Question

In: Accounting

Illustrate each of the following concepts: (approximately 80 words each) 1. Audit trail 2. Information Technology...

Illustrate each of the following concepts: (approximately 80 words each)

1. Audit trail

2. Information Technology Governance

3. Preventive controls

Solutions

Expert Solution

1) Audit Trail

An audit trail (also called audit log) is a security-relevant chronological record, set of records, and/or destination and source of records that provide documentary evidence of the sequence of activities that have affected at any time a specific operation, procedure, or event. Audit records typically result from activities such as financial transactions, scientific research and health care data transactions, or communications by individual people, systems, accounts, or other entities.

The process that creates an audit trail is typically required to always run in a privileged mode, so it can access and supervise all actions from all users; a normal user should not be allowed to stop/change it. Furthermore, for the same reason, the trail file or database table with a trail should not be accessible to normal users. Another way of handling this issue is through the use of a role-based security model in the software. The software can operate with the closed-looped controls, or as a 'closed system', as required by many companies when using audit trail functionality.

2) Information Technology Governance

IT governance (ITG) is defined as the processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals. IT demand governance (ITDG—what IT should work on) is the process by which organizations ensure the effective evaluation, selection, prioritization, and funding of competing IT investments; oversee their implementation; and extract (measurable) business benefits. ITDG is a business investment decision-making and oversight process, and it is a business management responsibility. IT supply-side governance (ITSG—how IT should do what it does) is concerned with ensuring that the IT organization operates in an effective, efficient and compliant fashion, and it is primarily a CIO responsibility.

3) Preventive controls

Preventative controls are designed to be implemented prior to a threat event and reduce and/or avoid the likelihood and potential impact of a successful threat event. Examples of preventative controls include policies, standards, processes, procedures, encryption, firewalls, and physical barriers.

Preventive controls are used to keep a loss or an error from occurring. Examples of preventive controls are segregated duties and the physical protection of assets. These controls are typically integrated into a process, so that they are applied on a continual basis. They are especially common when the severity of a loss is considered to be quite high, so that their imposition will lower the probability of any loss ever occurring.


Related Solutions

Answer the following questions:       1. What is an audit trail and why is it important in...
Answer the following questions:       1. What is an audit trail and why is it important in accounting?       2. There are several types of corporations. If you were to start your own business and incorporate; discuss what type of corporation you would want to be.             Explain why.
1.All the following documents can be used for payroll audit trail except: Select one: a. Job...
1.All the following documents can be used for payroll audit trail except: Select one: a. Job tickets b. Imprest account c. Personnel action forms d. Timecards 2.All the following are examples of problems that may occur as a result of combining applications programming and maintenance tasks into one position, except: Select one: a. Job security issues b. Increased potential for program fraud c. Inadequate documentation d. Maintenance irregularities 3.When processing records, the system sequences records according to the primary key...
Briefly describe the following key concepts and principles of accounting: [80-100 words] a) Accounting Entity Concept...
Briefly describe the following key concepts and principles of accounting: [80-100 words] a) Accounting Entity Concept b) Reliability Principle c) Going Concern Principle d) Full Disclosure Principle
Define - in your own words - each of the following related concepts with the costs...
Define - in your own words - each of the following related concepts with the costs of a product or service: to. F. Product costs g. Raw material / Direct material h. Direct labor / Direct labor i. Indirect costs (manufacturing overhead) j. Selling Costs / Marketing Costs k. General and administrative costs 2. Mention an example of each of the concepts, behaviors and / or characteristics of the costs defined in numeral 1.
Compare internal audit and external audit, provide the following for each: 1.Definition 2.Purpose 3.Who is the...
Compare internal audit and external audit, provide the following for each: 1.Definition 2.Purpose 3.Who is the beneficiary of the audit work? 4.What is the relationship between auditor and auditee? 5.The qualification of the auditor 6.What is the audit work plan based upon? 7.Who does the auditor report to? Please provide the hierarchy of authority in audit reporting. 8.What is the scope of audit work? Please provide a list of items that could be included in the auditing scope.
Merck & Co Ink (MRK) Write a 1-2 page (approximately 500 words) paper on the following:...
Merck & Co Ink (MRK) Write a 1-2 page (approximately 500 words) paper on the following: Part A-Fundamental Valuation: Estimate a growth rate for your firm's Dividends per Share. Assume a 12.5% discount rate. Calculate an estimated value of a share of the stock using the constant-growth model (Eq. 8-6 in the textbook), also known as the Gordon growth model. Compare and contrast your valuation results with the current share price in the market. Respond to this question: What changes...
In 500 - 600 words define any two (2) of the following terms or concepts and...
In 500 - 600 words define any two (2) of the following terms or concepts and provide at least one example for each. Social contract Articles of Confederation Federalism Full Faith and Credit clause Police powers Civil liberties Be sure to use examples to support your definitions. Note - This question is from the American government.
Calculate ??/2 for each of the following. Illustrate your answers with graphs. a. ? = 0.10...
Calculate ??/2 for each of the following. Illustrate your answers with graphs. a. ? = 0.10 b. ? = 0.01 c. ? = 0.05 d. ? = 0.20
define the following concepts and discuss the application of each: 1. Marketing Management 2. Consumers Value...
define the following concepts and discuss the application of each: 1. Marketing Management 2. Consumers Value 3. Marketers 4. Marketing ethics please define in detail and please provide the references for the work.
Internal Audit Question 1 The following information is extracted from a draft of an audit report...
Internal Audit Question 1 The following information is extracted from a draft of an audit report prepared upon the completion of an audit of the inventory warehousing procedures for a division. Findings [#5] We performed extensive tests of inventory record-keeping and quantities on hand. Based on our tests, we have concluded that the division carries a large quantity of excess inventory, particularly in the area of component parts. We expect this is due to the conservatism of local management that...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT