You are the manager of internal audit for Do-It-All, Ltd., a large, diversified, decentralized manufacturing company. Over the past two years, the information systems function in Do-It-All has undergone some dramatic changes. In particular, in light of a new strategic plan formulated by top management, it has shifted from a centralized operation to widely dispersed, decentralized operations. After top management had given approval to divisional and departmental managers to pursue their own information systems initiatives (providing projects appeared to be cost-effective), decentralized information systems groups and end-user groups began to proliferate. Indeed, the activities of the centralized information systems group were decimated.

Over a long period of time you had formulated a set of high-quality audit programs to help you evaluate the information systems function. It has become clear to you, however, that these programs badly need updating in light of the decentralization of the information systems function that has occurred. You are currently engaged in the process of systematically updating these programs.

Required. Outline an audit program that will allow you to evaluate the design phase of the program development life cycle. Your audit program should start by stating the audit objectives you are seeking to achieve in undertaking an evaluation of the design phase. Next you should list the major controls you would typically test in undertaking an evaluation of the design phase. Finally, you should describe the evidence-collection techniques you would use to test whether the controls are in place and operating reliably. Note that your audit program should take into account the decentralized nature of Do-It-All's information systems function and, in particular, the prominent role played by end users in the development, maintenance, and operation of information systems. Provide sufficient guidance so that one of your junior staff, with adequate supervision, could follow your audit program.