What are typical transactions found in each business cycle?

- Revenue Cycle

-Expenditure Cycle

-Human Resources/Payroll Cycle

Revnue Cycle - recieve/answer customer inquiries, take customer orders and enter them in AIS, approve credit sales, check inventory availablility

Expenditure Cycle- Request goods and services purchased, prepare, approve, and send purchase orders to vendors, store goods, recieve vendor invoices

Human Resources/Payroll - Recruit, hire, and train new employees, discharge employees, update payroll records, collect and validate time, attendace, and commission data, prepare and disburse payroll

What are typical transactions found in each business cycle?

- Production Cycle

- Financing Cycle

Production Cycle- Design products, forecast, plan, and schedule production, request raw materials for production, store finished products

Financing Cycle- Forecaset cash needs, Sell stock/securities to investors, Borrow money from lenders, pay dividends to investors and interest to lenders

Contain the initial record of a transaction that takes place.

Examples, which are usually recorded on preprinted forms, include sales invoices, purchase orders, and employee time cards.

Records of company data sent to an external party and then returned to the system as input.

Prepared in machine-readable form to facilitate their subsequent processing as input records.

Example: utility bill that is sent to the customer, returned with the customer's payment, and read by a special scanning device when it is returned.

Devices that capture transaction data in machine-readable form at the time and place of their origin.

Examples include ATMs used by banks, point-of-sale (POS), scanners used in retail stores, and bar code scanners used in warehouses.

Batch Processing- Periodic updating of data

-legacy method still used for things like payroll that naturally occur at fixed time periods

-disadvantage- stored data are only current and accurate immediately after the periodic batch updating process

Online, Real-Time Processsing- updating as each transaction occurs

- advantages- more accurate because the system can refuse incomplete or erraneous entries, errors can easily be corrected, ensures that it is always current, thereby increasing its usefulness for making decisions

Creating - adding new data records, such as adding a new emploee to the payroll master file or database after they have been hired

Reading - retrieving or viewing existing data

Updating - data previously stored about the activity, the resources affected b the activity, or the people who performed the activity

Deleting data, such as purging the vendor master file of all vendors that the company no longer does business with

-Each account number is usually 3 digits long, each serving a specific purpose

     -First digit- represents the major account categories as they appear on financial statements (current assets, noncurrent assets, liabilities, equity accounts, revnues, expenses, and summary accounts)

     -Second Digit- represents the primary financial subaccounts withineach category (match the order of their apprearance in financial statemens)

     -Third Digit- identifies the specific account to which the transaction data will be posted.

Vary, depending on the nature/purpose of the organization is represents (i.e. partnership will have seperate captial/drawing)

Opportunity is the condition or situation that allows a person or organization to do three things:

`1.  Commit the fraud.

(theft of assets, such as cash, inventory, tools, supplies, info, and computer time and services, financial reporting consists of the overstatement of assets or revenues, the understatement of liabilities, or failure to disclose info)

2.  Conceal the fraud. (charge to an expense account, using a lapping scheme (Panzi scheme), usuing a kiting scheme (taking advantage of check lagging time)

3.  Convert the theft or misrepresentation to personal gain.

Examples that give opportunity:  failure to enforce internal controls, no audit trails, too much trust in key employees, large, unusual, or complex transactions, nuumerous adjusting entries at year-end, accounting department understaffed and overworked, failure to teach/stress corporate honesty

Pressure- a person's incentive or motivation for committing fraud.

3 Types:

1. Misappropriation of assets (employee fraud)

-living beyond ones means, having heavy financial losses, or high personal debt

2.  Relates to the emotional feelings or problems of employee

-greed, resentment towards company, feel pay is too low or getting taken advantage of)

3.  Person's lifestyle

-support gambling habit, support an addition, keep up pace with other people financially

Rationalization- allows perpetrators to justify their illegal behavior

     -justification of one's actions

     -lack of personal integrity

         -"I am only borrowing the money and will repay it"

         -"You would understand if you knew how much I need it"

-"What I did was not that serious"

            -"No one will ever know."

