1. Chapter 8
Information Systems Controls for System Reliability— Part 1: Information Security
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2. Learning Objectives
Discuss how the COBIT framework can be used to develop sound internal control over an organization’s 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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3. AIS Controls COSO and COSO-ERM address general internal control
COBIT addresses information technology internal control
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4. 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.
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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5. COBIT Framework Information Criteria
Plan & Organize
Acquire & Implement
Deliver & Support
Monitor & Evaluate
Information
Criteria
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6. 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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7. 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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8. 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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9. Trust Services Framework
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10. 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 company’s activities.
The accuracy of an organization’s 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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11. Management’s 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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12. Time-Based Model Combination of detective and corrective controls
P = the time it takes an attacker to break through the organization’s 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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13. Steps in an IS System Attack
Conduct Reconnaissance
Attempt Social Engineering
Scan & Map Target
Research
Execute Attack
Cover Tracks
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14. Mitigate Risk of Attack
Preventive Control
Detective Control
Corrective Control
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15. 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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16. Authentication vs. Authorization
Authentication—verifies who a person is
Something person knows
Something person has
Some biometric characteristic
Combination of all three
Authorization—determines what a person can access
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17. Network Access Control (Perimeter Defense)
Border router
Connects an organization’s 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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18. Internet Information Protocols
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19. 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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20. Detective Controls Log Analysis Intrusion Detection Managerial Reports
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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21. 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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22. Computer Incident Response Team
Recognize that a problem exists
Containment of the problem
Recovery
Follow-up
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23. New Considerations Virtualization Cloud Computing Risks
Multiple systems are run on one computer
Cloud Computing
Remotely accessed resources
Software applications
Data storage
Hardware
Risks
Increased exposure if breach occurs
Reduced authentication standards
Opportunities
Implementing strong access controls in the cloud or over the server that hosts a virtual network provides good security over all the systems contained therein
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