INTOSAI IT Audit IT Methods Awareness

Outline Scope Overview It Methods Methods Description Methods Usage Audit Reporting

Scope It Methods Described For: Project Selection, Control, Evaluation Systems Development Systems Acquisition Enterprise Architecture Development Security Assessment

Overview Methods Listed Here Are Generally Accepted in The Community Methods Assess or Prescribe “What” Must Be Done Not “How” to Accomplish Activity Methods Provide a Framework to Audit It Activity

It Methods

Methods Description Module 1 Project Selection, Control, Evaluation

Project Selection, Control, Evaluation Wisely Managed Investments in It Can Improve Organizational Performance Internet and Local Area Networks Enable Data Sharing and Research Data Warehouse Permits Organizations to Discover Unknown Fiscal or Physical Resources

Project Selection, Control, Evaluation However, Along With the Potential to Improve Organizations, It Projects Can Become Risky, Costly, Unproductive Mistakes In Response, Gao Developed Guidance, That Provides a Method for Evaluating and Assessing How Well an Agency Is Selecting and Managing Its It Resources

Project Selection, Control, Evaluation The Select/control/evaluate Model Has Become a Central Tenet of the It Investment Management Approach

Project Selection, Control, Evaluation During the Selection Phase the Organization Selects Those It Projects That Will Best Support Its Mission Needs and Identifies and Analyzes Each Project’s Risks and Returns Before Committing Significant Funds to a Project.

Project Selection, Control, Evaluation During the Control Phase the Organization Ensures That, As Projects Develop, the Project Is Continuing to Meet Mission Needs at Expected Levels of Cost and Risk If the Project Is Not Meeting Expectations Steps Are Taken to Address the Deficiencies

Project Selection, Control, Evaluation Lastly, During the Evaluation Phase, Actual Versus Expected Results Are Compared to Assess the Project’s Impact on Mission Performance, Identify Any Changes or Modifications to the Project That May Be Needed, and Revise the Investment Management Process Based on Lessons Learned

Project Selection, Control, Evaluation Gao’s Information Technology Investment Model (Itim) Model Is Comprised of Five Stages of Maturity Each Stage Builds Upon the Lower Stages and Enhances the Organization’s Ability to Manage Its It Investment Stages

Project Selection, Control, Evaluation Five Stages Of Investment Maturity

Project Selection, Control, Evaluation Progressing Through the ITIM Stages of Maturity

Project Selection, Control, Evaluation Itim Is a Tool for Assessing the Maturity of an Organization An Itim Assessment Can Be Conducted for an Entire Organization or For One of Its Lower Divisions Itim Is Applicable to Organizations of Different Sizes

Project Selection, Control, Evaluation Itim Allows Auditors to Assesses the Maturity of Organizations to Manage Investments Itim Provides a Maturity Stage or “Level” for an Organization Each Maturity Stage or “Level” Has Required Practices or Activities

Project Selection, Control, Evaluation ITIM Required Processes

Project Selection, Control, Evaluation Applying the Model Requires Assessing Critical Processes, Such As the Processes Used to Create an It Investment Portfolio Core Elements, (Purpose, Organizational Commitment, Prerequisites, Activities, and Evidence of Performance)

Questions / Discussion Comments Discussion Etc.

Methods Description Module 2 Systems Development

Systems Development Systems Development Includes Activities Such As Project Management, Requirements Management, Configuration Management Software Development, Testing, Etc.

Systems Development Many Organizations Rely on Software-intensive Systems to Perform Their Missions Software Quality Is Governed by the Quality of the Processes Used To Develop the Software (Provide Reference)

Systems Development The Software Engineering Institute Has Developed a Number of Models That Facilitate Assessing the Maturity of Organizations Developing Software The Models Are Called Capability Maturity Models (Cmm)

Systems Development What Is the Cmm? An Ordered Collection of Practices for the Acquisition, Development or Maintenance of Systems Ordered by “Key Process Area” Practices Determined by the Community Through Broad Peer Reviews Defines the Stages Through Which Organizations Evolve As They Improve Their Acquisition Process Identifies Key Priorities, Goals and Activities on the Road to Improving an Organization's Capability to Do Its Job

Systems Development The Cmm Provides a Framework for Identifying an Organization’s Process Strengths and Weaknesses Assisting an Organization Develop a Structured Plan for Process Improvement

Systems Development Who Uses the Sw-cmm? Organizations That Develop or Maintain Products That Contain Software Organizations Who Want to Improve Their Software Development Processes Audit Organizations Who Want to Assess the Maturity Of Organizations Developing or Maintaining Software Products

Systems Development The Cmm Is Structured Into Five Maturity Levels Each Level Has Key Process Areas (Kpa) Each Kpa Has Goals Goals Require Certain Activities Be Performed Management Provides Support and Verifies That Activities Are Being Performed