1.  Internal Environment

2.  Objective Settings

3.  Event Identification

4.  Risk Assessment

5.  Risk response

6.  Control Activities

7.  Information and Communication

8.  Monitoring

This is the tone or culture of a company and helps determine how risk conscious employees are.  It is the foundation for all other ERM components, providing discipline and structure.  It is essentially the same thing as the control environment in ther internal control integrated framework.

1.  Management's philosophy, operating style, and risk appetite

2.  The board of directors

3.  Commitment to integrity, ethical values, and competence

4.  Organizational structure

5.  Methods of assigning authority and responsiblity

6.  Human resource standards

7.  External influences

External

    -Economic

    -Natural Environment

    -Political

    -Social

    -Technological

Internal

    -Infrastructure

    -Personnel

    -Process

    -Technology

- Use comprehensive lists of potential events

- Perform an internal analysis

- Monitor leading events and trigger points

- Conduct workshops and interviews

- Perform data mining and analysis

-Analyze business processes

Inherent Risk

Residual Risk

Inherent Risk - the risk that exists before management takes any steps to control the likelihood or impact of a risk

Residual Risk - the risk that remains after management implements internal controls, or some other response to risk

1. Reduce - most effect way to reduce the likelhood and impace of risk is to implement an effective system of internal controls

2.  Accept - accept the likelihood and impact of the risk by not acting to prevent or mitigate it

3.  Share- Share some of the risk or transfer it to someone else (buy insurance, outsource an activity, enter into hedging transactions)

4.   Avoid-  Risk is avoided by not engaging in the activity that produces the risk.  (sell a division, exit a product line, or not expand as anticipated)

1.  Proper authorization of transactions and activities

2.  Segregation of Duties

3.  Project Ddevelopment and acquisition controls

4.  Change management controls

5.  Design and use of documents and records

6.  Safeguarding assets, records, and data

7.  Independent checks on performance.

Authorization- approving transactions and decisions

Recording- preparing source documents, entering data into online systems, maintaining journals, ledgers, files or databases, preparing reconcilations, and preparing performance reports.

Custody- handling chas, tools, inventory, or fixed assets; receiving incoming customer checks, writing checks on the organization's bank account.

To remain effective, ERM processes must be monitored on an ongoing basis and modified as needed.  Monitoring is accomplished with ongoing management activities and separate evaluations.  Deficiencies in ERM processes are reported to management.

Operations

Reporting

Compliance

On-going Basis- (part of normal routine)- monitoring systems, responibility accounting, effective supervision, fraud detection software, fraud hotline

One-Time Evaluations- "fresh" pair of eyes, internal auditors, engage forensic assessment, critical self-assessment

COSO originally examined controls without first examining the purposes and risks of business processes provides little context for evaluating the results, making it hard to know which control sysems are most important, whether they adequately deal with risk, and whether important control systems are missing.  Focusing on controls first also causes gias toward past problems and concerns.  Long-standing internal control systems often have multiple layers of controls to protect against things that are no longer risks or are no longer important.

COSO recognized this and developed the more comprehensive ERM framework, which takes a risk-based, rather than a controls-based, approach to the organization that is orientated towards the future and constant change.  It is more comprehensive, and includes three additional elements: setting objectives, identifying positive and negative events that may affect the company's ability to implement its strategy and achieve those objectives, and developing a response to assessed risk.  As a result, controls are flexible and relevant b/c they are linked to current objectives.

Also, ERM model recognizes that risk, in addition to being controlled, can be accepted, avoided, diversified, shared, or transferred.

One must analyze whether or not the benefits exceed the costs of the internal control.

It's hard sometimes to quantify, especially when its things such as increased sales and productivity, reduced losses, better integration with customers and suppliers, increased customer loyalty, competitive advantages, and lower insurance premiums.

