Highlight AllMatch CaseMatch DiacriticsWhole WordsPhrase not foundof 3View as TextDownload Automatic Zoom Actual Size Page Fit Page Width 50% 75% 100% 125% 150% 200% 300% 400% 2011 ISACA Tampa Bay Office Furniture Inc.: A Case Study Company Description Tampa Bay Office Furniture Inc. (TBOF) is a publicly held company that manufactures office furniture. The company has two sales offices and a manufacturing plant in the Tampa Bay area. The company has an IBM AS/400-based accounting system that was implemented three years ago. The system was developed in-house. Internally, the company has installed a Novell network that connects all employee desktop computers to the AS/400 system. As part of the recent audit, various personnel in TBOF's computer department have been interviewed, beginning with Mr. David Smith who is the manager of the IT department at TBOF. The auditors have also observed personnel performing their regularly assigned duties and reviewed systems documentation and logs. Based on those interviews, observations, and review of documentation, the audit team has compiled a set of 'audit notes'. Audit Notes 1. Observed that the AS/400 system is housed in a secure area on the third floor of TBOF's corporate office. Access to the computer room is controlled by an electronic card-key system. All entries to and exits from the computer room are logged. There is a Halon gas system installed that is automatically triggered in the event of smoke or fire. 2. In the initial interview with Mr. Smith, he indicated that the IT department was organized in the following sub-areas: systems administration, security, programming, testing, and operations. There are 11 employees within the IT department. 3. After inquiring about TBOF's security policy, Mr. Smith indicated that he had created a policy two years ago. He had downloaded a model security policy off the Internet and rewrote it to suit TBOF's needs. Mr. Smith believes strongly that employees are aware of the company's security policies, but he makes the security policy document available to any employee upon request. Per Mr. Smith, the person in the IT department who is responsible for security issues is Ms. Jill Brown. 4. Noted that the human resources manager has approved the security policy document. 5. Mr. Smith indicated that TBOF has an IT strategic plan that is reviewed and evaluated every year by a steering committee comprised of members from every functional department in the company. Ms. Brown indicated that IT security planning is not performed on an annual basis, but there are elements of IT security is addressed in the IT strategic plan. 6. Per Ms. Brown, TBOF requires all users to have a username to log on to the AS/400 system. Passwords must be eight characters in length and must contain a combination of letters and numbers. Employees must change their passwords every six months. 7. Noted that TBOF management has a policy of purchasing only Hewlett-Packard (HP) products. Consequently, all desktop computers are from the HP Pavilion series. 2011 ISACA 8. Ms. Brown indicates that user sessions automatically time out after 10 minutes of inactivity. Many (but not all) users have enabled screen savers on their computers that engage after five minutes of inactivity. A username and password are required to log back on to a machine when the screen saver is running. 9. Per the organization chart accounts payable(AP) is a separate division. 10. Four employees in the AP department process vendor invoices, match invoices to purchase orders, receiving reports and purchase requisitions. Purchase requisition information is stored in a folder on a shared drive in the AS/400 system. Since the four AP employees often trade-off duties, Mr. Smith decided to allow them to share the same user profile so that they can all access the shared folder containing purchase requisition information. This procedure has allowed AP transaction processing to proceed smoothly even if only one of the four AP staff is available. 11. Ms. Brown confirmed that when an employee is terminated, the user's account is immediately disabled and deleted from the system. 12. Mr. Steven Green, the manager of the accounting department, has been given 'super-user' status to enable him to grant appropriate user rights to accounting department employees involved with making period-ending adjusting entries. Mr. Smith approved Mr. Green's super-user status as necessary due to the high turnover in the accounting department that was making it difficult for Ms. Brown to keep up with the requests for assigning user rights. 13. Ms. Brown indicated that once a month she reviews the access rights of all employees, including employees in the accounting department. She writes up a report of exceptions and sends the report to Mr. Green. Ms. Brown is unsure of the follow-up done by Mr. Green if any. 14. Per Mr. Smith, the company has implemented a sophisticated firewall and intrusion detection system (IDS) to protect the AS/400 system from hacking attempts. These systems have been subjected to rigorous testing by Mr. Gary Varner and Mr. William Nesbitt, the two employees in the IT department who are Novell Certified Engineers. 