CASE 3 (20 MARKS) P2S Automotive Centre is an authorized Perodua service and spare parts centre that specializing in vehicle maintenance, repairs and car parts and accessories supplier for all types of Perodua vehicles (including Alza, Myvi, Viva, Kelisa, Kenari, Kembara, Kancil, Nautica, Rusa and Bezza). It also assists in warranty claims for Perodua vehicles that is covered under the warranty period. P2S Automotive Centre has a dedicated team of service advisors, foreman and mechanics to ensure their customers vehicles are taken care of. It started its operations in 2015 and currently uses stand-alone or unrelated software applications to manage its business processes. The business processes include procurement, inventory management and control, accounts, clients, human resource and monitoring. As to effectively manage its customer base and business grow, automation and digitalization will be the way forward for P2S Automotive Centre. The concepts like internet of things (IoT), automation, artificial intelligent and digitalization will become extremely relevant going forward and are going to define the new way of working. This is essential for achieving business sustainability, to reduce dependence on human labour, increase productivity and preventing the chances of future centre shutdowns. In addition, the coronavirus pandemic has accelerated and become a wake-up call for P2S Automotive Centre in considering whether an enterprise-wide system is a suitable replacement of all the unrelated software applications. As a Specialist Information Technology Internal Auditor for P2S Automotive Centre, you have received the following e-mail from the Chief Internal Auditor. From: Che Johan: Wednesday 02/02/2020 09:15 To: Badrul Hisham Subject: Urgent Automation and Digitalization of Business Processes Assalamualaikum and Good Day Badrul, The top management of P2S Automotive Centre has asked me to deliver a session on auditing (with focus on IT auditing) to a group of new graduate trainees as part of their week-long induction into the company. The scheduled date is on Friday, 14 February 2020 at P2S meeting room at 10.00 am. I am guessing I was not first choice on the list! Still, I am hoping to arrange a 6-month placement for at least two of the trainees with us in IT Audit, so it will be good to meet them and give over a positive view of what our IT Audit unit do here. I hear anecdotally that IT Audit is very challenging, not suitable for accounting students and solely for information system and IT-related graduate only. I would like to think we can go some way to changing this rather unfair view. Unfortunately, I cannot be there on Friday and you as the head of IT Audit unit will be the best person to substitute me. 4 BKAA3023 AUDIT AND ASSURANCE II On the other hand, concerning the amendment to the paperwork on the automation and digitalization of business processes in P2S Automotive Centre, the management has approved the additional budget for automation of its operations using an off-the-shelf package. Recently, during the preliminary Software Development Lifecycle (SDLC) meeting on the 1 February 2020, a number of defects and problems were identified with the software. The local agents of the software providers need to be invited immediately for a discussion and solution of the defects and problems. The management of P2S Automotive Centre directed that to save time, the agents should quickly address and prepare a comprehensive plan to fix the problems on their own prior to the next meeting with our team. It is critical for enabling the normal operations to be continued smoothly, efficiently and effectively achieve it desired objectives. You must ensure that only after the agents reported they had completed their job and perform all required tests, then the next SDLC process can be resumed as planned, so that we can avoid any software issues in the future. See you in the next meeting. Regards, Che Johan REQUIRED: Prepare presentation notes on the following areas:

(a) Discuss THREE (3) inherent risks to the operation of IT systems. (6 Marks)

(b) Explain TWO (2) advantages of an 'enterprise-wide' system. (2 Marks)

(c) Explain THREE (3) difficulties associated with using embedded audit software as part of the audit process. (6 Marks)

(d) Give advice to the management of P2S Automotive Centre on the THREE (3) best ways how software defects and problems should be handled in future. (6 Marks)