Costs are usually easier to measure than benefits (because they are number based).  Usually it refers to personal, including the time to perform control procedures, the costs of hiring additional employees to follow segregation of duties, etc.

Most use the Expected Loss equation to help.

Expect Loss = Impact x Likelihood

The value of a control procedure is the difference between the expected loss with the control procedure(s) and expected loss without it.

Sometimes use graph to compare impact and likelihood.

1.  Systems Administration- responsible for ensuring that the different parts of an information system operate smoothly and efficiently.

2.  Network Managers- snsure that all applicable devices are linked to the organization's internal and external networks and that the neworks operate continuously and properly

3.  Security Management- ensures that all aspects of the system are secure and protected from all internal and external threats.

4.  Change Management- These individuals manage all changes to an organization's information system to ensure they are made smoothly and efficiently and to prevent errors and fraud.

5.  Users- record transactions, authorize data to be processed, and use system output

6.  Systems analysis- helps users determine their information needs and then design an information system to meet those needs

7.  Programmers tak ethe design proveded by systems analysts and create an information system by writing the computer programs.

8.  Computer operations- run the software on the company's computers.  They ensure that data are input properly and correctly processed and needed output is produced.

9.  Information system library- maintains custody of corporate databases, files, and programs

10.  Data control- ensures that source data have been properly approved, monitors the flow of work through the computer, reconciles input and output, maintains a record of input errors to ensure their correction and resubmission, and distributes systems output.

deter problems before they arise

ex.  hiring qualified personnel, appropriately segreating employee duties, and effectively controlling physical access to assets,

Needed to discover problems as soon as they arise

ex. duplicate checking of calculations and preparing bank reconciliations and monthly trial balances

remedy control problems that have been discovered.  They include procedures taken to identify the cause of a problem, corect resultuing errors or difficultues, and modify the system so that future problems are minimized and eliminated.

ex. maintain backup copies, adhering to procedures to correct data entries

designed to make sure an organization's control environment is stable and well managed.

Ex. information systems management controls, security management controls, IT infrastructure controls, and software aquisition, development, and maintenance control.

Focuses specifically on five aspects of information systems controls and governance that most directly pertain to systems reliability:

1.  Security- access to the system and its data is controlled and restricted to legitimate users.

2.  Confidentiality- sensitive organization information (e.g., marketing plans, trade secrets, etc.) is protected from unauthorized disclosure.

3.  Privacy- personal information about customers is collected, used, disclosed and maintained only in compliance with internal policies and external regulatory requirements.

4.  Processing Integrity- data is processed accurately, completely, in a timely manner, and only with proper authorization.

5.  Availability- the system and its information is available to meet operational and contractual obligations.

It is not a substitute for COBIT, b/c it only addresses a subset of the issues by COBIT, but it provides a useful means for consolidating COBIT's control objectives to focus on a specific of IT governance that has become relevant because of SOX: systems reliablility.

1.  Developing and documenting policies.

2.  Effectively communicating policies to all authorized users.

3.  Designing and employing appropriate control procedures to implement policies.

4.  Monitoring the system and taking corrective action to maintain compliance with policies.

Provides comprehensive guidance for effectively controlling and managing information systems.

Seven criterias:

     1.  Effectiveness- the information must be relevant and timely.

     2.  Efficiency- the information must be produced in a cost-effective manner.

     3.  Confidentiality-  sensitive information must be protected from unauthorized disclosure.

     4.  Integrity- the information must be accurate, complete, and valid.

     5.  Availability- the information must be available whenever needed.

     6.  Compliance-  controls must ensure compliance with internal policies and with external legal and regulatory requirements.

     7.  Reliability- management must have access to appropriate information needed to conduct daily activities and to exercise its fiduciary and governance responsibilities

1.  Plan and Organize

2.  Acquire and Implement

3.  Deliver and Support

4.  Monitor and Evaluate

Also, 34 processes and 100+detailed objectives.

focuses on the relationship between preventitive, detective, and corrective controls.

