QUESTION $4$

Green Limited $($Green$)$ is a small trading company in the country. Green sells fashionable, stylish shoes at affordable prices through various retail shops to the public. The head office is situated in Johannesburg and functions such as marketing, human resources and accounting are centralised. Green has a board of directors, a chief executive officer $($CEO$),$ a chief information officer $($CIO$)$ and an audit committee. All transactions of Green are computerised and therefore Green will have to ensure that the current facilities, hardware and software infrastructure will be sufficient to handle all computerised activities and transactions.

Two months ago, the CIO requested the internal audit function to do a complete general control review of the existing information technology $($IT$)$ infrastructure before the additional computer hardware and software that will be required for the tolling system, is added. This engagement was therefore a special management request and included all the general IT departmental activities pertaining to facilities and hardware for the financial year ending $30$ June $20$X$1.$ The objective of the audit engagement was to evaluate the adequacy and effectiveness of the general controls surrounding the IT facilities and hardware. You were appointed as the auditorin$-$charge of this engagement. The two internal auditors that report to you have completed the engagement, based on the risk assessment and engagement work programme you prepared. According to the internal audit engagement file, the following was noted during the engagement:

Green's IT infrastructure is mostly centralised at head office with two servers each hosting a large database. The two servers are situated at the back of the building in a room that has been constructed with thick, windowless walls and air conditioning. Fire extinguishing sprinkler systems are situated throughout the building, except for the server room, which has been fitted with a halogen gas fire extinguishing system. These systems are also tested on a regular basis.