Problem 2. DATA CENTER SECURITY The auditors of a financial Investment firm located in Tulsa, Oklahoma, have serious concerns regarding the computing facilities of their client. They point to the following key issues:

The company's data center is in the basement of a rented building. Company management believes that the location is secure enough to protect their data from physical threats.

The servers are housed in a room that has smoke detectors and associated sprinklers.

Client investment and account information are stored on these servers. This information includes the total value of the portfolio, type of investments made, the income structure of each client, and associated tax liabilities.

The auditors are concerned that these practices are inadequate and that more secure alternatives should be explored. Management has expressed counter concerns about the high cost of purchasing new equipment and relocating its data center.

Required:

a. What risks currently exist that are of concern to the auditors?

b. Describe control features that contribute to the physical security of the computer center.

c. Discuss some options open to company that may reduce their operating costs and provide the security the auditors seek.