It evaluates the effectiveness of an organization's security by measuring and comparing the relationship among the following three variables:

P= the time it takes an atacker to break through the organization's preventitive controls

D = the time it takes to detect that an attack is in progress

C = the time it takes to respond to the attack

If P > D + C, then the organization's security procedures are effective.

focueses on verifying the identity of the person or device attempting to access the system.

Can be authenticated by verifying:

1.  Something you know (passwords)

2.  Something you have (ID cards)

3. Some physical characteristic

Uses two keys, one public and one private

Either the public or private key can be used to encrypt, but only the other key can decrypt the ciphertext

process that takes plaintext of any length and transforms it into a short code called a hash

differs from encryption in two important aspects

1.  encryption always produces ciphertext similar in length to the original plaintext, but hasing always produces a hash that is of a fixed short length, regardless of the length of the original plaintext

2. Encryption is reversible, hashing is not b/c it throws away information

responsible for dealing with major incidents

Recognize, Contain, Recover, and Follow up on major incidents

Uses two keys

One key, the public key, is widely distributed and available to everyone, the other key, the private key, is kept secret and known only to the owner of the pair of keys.  Either the public or private key can be used to encrypt, but only the other key can decrypt the ciphertext.

Original Text-> Encrypt with Public Key->Decrypt with Private Key-> Original Text

or

Original Text->Encrypt with Private Key->Decrypt with Public Key->Original Text

Uses the same key both to encrypt and decrypt.

Key must be kept secret.

1.  Forms design (how forms are designed so you don't forget info)

2.  Cancellation and storage of documents

3.  Authorization and segregation of duties.

4.  Visual scanning

summarize key values for a batch of input records should be calculated

Three commonly used batched totals:

1. Financial Total- sums a field that contains dollar values, such as the total dollar amount of all sales for a batch of sales transactions

2.  Hash total- sums a nonfinancial numeric field, such as the total of the quantity ordered field in a batch of sales transactions.

3. Record Count- sums the number of records in a batch

Data Matching- two or more items of data must match before an action can take place

File Labels- need to be checked to ensure that the correct and most current files are being updated (both internal, which are readable by machine, and external, which are read my humans)

    -header record- internal label - located at the beginning of each file and contains the file name, expiration date, and other identification data

    -trailer record- internal label- located at the end of the file and ocntains the batch totals calculated during input

Recalculation of batch totals-  batch totals can be recomputed as each transaction record is processed and compared to the values in the trailer record

    -if a financial or hash total discrpancy is evenly divisible by 9, the likely cause is a transposition error, in which two adjacent digits were inadvertly reversed

Write-protection mechanisms- protect against the accidental writing over or erasing of data files stored on magnetic media

Database processing integrity procedures - database administrators, data dictionaries, and concurrent update controls to ensure processing inteigrity. 

   -The administrator establishes and enforces procedures for accessing and updating the database. 

   -The data dictionary ensures that data items are defined and used consistently. 

    -Concurrent update controls protect records from eerors that occur when two or more users atempt to update the same record simultaneously.

User review of output – Users should carefully examine system output for reasonableness, completeness, and that they are the intended recipient.

Reconciliation Procedures – Periodically, all transactions and other system updates should be reconciled to control reports, file status/ update reports, or other control mechanisms.  In addition, general ledger accounts hsould be reconciled to subsidiary account totals on a regular basis.

External Data Reconciliation – Database totals should be periodically be reconciled with data maintained outside the system. Ex: The number of employee records in the payroll file can be compared with the total from human resources to detect attempts to add fictitious employees to payroll database.

Computers represent characters as a set of binary digits (bits).  When data are transmitted, some bits mayb e lost or received incorrectly due to media disruptions or failures.

To detect them, an extra digit, called a parity bit, is added to every character

1.  Echo Check - when data are transmitted, the system calculates a summary statistic as the number of bits in the message, the recieving unit performs the same calculation, and sends the results ot the sending unit, if the counts agree, the transmission was accurate

2.  Trailer Record- the sending unit stores control totals in a trailer record.  The receiving unit uses that info to verify that the entire message was recieved.

3.  Numbered Batches-  if a large message is transmitted in segments, each can be numbered sequentially so that the receiving unit can properly assemble the segments

<!-- /* Font Definitions */ @font-face {font-family:Wingdings; panose-1:5 0 0 0 0 0 0 0 0 0; mso-font-charset:2; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:0 268435456 0 0 -2147483648 0;} @font-face {font-family:Tahoma; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:1627421319 -2147483648 8 0 66047 0;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1610611985 1073750139 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin-top:0in; margin-right:0in; margin-bottom:10.0pt; margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:Calibri; mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} p.NoSpacing, li.NoSpacing, div.NoSpacing {mso-style-name:"No Spacing"; mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:Calibri; mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} p.BalloonText, li.BalloonText, div.BalloonText {mso-style-name:"Balloon Text"; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:8.0pt; font-family:Tahoma; mso-fareast-font-family:"Times New Roman";} span.BalloonTextChar {mso-style-name:"Balloon Text Char"; mso-ansi-font-size:8.0pt; mso-bidi-font-size:8.0pt; mso-ascii-font-family:Tahoma; mso-hansi-font-family:Tahoma; mso-bidi-font-family:Tahoma;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} /* List Definitions */ @list l0 {mso-list-id:54283976; mso-list-type:hybrid; mso-list-template-ids:63474920 -2100392014 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l0:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman";} @list l0:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l0:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l0:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l0:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l0:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l0:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l0:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l0:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l1 {mso-list-id:579024884; mso-list-type:hybrid; mso-list-template-ids:-1367286048 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;} @list l1:level1 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol; mso-bidi-font-family:"Times New Roman";} @list l1:level2 {mso-level-number-format:bullet; mso-level-text:o; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:"Courier New";} @list l1:level3 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Wingdings; mso-bidi-font-family:"Times New Roman";} @list l1:level4 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol; mso-bidi-font-family:"Times New Roman";} @list l1:level5 {mso-level-number-format:bullet; mso-level-text:o; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:"Courier New";} @list l1:level6 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Wingdings; mso-bidi-font-family:"Times New Roman";} @list l1:level7 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol; mso-bidi-font-family:"Times New Roman";} @list l1:level8 {mso-level-number-format:bullet; mso-level-text:o; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:"Courier New";} @list l1:level9 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Wingdings; mso-bidi-font-family:"Times New Roman";} @list l2 {mso-list-id:614215761; mso-list-type:hybrid; mso-list-template-ids:-306543040 -1350785542 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l2:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman"; mso-ansi-font-weight:bold;} @list l2:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l2:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l2:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l2:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l2:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l2:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l2:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l2:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l3 {mso-list-id:620956346; mso-list-type:hybrid; mso-list-template-ids:1481438028 -1167151872 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l3:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman"; mso-ansi-font-weight:bold;} @list l3:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l3:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l3:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l3:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l3:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l3:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l3:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l3:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l4 {mso-list-id:691104138; mso-list-type:hybrid; mso-list-template-ids:-232521098 -1536258726 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l4:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman"; mso-ansi-font-weight:bold;} @list l4:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l4:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l4:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l4:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l4:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l4:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l4:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l4:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l5 {mso-list-id:1141581473; mso-list-type:hybrid; mso-list-template-ids:-1749796394 300043722 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l5:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman";} @list l5:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l5:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l5:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l5:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l5:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l5:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l5:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l5:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l6 {mso-list-id:1310475226; mso-list-type:hybrid; mso-list-template-ids:-856016296 -1214333166 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l6:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman"; mso-ansi-font-weight:bold;} @list l6:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l6:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l6:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l6:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l6:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l6:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l6:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l6:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l7 {mso-list-id:1571767757; mso-list-type:hybrid; mso-list-template-ids:1714461740 -615118722 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l7:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman"; mso-ansi-font-weight:bold;} @list l7:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l7:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l7:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l7:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l7:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l7:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l7:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l7:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l8 {mso-list-id:1654410809; mso-list-type:hybrid; mso-list-template-ids:-1570099864 -2118494154 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l8:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman"; mso-ansi-font-weight:bold;} @list l8:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l8:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l8:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l8:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l8:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l8:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l8:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l8:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l9 {mso-list-id:1707026192; mso-list-type:hybrid; mso-list-template-ids:-346621816 1868489724 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l9:level1 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.25in; text-indent:-.25in; font-family:"Times New Roman";} @list l9:level2 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:1.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l9:level3 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:2.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l9:level4 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:2.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l9:level5 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:3.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l9:level6 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:3.75in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l9:level7 {mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.25in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l9:level8 {mso-level-number-format:alpha-lower; mso-level-tab-stop:none; mso-level-number-position:left; margin-left:4.75in; text-indent:-.25in; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l9:level9 {mso-level-number-format:roman-lower; mso-level-tab-stop:none; mso-level-number-position:right; margin-left:5.25in; text-indent:-9.0pt; mso-ascii-font-family:"Times New Roman"; mso-hansi-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";} @list l10 {mso-list-id:1950627722; mso-list-type:hybrid; mso-list-template-ids:-261352344 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;} @list l10:level1 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol; mso-bidi-font-family:"Times New Roman";} @list l10:level2 {mso-level-number-format:bullet; mso-level-text:o; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:"Courier New";} @list l10:level3 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Wingdings; mso-bidi-font-family:"Times New Roman";} @list l10:level4 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol; mso-bidi-font-family:"Times New Roman";} @list l10:level5 {mso-level-number-format:bullet; mso-level-text:o; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:"Courier New";} @list l10:level6 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Wingdings; mso-bidi-font-family:"Times New Roman";} @list l10:level7 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol; mso-bidi-font-family:"Times New Roman";} @list l10:level8 {mso-level-number-format:bullet; mso-level-text:o; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:"Courier New";} @list l10:level9 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:none; mso-level-number-position:left; text-indent:-.25in; font-family:Wingdings; mso-bidi-font-family:"Times New Roman";} ol {margin-bottom:0in;} ul {margin-bottom:0in;} -->

