Question

Evaluate three emerging issues that relate to the implementation of IT systems and the related impact to the fraud environment. Recommend a risk mitigation strategy associated with installing a new database system, and determine the impact of designing an effective internal control audit plan to determine whether those risks have been identified.

Answer 1

three emerging issues that relate to the implementation of IT systems

• Weak Strategy.
• Ineffective training.
• Lack of resources.

The Fraud Triangle :

Fraud has become an important topic in today’s business environment, especially in the light of scandals such as Enron and WorldCom. While many think of top corporate executives committing fraudulent acts, especially those considering financial reporting, it is important to note that lower level employees also add to the risk of fraud within a company. The fraud triangle shows the three main elements necessary in order to create fraud: pressure, rationalization, and opportunity

Risk Mitigation Startegy:

As a complement to the database security methodology detailed here, here are some quick tips to remember when setting up strategy for locking down your information repositories.

• Inventory existing installations.
• Make sure everything is properly patched.
• Disable unused functionality.
• Drop unnecessary privileges.
• Use strong encryption.
• Enable auditing.
• Validate application code.