Systems Development

Systems Development The Five Levels Are 1. Initial: The Software Process Is Characterized As Ad Hoc and Few Processes Are Defined 2. Repeatable: Basic Project Management Processes Are Established; Improvement Activities Are Begun 3. Defined: Software Processes Are Documented and Standardized; All Projects Use an Approved, Tailored Version of the Organization’s Standard Software Processes

Systems Development The Five Levels Are (Contd.) 4. Managed/quantitative: Detailed Measures of the Software Processes, Products, and Services Are Collected; the Software Processes and Products Are Quantitatively Measured and Controlled 5. Optimizing: Continuous Process Improvement Is Enabled by Quantitative Feedback From the Process and From Piloting Innovative Ideas and Technologies

Systems Development Software CMM Levels and KPAs

Systems Development Cmm Common Features Commitment To Perform Ability To Perform Activities Measurement & Analysis Verification

Systems Development Commitment To Perform Describes What an Organization Must Do to ‘Set the Stage’ for Process Improvement / Implementation Involves Establishing Policy Assigning Responsibility

Systems Development Ability To Perform Describes the Preconditions That Must Be Present to Facilitate Process Improvement / Implementation Assignment of Duties to Groups Providing Trained or Experienced Personnel Ensuring Adequacy of Resources

Systems Development Activities Describe the Activities, Roles, and Procedures That Are Necessary to Implement the Key Process Area Requires Formal and Informal Planning Documents Requires Formally Documented Procedures Requires (Depending on Kpa) Coordination With Other Affected Groups, Tracking Contractor Performance, Etc.

Systems Development Measurement & Analysis Describes the Practices That Must Be Accomplished to Enable the Group to Track the Status of the Kpa Effort & Funds Expended by the Project Team in Conducting Its Activities Tracking Their Schedule and Progress (for Developing Formal Plans, Requirements, Etc.)

Systems Development Verification Describes the Practices That Must Be Performed to Ensure That Project and Senior Management Oversee the Activities of the Group Includes Periodic or As Needed Project Level Reviews Senior Management Level Reviews

Systems Development Example From Model

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Methods Description Module 3 Systems Acquisition

Systems Acquisition Systems Acquisition Includes Activities Such As Project Management, Requirements Management, Solicitation, Contractor Tracking Evaluation, Risk Management, Etc.

Systems Acquisition Many Organizations Rely on Software-intensive Systems to Perform Their Missions Organizations Have Been Increasingly Contracting Out for Software or Engineering Services

Systems Acquisition The Software Engineering Institute Has Developed a Number of Models That Facilitate Assessing the Maturity of Organizations That Acquire Software or Systems The Models Are Called Capability Maturity Models (Cmm)

Systems Acquisition Just As For Software Development There Is the Sw-cmm (or Just Cmm) For Assessing or Improving Acquisition Related Activities, The Sei Has Developed the Software Acquisition Capability Maturity Model (Sa-cmm)

Systems Acquisition Who Uses The Sa-cmm? Organizations That Acquire or Support Acquisition of Products That Contain Software, Including Software Support and Maintenance Organizations That Are Responsible for Acquisition Life Cycle From Requirements Development Through System Delivery and Support Audit Institutions That Want To Assess How Effectively Software or Services Are Being Acquired

Systems Acquisition The Sa-cmm Is Also Structured Into Five Maturity Levels Each Level Has Key Process Areas (Kpa) Each Kpa Has Goals Goals Require Certain Activities Be Performed Management Provides Support and Verifies That Activities Are Being Performed

Systems Acquisition

Systems Acquisition The Five Levels Are 1. Initial: The Software Process Is Characterized As Ad Hoc and Few Processes Are Defined 2. Repeatable: Basic Project Management Processes Are Established; Improvement Activities Are Begun 3. Defined: Software Processes Are Documented and Standardized; All Projects Use an Approved, Tailored Version of the Organization’s Standard Software Processes

Systems Acquisition The Five Levels Are (Contd.) 4. Managed/quantitative: Detailed Measures of the Software Processes, Products, and Services Are Collected; the Software Processes and Products Are Quantitatively Measured and Controlled 5. Optimizing: Continuous Process Improvement Is Enabled by Quantitative Feedback From the Process and From Piloting Innovative Ideas and Technologies

Systems Acquisition

Systems Acquisition Example From Model

Questions / Discussion Comments Discussion Etc.

