Chapter 8

Information Systems Controls for System Reliability Part 1: Information Security

8-1
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 Learning Objectives

Discuss how the COBIT framework can be used to

develop sound internal control over an organizations
information systems.

Explain the factors that influence information systems

reliability.

Describe how a combination of preventive, detective,

and corrective controls can be employed to provide
reasonable assurance about information security.

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 AIS Controls

COSO and COSO-ERM address general internal control

COBIT addresses information technology internal

control

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 Information for Management Should
Be:
Effectiveness
Information must be relevant
and timely.
Efficiency
Information must be
produced in a cost-effective
manner.
Confidentiality
Sensitive information must
be protected from
unauthorized disclosure.
Integrity
Information must be
accurate, complete, and
valid.
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Availability
Information must be
available whenever needed.
Compliance
Controls must ensure
compliance with internal
policies and with external
legal and regulatory
requirements.
Reliability
Management must have
access to appropriate
information needed to
conduct daily activities and
to exercise its fiduciary and
governance responsibilities.
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 COBIT Framework

Information
Criteria

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 COBIT Cycle

Management develops plans to organize information

resources to provide the information it needs.

Management authorizes and oversees efforts to acquire

(or build internally) the desired functionality.

Management ensures that the resulting system actually

delivers the desired information.

Management monitors and evaluates system performance

against the established criteria.

Cycle constantly repeats, as management modifies

existing plans and procedures or develops new ones to
respond to changes in business objectives and new
developments in information technology.

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 COBIT Controls

210 controls for ensuring information integrity

Subset is relevant for external auditors
IT control objectives for Sarbanes-Oxley, 2nd Edition

AICPA and CICA information systems controls

Controls for system and financial statement reliability

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 Trust Services Framework
Security
Access to the system and its data is controlled and restricted to legitimate
users.

Confidentiality
Sensitive organizational information (e.g., marketing plans, trade secrets)
is protected from unauthorized disclosure.

Privacy
Personal information about customers is collected, used, disclosed, and
maintained only in compliance with internal policies and external
regulatory requirements and is protected from unauthorized disclosure.

Processing Integrity
Data are processed accurately, completely, in a timely manner, and only
with proper authorization.

Availability
The system and its information are available to meet operational and
contractual obligations.

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 Trust Services Framework

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 Security / Systems Reliability

Foundation of the Trust Services Framework

Management issue, not a technology issue
SOX 302 states:
CEO and the CFO responsible to certify that the
financial statements fairly present the results of
the companys activities.
The accuracy of an organizations financial
statements depends upon the reliability of its
information systems.
Defense-in-depth and the time-based model of
information security
Have multiple layers of control

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 Managements Role in IS Security

Create security aware culture

Inventory and value company information resources

Assess risk, select risk response

Develop and communicate security:

Plans, policies, and procedures

Acquire and deploy IT security resources

Monitor and evaluate effectiveness

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 Time-Based Model

Combination of detective and corrective controls

P = the time it takes an attacker to break through the
organizations preventive controls
D = the time it takes to detect that an attack is in
progress
C = the time it takes to respond to the attack
For an effective information security system:
P>D+C

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 Steps in an IS System Attack

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 Mitigate Risk of Attack

Preventive Control

Detective Control

Corrective Control

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 Preventive Control

Training

User access controls (authentication and authorization)

Physical access controls (locks, guards, etc.)

Network access controls (firewalls, intrusion prevention

systems, etc.)

Device and software hardening controls (configuration

options)

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 Authentication vs.
Authorization
Authenticationverifies who a person is
1. Something person knows
2. Something person has
3. Some biometric characteristic
4. Combination of all three

Authorizationdetermines what a person can access

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 Network Access Control
(Perimeter Defense)
Border router
Connects an organizations information system to the
Internet

Firewall
Software or hardware used to filter information

Demilitarized Zone (DMZ)

Separate network that permits controlled access from the
Internet to selected resources

Intrusion Prevention Systems (IPS)

Monitors patterns in the traffic flow, rather than only
inspecting individual packets, to identify and automatically
block attacks

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 Internet Information Protocols

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 Device and Software
Hardening (Internal Defense)
End-Point Configuration
Disable unnecessary features that may be vulnerable to
attack on:
Servers, printers, workstations

User Account Management

Software Design
Programmers must be trained to treat all input from
external users as untrustworthy and to carefully check it
before performing further actions.

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 Detective Controls

Log Analysis
Process of examining logs to identify evidence of possible
attacks

Intrusion Detection
Sensors and a central monitoring unit that create logs of
network traffic that was permitted to pass the firewall and
then analyze those logs for signs of attempted or
successful intrusions

Managerial Reports

Security Testing

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 Corrective Controls

Computer Incident Response Team

Chief Information Security Officer (CISO)

Independent responsibility for information security
assigned to someone at an appropriate senior level

Patch Management
Fix known vulnerabilities by installing the latest updates
Security programs
Operating systems
Applications programs

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 Computer Incident Response
Team
Recognize that a problem exists

Containment of the problem

Recovery

Follow-up

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 New Considerations

Virtualization Risks
Multiple systems are Increased exposure if
run on one breach occurs
computer Reduced
authentication
Cloud Computing standards
Remotely accessed Opportunities
resources Implementing strong
access controls in the
Software cloud or over the server
applications that hosts a virtual
Data storage network provides good
security over all the
Hardware systems contained
therein
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