15. Documentation provided by Ms. Brown included printouts of system logs from the AS/400 system. A section of the logs provides details of user logins, including the date/time of logon and the module within the system that was accessed. Failed logins and 'access denied' entries are in a separate section of the logs. When asked, Ms. Brown indicated that although she reviews the logs occasionally, she does not have time to review them every week. 16. When observing an AP employee working at her machine, noted that the antivirus program flashed an alert on the screen and automatically deleted an infected file. 17. Ms. Brown indicated that she is the individual in the IT department responsible for assigning user rights to employees, which define the functions that each employee can perform within TBOF's AS/400 system. All requests for changes in user rights, except for super-user accounts, come to Ms. Brown. 18. Mr. Smith said that management plans to invest in an enterprise resource planning (ERP) system (such as SAP or Oracle) that will integrate accounting with the marketing, production and management business functions in the near future. 2011 ISACA 19. Asked about the process of handling program changes, Mr. Smith indicated that all program change requests are first sent via e-mail to Ms. Vicky Mitchell, who is the person in the IT department responsible for handling program changes. Ms. Mitchell then forwards the e-mail to Mr. Smith, who replies by either approving or denying the change request. As documentation of the program change requests and approval/denial, Ms. Mitchell saves a copy of each of these e-mails in a separate folder in her e-mail Inbox. This process works well for the most part, except that users occasionally have 'emergency' change requests that Ms. Mitchell sometimes has to process without Mr. Smith's approval when he is absent. 20. Ms. Mitchell indicated that she assigns approved program change requests to Mr. Jack Solomon, the programmer in the IT department who is responsible for program changes. Mr. Solomon makes these changes on an 'off-line' duplicate version of the live operational system running on the AS/400 system. Testing of the changed versions of programs is done by a second programmer, Mr. Tony Yeager, whose only job is to test program changes. Once Mr. Yeager is satisfied with the change, Mr. Solomon transfers the changed program over to the production (life) system. 21. Regarding the routine running of programs on the AS/400 system, Mr. Smith provided a detailed schedule that shows when jobs are routinely run on the system. For example, all payroll jobs are run on Friday at 10 a.m. Sales and purchasing systems are 'real-time'these transactions are processed from remote terminals in the sales and purchasing departments. The accounting, marketing, and production departments of TBOF submit jobs, per the approved schedule, for routine reports they require. 22. Mr. Smith indicates that there is one daytime operator of the system and one nighttime operator, with a backup operator from the network administration department who can perform the duties as necessary in case of sickness or absence. 23. In touring the computer room, noted that the operator clicked on a prompt on the main computer console to close a window. Upon inquiry, the operator indicated that the prompt was a notification of an update to the AS/400 operating system; he indicated that all such 'patches' are installed together on the last Saturday of every month to avoid operational disruption. During the tour, the operator received a phone call from the marketing manager to run a report on an 'emergency basis. The operator complained about the request but acquiesced. The operator wrote an entry in the operator's log next to the main console to record the unscheduled job. 24. Observed that the printer in the computer room prints a one-page report of every job run on the AS/400 system. These job reports are filed within the computer room. 25. Upon inquiry, the operator indicated that scheduled jobs stop running very rarely due to system errors. When such situations occur, the operator calls one of the systems administrators in the IT department, who provides instructions on how the aborted job should be re-run.

Identifying IT Controls

From the above case study Develop the following based on the required reading and the methodology presented in class:

1. Select 6 deficiencies (audit notes) from Tampa Bay Office Furniture Inc.docx 2. The goal is to identify COBIT 5 processes and sub-processes from the COBIT5_and_Assurance_Toolkit.pdf document. To achieve this goal you may have to start from the respective Enterprise Goal(s) or IT Goal(s) and then use the mapping provided in the COBIT5_and_Assurance_Toolkit.pdf document to identify candidate COBIT 5 process and sub-processes. 3. Obviously, by following the above process you can end up with a large number of Goals and Processes. You will need to prioritize and select the ones that will provide the largest benefit. Explain your rationale. How the selected sub-activities would address the selected deficiencies.

• Create a report of 500 words