Methods Description Module 4 Enterprise Architecture Development

Enterprise Architecture Development An Enterprise Architecture (Ea) Establishes the Agency-wide Roadmap to Achieve an Agency’s Mission Eas Are “Blueprints” for Systematically and Completely Defining an Organization’s Current (Baseline) or Desired (Target) Environment

Enterprise Architecture Development Eas Are Essential for Evolving Information Systems and Developing New Systems That Optimize Mission Value For Eas to Be Useful and Provide Business Value, Their Development, Maintenance, and Implementation Should Be Managed Effectively

Enterprise Architecture Development An Ea Is A Strategic Information Asset, Which Documents the Mission And, The Information , Technology, and the Processes Required to Perform the Mission An Ea Includes a Baseline Architecture, Target Architecture, and a Sequencing Plan

Enterprise Architecture Development Eas Typically Include Business or Operational Architecture Work Processes and Locations Information or Data Architecture Data or Information Needed to Perform Business Technical or Systems Architecture Technology Standards, It Systems Description

Enterprise Architecture Development EA Process Sections Refer to: A Practical Guide To Federal Enterprise Architecture

Enterprise Architecture Development Obtain Executive Buy-in and Support Ensure Agency Head Buy-in and Support Issue an Executive Enterprise Architecture Policy Obtain Support From Senior Executives and Business Units Establish Management Structure and Control Establish a Technical Review Committee Establish a Capital Investment Council Establish an Ea Executive Steering Committee Appoint Chief Architect Define an Architecture Process and Approach Define the Intended Use of the Architecture Define the Scope of the Architecture Determine the Depth of the Architecture

Enterprise Architecture Development Develop the Baseline Enterprise Architecture Collect Information Generate Products and Populate Ea Repository Develop the Target Enterprise Architecture Develop the Sequencing Plan Identify Gaps Define and Differentiate Legacy, Migration, and New Systems Planning the Migration

Enterprise Architecture Development Use the Enterprise Architecture Integrate the Ea With Cpic and Slc Processes Train Personnel Establish Enforcement Processes and Procedures Maintain the Enterprise Architecture As the Enterprise Evolves Reassess the Enterprise Architecture Periodically Manage Products to Reflect Reality

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Methods Description Module 5 Security Assessment

Security Assessment Information and the Systems That Process It Are Among the Most Valuable Assets of Any Organization Adequate Security of These Assets Is a Fundamental Management Responsibility

Security Assessment Agency Must Ensure That Systems and Applications Provide Appropriate Confidentiality, Integrity, and Availability Protect Information Commensurate With the Level of Risk and Magnitude of Harm Resulting From Loss, Misuse, Unauthorized Access, or Modification

Security Assessment Agencies Must Plan for Security Ensure Appropriate Officials Are Assigned Security Responsibility Authorize (or ”Certify") System Processing Prior to Operations and Periodically As Necessary

Security Assessment The Federal It Security Assessment Framework Provides a Method for Determining the Current Status of Their Security Programs Establishing a Target for Improvements Where Necessary The Framework May Be Used to Assess the Status of Security Controls

Security Assessment The Framework Comprises Five Levels to Guide Assessments of Security Programs and Prioritization of Improvement Efforts

Security Assessment Level 1 Documented Policy Level 2 Documented Procedures Level 3 Implemented Procedures and Controls Level 4 Tested and Reviewed Procedures and Controls Level 5 Fully Integrated Procedures and Controls

Security Assessment Level 1 of the Framework Includes Formally Documented and Disseminated Security Policy Level 2 of the Framework Includes Formal, Complete, Documented Procedures for Implementing Policies Established at Level One

Security Assessment Level 3 of the Framework Includes Security Procedures and Controls That Are Implemented Level 4 of the Framework Includes Routinely Evaluating the Adequacy and Effectiveness of Security Policies, Procedures, and Controls Level 5 of the Framework Includes A Comprehensive Security Program That Is an Integral Part of an Agency’s Organizational Culture

Security Assessment

Security Assessment

Security Assessment

Security Assessment

Security Assessment

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Methods Usage

Methods Usage Most Methods Have Specific Activities to Be Performed Can Be Applied to Specific Projects Need a Team of About 3 - 4 Auditors Requires Training or Understanding of the Method

Methods Usage Since Methods Have Specific Activities Questionnaires Can Be Generated Results Can Be Tabulated Analysis Can Be Formed Quickly From the Results

Methods Usage The Sw-cmm and Sa-cmm Methods Require the Audit Lead Be Specifically Trained

Methods Usage Sample Data Collection Instrument

Audit Reporting

Audit Reporting Audit Report Can Be Briefing Slides or Full Reports Briefing Slides Can Contain Both Summary or Detailed Results

Audit Reporting Sample SA-CMM Summary Results

Audit Reporting Sample SA-CMM Acquisition Risk Management Detailed Results

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Contacts Keith Rhodes Madhav Panwar Phone 1 202 512 6412 Email rhodesk@gao.gov Madhav Panwar Phone 1 202 512 6228 Email panwarm@gao.gov