·         Minimizing risk of system downtime

·         Disaster recovery and business continuity planning

·         Infrastructure Replacement

·         Documentation

·         Testing

Minimizing Downtime

Recovery

backup

resoration

an exact copy of the most current version of a database, file, or software program

process of installing the backup copy for use

full backup

incremental backup

differential backup

exact copy of the entire database

involves copying only the data items that hae changed since the last backup (makes individual files for each one)

copies all changes made since the last full backup, each new differential backup file contains the cumulative effects of all activity since the last full backup

Real-time Mirroring

Check Point

involves maintaining two copies of the dataase at two separate data centers at all times and updating oth copies in real-time as each transaction occurs

making a copy of the dataase at a point in time during the day

Hot Site

Cold Site

facility that is not only prewired for telephone and Internet access but also contains all the computing and office equipment the organization needs to perform its essential business activities

empty building that is prewired for necessary telephone and internet access, plus a contract with one or more vendors to provide all necessary computer and other office equipemtn within a specified period of time-leaves  the org wihtout the use of its information system for a period of time

organizations constantly modify their info systems to reflect new business practices and to take advantage of advances in info technology, controls are needed to ensure that such changes do not negatively affect systems reliaility.  It also necessary to modify existing controles related to the principes of security, confidentiality, privacy, processing integrity, and availability to maintain their effectiveness after implementing the changes to tech and operating procedures.

Include: change requests should be documented and follow a standardized format that clearly identifies the nature of the change, the reason, and the date of it, should be approved by management, should be thoroughly tested prior to implementation, documentation should be updated, emergency changes documented, backout plans should be developed, user rights and privileges need to be carefully monitored during the change process to ensure segregation of duties