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La Consolacion College Manila

IS AUDIT
CLASS ACTIVITY
NOVEMBER 16, 2020
DUE DATE: NOVEMBER 23, 2020 (MONDAY) AT 1:00 PM
WHERE TO SUBMIT: MOODLE LMS ASSIGMENT MENU

Rainbow Paint Company, a medium-sized manufacturing firm, has no internal auditing

department. It recently hired a new accounting firm to perform the external audit. As part
of this audit engagement is the tests of Rainbow’s automated internal control system.
Assume that you are a member of the audit team who is assigned to draft the AUDIT
PROGRAM for the tests of Rainbow’s general controls and application controls.

CLASS ACTIVITY 1 ( AUDIT PROGRAM FOR TESTS OF GENERAL CONTROLS)

INSTRUCTION:

1. Develop AUDIT PROGRAM 1 to test the following IT controls:

(1) Operating system controls;

(2) IT organizational structure controls;
(3) Data management controls;
(4) System development controls;
(5) System maintenance controls;
(6) Computer center security and controls;
(7) Intranet and Internet controls;
(8) EDI controls (Electronic Data Interchange)

CLASS ACTIVITY 2 (AUDIT PROGRAM FOR TESTS OF APPLICATION

CONTROLS)

2. Develop AUDIT PROGRAM 2 to test the following IT controls:

(1) Input controls
(2) Processing controls
(3) Output controls

3. Include in your AUDIT PROGRAM/S, the audit objectives, exposures/risks,

necessary controls, and audit procedures.

4. Follow the prescribed format as shown below

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PRESCRIBED FORMAT

La Consolacion College Manila

First Semester SY 2020-2021

INFORMATION SYSTEMS AUDIT

Surname/First name/ M.I.____________ Section: ________ Class Schedule:__________

AUDIT PROGRAM 1 (TEST OF GENERAL CONTROLS)

(1) OPERATING SYSTEMS CONTROLS

AUDIT AUDIT
OBJECTIVES EXPOSURES/ NECESSARY PROCEDURES
RISKS CONTROLS (TESTS OF
CONTROLS)
1. To determine  Unauthorized access  Access controls 1. Read and review
whether access to to operating systems written security
operating systems is policies and procedures
limited to those relating to controls
individuals over the operating
authorized to system.
process or maintain 2. Inspect the physical
the operating location of the
systems computer/server/storag
e rooms appropriate to
ensure operating
system security.
3. Check whether
physical access devices
(i.e. car-key or
combination lock
systems) used to
restrict entrance to the
server/computer rooms
are functioning
properly.

2. To verify that access  Lack of segregation of 4. Review job description

privileges are duties/ presence of of the system
granted in a manner incompatible administrator.
consistent with the functions
need to separate 5. Inquire about
incompatible privileges of a
functions selection of user
organizational groups and individuals
policy. to determine if their
access rights are
. appropriate for their
job descriptions and
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positions.

6. Verify that individuals

are granted access to
operating systems are
based on their need to
know.
Do the same to General Control No. 2 to 8

REFERENCES:

La Consolacion College Manila

First Semester SY 2020-2021

INFORMATION SYSTEMS AUDIT

Surname/First name/ M.I.____________ Section: ________ Class Schedule:__________

AUDIT PROGRAM 2 (TEST OF APPLICATION CONTROLS)

(1) INPUT CONTROLS

AUDIT AUDIT
OBJECTIVES EXPOSURES/ NECESSARY PROCEDURES
RISKS CONTROLS (TESTS OF
CONTROLS)
1.  1.
Do the same to (2) Processing Controls and (3) Output Controls

REFERENCES:

MORE INSTRUCTION:

1. Observe the following document format:

MS Word
Landscape
13’ 8.5 inches
Font type: Any
Font size: 10

2. In formulating an audit objective (meaning, the aim or purpose to be achieved in

performing an audit procedure), you may start your statement, to wit:
“To determine”; “To verify”; “ To assess”; “To evaluate”; etc.
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3. In formulating audit procedures (meaning, detailed acts to be performed in audit), you

may start your sentence with a VERB using any of the ff. sample terms:

Inspect
Observe
Scan
Check
Compare
Confirm
Vouch
Count
Reconcile
Match
Ask or inquire
Read
Foot or cross-foot
Test

4. You may use the lecture aids that I have just uploaded to create your AUDIT
PROGRAM. For your guidance in creating your own Audit Program (in identifying
Risks/ Exposures for not having appropriate/sufficient controls, and in formulating
Audit Objectives and Procedures), please refer to your earlier Lecture Materials or
you may search for sample audit programs from the internet which you may use as
model.

5. Submit your complete output/s to LCCM Moodle LMS “Assignment” Menu on or

before 1:00 PM of November 23, 2020 (Monday).