CA - Final : Group II – Information Systems Control and Audit

ICAICA (2006)FINALSyllabus And Recommended Books • Group II – Information Systems Control and Audit

CA :: Final
Group II
Paper 6: Information Systems Control and Audit
[One paper: Three Hours – 100 marks]

Level of Knowledge :

Advanced knowledge.


To gain application ability of necessary controls, laws and standards in computerized Information system.


1.Information Systems Concepts
General Systems Concepts – Nature and types of systems, nature and types of information, attributes of information.
Management Information System – Role of information within business
Business information systems –various types of information systems – TPC, MIS, DSS, EIS, ES
2.Systems Development Life Cycle Methodology
Introduction to SDLC/Basics of SDLC
Requirements analysis and systems design techniques
Strategic considerations : Acquisition decisions and approaches
Software evaluation and selection/development
Alternate development methodologies- RAD, Prototype etc
Hardware evaluation and selection
Systems operations and organization of systems resources
Systems documentation and operation manuals
User procedures, training and end user computing
System testing, assessment, conversion and start-up
Hardware contracts and software licenses
System implementation
Post-implementation review
System maintenance
System safeguards
Brief note on IS Organisation Structure
3.Control objectives
(a)Information Systems Controls
Need for control
Effect of computers on Internal Audit
Responsibility for control – Management, IT, personnel, auditors
Cost effectiveness of control procedure
Control Objectives for Information and related Technology (COBIT)
(b)Information Systems Control Techniques
Control Design: Preventive and detective controls, Computer-dependent control, Audit trails, User Controls (Control balancing, Manual follow up)
Non-computer-dependent (user) controls: Error identification controls, Error investigation controls, Error correction controls, Processing recovery controls
(c)Controls over system selection, acquisition/development
Standards and controls applicable to IS development projects
Developed / acquired systems
Vendor evaluation
Structured analysis and design
Role of IS Auditor in System acquisition/selection
(d)Controls over system implementation
Acceptance testing methodologies
System conversion methodologies
Post implement review
Monitoring, use and measurement
(e)Control over System and program changes
Change management controls
Authorization controls
Documentation controls
Testing and quality controls
Custody, copyright and warranties
Role of IS Auditor in Change Management
(f)Control over Data integrity, privacy and security
Classification of information
Logical access controls
Physical access controls
Environmental controls
Security concepts and techniques – Cryptosystems, Data Encryption Standards (DES), Public Key Cryptography & Firewalls
Data security and public networks
Monitoring and surveillance techniques
Data Privacy
Unauthorised intrusion, hacking, virus control
Role of IS Auditor in Access Control
4.Audit Tests of General and Automated Controls
(a)Introduction to basics of testing (reasons for testing);
(b)Various levels/types of testing such as: (i) Performance testing, (ii) Parallel testing, (iii) Concurrent Audit modules/Embedded audit modules, etc.
5.Risk assessment methodologies and applications:
(a) Meaning of Vulnerabilities, Threats, Risks, Controls, (b) Fraud, error, vandalism, excessive costs, competitive disadvantage, business, interruption, social costs, statutory sanctions, etc. (c) RiskAssessment and Risk Management, (d) Preventive/detective/corrective strategies
6.Transfer pricing
(a) Fundamentals of BCP/DRP, (b) Threat and risk management, (c) Software and data backup techniques, (d) Alternative processing facility arrangements,(e) Disaster recovery procedural plan, (f) Integration with departmental plans, testing and documentation, (g) Insurance
7.An over view of Enterprise Resource Planning (ERP)
8.Information Systems Auditing Standards, guidelines, best practices (BS7799, HIPPA, CMM etc.)
9.Drafting of IS Security Policy, Audit Policy, IS Audit Reporting - a practical perspective
10.Information Technology Act, 2000

Recommended Books