff are encouraged to experiment and explore potential improvements to application software, but in their own time. Where programme enhancement changes are needed to effect the improvements, the staff member may implement the improvement but must inform Presley Pine. REQUIRED: Compile a memorandum to the IT manager in which you detail all the weaknesses in general controls at Bamboo (Pty) Ltd in respect of 1.1 Access controls 1.2 Continuity of operations 1.3 Also include suggestions on controls that should be implemented over programme changes. (10) (10) (10)

Answer rating: 100% (QA)

Date September 1st 2021 To Presley Pine IT Manager From Auditor General Business Control CC Ted Timber Financial Accountant Subject Audit report on weakness in general IT control and related process f... View the full answer