Application Controls - Intro
Ted Wallerstedt, CISA, CIA
Principal Information Systems
Auditor
University of Minnesota

Application Controls - Agenda
• Introduction
• Input Controls
• Interface Controls
• Break
• Access Controls
• Audit Trails
9:00
9:05
9:35
10:05
10:10
10:50

Introduction
• Why audit applications?

Application Risks - STRIDE
• Spoofing Identity
• Tampering with data
• Repudiation
• Information Disclosure
• Denial of Service
• Elevation of Priveldges

Application Security –
Input & Interface Controls
Quinn Gaalswyk, CISA
Senior Information Systems Auditor
University of Minnesota

Application Input Controls
• Controls imbedded in the application
• Used to control functional/business transactions
• Prevent or detect data integrity issues
# 1 REVIEW AND EVALUATE DATA INPUT
CONTROLS

Application Input Control Types -
Edits
• Prevent input from being entered that may cause data-integrity problems

10 Common Input Edits
1.
Numeric alphanumeric restrictions
2.
Dates and hour fields set to convert input into the correct format

10 Common Input Edits
3.
Transaction "reasonableness" checks on inputs

10 Common Input Edits
4.
Limited input fields prevent invalid entries
– E.g. Drop Down Lists
5.
Duplicate entries not allowed for data that is to be unique
6.
“Logic" checks
– E.g. Parts Not Greater than Sum

10 Common Input Edits
7.
“Calculation" checks on inputs

10 Common Input Edits
8.
Programmed cutoff dates
– E.g. preventing wrong period inputs
9.
Execution of a transaction not allowed until valid data entered into all required fields
10.
Database operatives disallowed
– E.g. * or =

Application Input Control Types –
Error/Exception Reports
• Detects data inputted that may cause dataintegrity problems
• Push vs. Pull Reports
• Input is not or cannot be prevented by edits
#2 DETERMINE THE NEED FOR
ERROR/EXCEPTION REPORTS RELATED TO
DATA INTEGRITY, AND EVALUATE WHETHER
THIS NEED HAS BEEN FULFILLED.

Error/Exception Report Considerations
• Who is reviewing the log?
– Confirm review documentation
• What activity/data is logged?
– Log Size
– Reviewing Time

Application Input Control Auditing
• Automated (application) controls: confirm operating effectively
– Test data
– Sample of one
• Reports: confirm creation and review
– Test generation as automated (application) control
– Larger sample of report reviews – Email or written confirmation

Group Activity –
Identify Expected Edits and
Report Controls

Scenario: Edits & Reports Testing eChecks AR/AP Application
What edits or reports would you expect to see?

Scenario: Edits & Reports Testing eChecks AR/AP Application
What are the top controls you want to test?

Interface Controls Defined
• Controls ensuring proper transfer of data between systems
• Controls around both source and downstream systems
#3 REVIEW AND EVALUATE THE CONTROLS IN
PLACE OVER DATA FEEDS TO AND FROM
INTERFACING SYSTEMS.

Common Interface Types
1.
Automated interface
– Batch Processing (i.e. automated jobs)
– Manual kickoff
2.
Manual - Typing Interface

Automated Interface - Batch
Processing
• Multiple places batches/jobs can be ran from:
– Separate shared job scheduler
• E.g. Autosys
– Operating system
• Cron jobs
– Database
• SQL Agent tool
– Application directly

Automated Batch Components
• Batch/Job schedules
– List of what jobs will run when
– May include automated and manual
• Job dependencies
• Operator access (if applicable)
• Job managing software (if separate)

Auditing Automated Batches
• Access to batch schedules
• Batch schedule change procedures
• Batch dependencies noted
• Notifications if automated job abends
– Confirm operator call list/operator monitoring
– Confirm call is automated

Common Interface Controls
1.
Transfer Failure Notification/Reporting
– Timely and to appropriate individuals
2.
Control totals and accompanying reporting
– Record Counts
– Total Amounts
– Hash Totals

Common Interface Controls
3.
Header Footer Checks
– Interchange Control Envelope ISA - IEA
4.
Reconciliation reports
– Review of control totals and/or discrepancies

Common Interface Controls
5.
Transfers should be secured throughout process
– Corruption and viewing
– Source system security
– File creation and storage
– Network security

Common Interface Controls
6.
Input controls into the system where valid – interface edit
– Example: duplicate transaction flag review or prevent for a credit card company

Interface Synchronization
• Data synchronization if multiple sets stored
• Determine source of truth
• Review synchronization process and test data
#4 IN CASES WHERE THE SAME DATA ARE KEPT
IN MULTIPLE DATABASES AND/OR SYSTEMS,
PERIODIC 'SYNC' PROCESSES SHOULD BE
EXECUTED TO DETECT ANY
INCONSISTENCIES IN THE DATA.

