1. MULTIPLE CHOICE
1. D
2. D
2. problems
1. SERVICE PROVIDER AUDIT — The Harvey Manufacturing Company
Explain how the Harvey Manufacturing auditors will assess the relevant
Or,
Carve-out Method.
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Inclusive Method.
2. INTERNAL CONTROL – Howard Industries
a) Identify and explain any control concerns you have with the new
operations.
b) What potential computer fraud might this operational approach permit?
a)
b)
Possible Frauds include:
Program Fraud. This includes the following (1) creating illegal programs that
can access data files to alter, delete, or insert values into accounting records;
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Operations fraud. This is the misuse or theft of the firm’s computer
Reconciliation responsibility combined with the processing access, and
3. DISTRIBUTED DATA PROCESSING
a. When setting systems standards in a distributed processing environment,
discuss the pertinent factors about:
1. Computer hardware factors that need to be considered include:
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2. Controls considerations include:
b. The benefits of having standardized hardware and software include:
c. The memorandum is likely to create the following concerns:
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4. INTERNAL CONTROL
Compensating controls that Gustave most likely found include:
5. DISASTER RECOVERY PLANNING CONTROVERSY
1) Argument against auditing DRP
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2) Argument supporting DRP audit
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6. SEPARATION OF DUTIES
Since the employee will have performed several highly incompatible tasks, this
company needs to employ strong password access controls and constantly
require their employees to change their passwords, especially since they have
7. DISASTER RECOVERY SERVICE PROVIDERS
SunGard separates its recovery services into three groups: high availability,
systems recovery, and end-user recovery. Each contains specific services
The goal of high availability is to ensure the
ongoing availability of information, to eliminate exposure to lost information, to
reduce overall business risk, and to help ensure that the revenue stream will
stay intact. Many companies rely on redundant storage to ensure the
availability of information under uncertainty. If data is damaged or erased, the
company can use the backup information to recover lost records and continue
normal processing. The problem that exists is that many firms’ process and
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System recovery focuses on recovering
mainframe and/or distributed systems quickly and efficiently. To do this,
SunGard provides specialized teams of up to 2,000 technicians working around
the clock to get clients’ systems running properly. These teams use a process
called Silhouette OS to understand and repair individual systems. Silhouette
End-user recovery is dedicated to maintain employee
productivity until systems are repaired and functional. One technique used is to
provide a disaster recovery center. These centers provide fully furnished
workstations, high-speed Internet access, all necessary hardware and software, and
communication devices for the clients’ use. Each center is secure and maintains a
8. PHYSICAL SECURITY OF DATA CENTER — Big Apple Financials, Inc.,
a. Security over physical environment includes:
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b. 6 Control Features
1. Physical Location:
2. Construction:
3. Limited Access to operators and authorized employees
4. Air Conditioning: Computers operate best in a temperature range of 70 to
5. Fire Suppression:
6. Fault Tolerance Controls:
c. Options to reduce operating costs
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