Interface Example

Application Security –
Audit Trails
Quinn Gaalswyk, CISA
Senior Information Systems Auditor
University of Minnesota

Application Audit Trails Value
• Show detail of end user activity
– Troubleshooting
– Identify breaches
– Prevent repudiation
#5 REVIEW AND EVALUATE THE AUDIT TRAILS
PRESENT IN THE SYSTEM AND THE
CONTROLS OVER THOSE AUDIT TRAILS.

Auditing Application Audit Trails
• Obtain sample evidence of the audit trail and review
• End users and developers cannot edit the audit trail
– Users MAY view
– Stored on DB or OS
• Pragmatic and useful
– Expensive

Data Flow Traceability
• Data should be traceable through the entire system
• Confirm via audit trail and related controls
#6 THE SYSTEM SHOULD PROVIDE A MEANS
TO TRACE A TRANSACTION OR PIECE OF
DATA FROM THE BEGINNING TO THE END
OF THE PROCESS ENABLED BY THE
SYSTEM.

Application Audit Trail Example

Application Controls –
Access Controls
Ted Wallerstedt, CISA, CIA
Principal Information Systems
Auditor
University of Minnesota

Authentication – Who are you?
#7. DOES AN AUTHENTICATION
METHOD EXIST?
• What are some ways that users can be authenticated?

Authentication – Who are you?
• Passwords
• Multifactor
• Single Sign on
– Log on to OS
– Log on to CAH
– Lon on to TFA server

Passwords
#12. ARE THERE STRONG
PASSWORD CONTROLS IN
PLACE?

Password Controls
• Length
• Complexity
• Change Interval
• History

UMN Password Standard
• Password must be used for all devices
• 8 or more characters long
• Changed at least annually
• Must be complex
• A minimum of three types of characters
• Account lockout required
• Do not share passwords

Activity - Passwords
You have received evidence of the password settings for the application.
Based on the evidence:
• Does the Bookstore application meet
UMN password standards?
• What questions do you have of the admin?

Application Administration
• Add/Delete users/groups
• Change users/groups
• Audit trail
• Reporting
#9. IS THE ADMIN FUNCTION
ADEQUATE?

User Provisioning
• Add/Delete users/groups
• Change users/groups
• Audit trail
• Reporting
#13. IS BUSINESS NEED VERIFIED
BEFORE ACCESS IS GRANTED?

User De-Provisioning
• User quits or is fired
• User changes jobs
• User goes on leave
#11. ARE RIGHTS REMOVED WHEN
NO LONGER NEEDED?

Authorization – What are you allowed to do?
• Access Data (Read/Write)
• Access Transactions (Execute)
• Read (Display/Print/Copy)
• Write (Create/Modify/Delete)
#8. IS AUTHENTICATION AND
AUTHORIZATION REQUIRED FOR
ACCESS?

Transaction Approval
EXAMPLES -
• Transactions limited by dollar amount
• Access requests
• Move to production
• Record of review
#10. IS THERE TRANSACTION
APPROVAL IN THE APPLICATION?

Session Timeout
• Password protected screen savers
• Required by UMN for HIPAA data
• 30 minutes or less
#14. ARE USERS LOGGED OUT WHEN
INACTIVE?

Data Encryption
• HTTPS/SSL
• PKI
• Whole Disk
• Record/field level
#15. IS DATA PROTECTED IN TRANSIT
AND AT REST?

Developer Access
• Segregation of Duties
• Unauthorized changes
• Disruption of service
• Unauthorized transactions
#16. CAN DEVELOPERS CHANGE
PRODUCTION SYSTEMS?

Activity – User Rights
You have requested a list of users and roles for the application. Based on the evidence:
• What issues do you have with the access list?
• What questions do you have of the admin?