Shatter Silos to Identify More Risk

If you want to increase the effectiveness of your audits and find risks that haven’t been identified before, you need to shatter your silos so you can identify more risk.

Too often, audits are performed on one process, one category, or one system: Earning Commissions, Windows Servers, or Wire Transfer. Each one of those is a separate silo (one for oats, one for corn, one for rice).

Quote of the Weak: No end goal

The other day I was in a meeting to discuss a new analytics project and discovered the team had no end goal.

When the discussion started with the software to be used, I knew they were already off track.

Another Nail in ACL’s Coffin

Diligent’s acquisition of Galvanize (ACL) is another nail in the ACL analytics coffin.

First, ACL acquired another company and created Galvanize. And we were told governance, risk, and compliance (GRC) would never be the same.

And I told you that ACL analytics would never be the same. In fact, I predicted that this acquisition meant that ACL analytics was dying (when I say ACL analytics, I’m referring to the Windows desktop version that they built the original company on).

For more on this, see ACL Officially Changes Name & Spots  and Is ACL Analytics Dying?

Blogging about Internal Audit (10 tips)

A looooooong time ago, Leeann asked me to write a post about blogging about internal audit, so here goes. Most of this post applies to blogging on any subject, too.

First of all, there is a dearth of good internal audit blogs, and even less good IT audit blogs. So if you’re thinking about, we sure could use you in the blogsphere!

Writing a blog is hard work, and you often get tired of it. Life finds a way to get in the way. This is my 11th year of the blog (see the first post here), which, ironically, was written by skyyler. Fortunately, we’ve gotten better since that first year.

Blogging about internal audit is like a moon shining in a dark place… here’s my 10 tips…

Mack-the-Auditor Gets Audited! Part 2

This is the second of 3 posts; this post describes the audit, some speed bumps, and the audit results.

Read the first post here, which provides the background on the audit and the audit’s scope.

Mack-the-Auditor Gets Audited! Part 1

Usually, I’m the one doing the auditing, but this time, I (Mack) was the one who was audited.

It was a great experience for me.

Well, sort of. No one likes being audited (ahem). But it gave me a fresh perspective of how others feel when I audit them.

This is the first of 3 posts; this post contains some background info on the project that was audited, and the second one discusses the audit and the results, and in the third post, I describe my perspective on the whole thing, and some takeaways.

Auditor Struggles, Part 4

This is Part 4 of a Case File series that describes how real auditors tried to apply questionable methods to auditing and data profiling. See Part 1, Part 2, Part 3.

Does the Process X team provide metrics around their process?” I asked.

“Yes,” the most senior auditor replied, showing me the web page where the Process X metrics were displayed.

After reviewing the page briefly, I said, “I see they do metrics by month. You have a year’s data; are you planning to understand how they prepare their metrics and re-calculate them to see if you get the same numbers?”

Auditor Struggles, Part 3

This is Part 3 of a Case File series that describes how real auditors tried to apply questionable methods to auditing and data profiling. See Part 1 and Part 2.

I looked at the third page of the handout and asked, “What is this?”

“A list of Active Directory (AD) groups and the user IDs in each group. I searched AD for any group containing the system name,” the junior auditor said, “and identified these 6 groups. I then downloaded all the members of these groups from AD into Excel.”

Auditor Struggles, Part 1

Some auditors struggle with basic auditing. So when these auditors try to data analysis, well you can imagines how that goes.

I recently met with a team of auditors to give them input on what data profiling would be appropriate to perform. And what analytics might be insightful.

This is Part 1 of a 4-part Case File series that describes how real auditors tried to apply questionable methods to auditing and data profiling. Do not try these methods at home or work. Don’t even dream about them, awake or asleep. 

Job Automation Quiz

Test how much you know about automation technologies by taking the job automation quiz at Financial Management magazine.

Steal from Agile to Increase Audit Analytics

To increase the amount and depth of the analytics performed, steal some agile methods, and apply them to your audits.

If you’re not familiar with agile methods, check out the first 5 topics listed here (just click Next at the bottom of each page; the topics are quick to the point and full of pictures).

Briefly, agile projects are performed in cycles, or iterations, rather than in a long, linear-waterfall fashion, which is: do all planning, then field work, then reporting. Each iteration of the project creates some value and includes feedback, which is used in the next iteration to increase the value of the project.

Create a Team for Audit Analytics? Part 3

In the previous post, Create a Team for Audit Analytics? Part 2, I explored the pros and cons of expecting all auditors to develop a level of data and analytic proficiency.

These auditors would continue to do audit testing that involves analytics as well as testing that does not involve analytics. In addition to keeping up their business skills, they would be learning and upgrading their data analytic skills.

In the first post of this series, I reviewed some of the pluses and minuses of creating a dedicated analytics team.

However, a third option exists, which is sort of a hybrid between having dedicated analytic auditors doing all the analytic work and requiring everyone to increase and develop their data and analytic skills.

Let’s explore the hybrid method in this post, and wrap up the series with a few final thoughts.

This is the third post of a 3-part series…

Create a Team for Audit Analytics? Part 2

In the previous post, Create a Team for Audit Analytics? Part 1, I explored the pros and cons of developing an analytics team.

This team consists of analytic auditors who are dedicated to analytic projects; they would NOT typically manage audits or testing that did not include analytics.

In this post, let’s explore another option for managing and growing analytics in an audit department — expecting all auditors to develop a level of data and analytic proficiency.

This is the second post of a 3-part series…

 

Create a Team for Audit Analytics? Part 1

Once your audit team has proven the value of doing analytics consistently, the next question is: Do we create an analytics team and have the team do all (or the majority) of the analytics?

Or should we expect all auditors to develop some levels of analytics proficiency?

Of course, this question often comes a bit further down the trail on the analytics journey, but I think the sooner it is decided, the better.

This is the first post of a 3-part series…

The Analytic Staircase for Auditors

Building a successful audit analytics program is like climbing a staircase.

The staircase is a set of steps that consist of several items having increasing levels of maturity.

The staircase steps not only help you build your program, but enable you to measure that maturity.

As you view the staircase graphic, mentally insert the word “analytics” before each step.

5 Things We Need from ACL in 2018

Here’s the 5 things I’m hoping will change in 2018 regarding ACL.

They are all related to each other and feed off each other…

Interesting.

IIA Analytics Article Dead Wrong

A recent IIA article on building an analytics function in internal audit is dead wrong.

At least on one major point, anyway. And it’s a big one.

As the tombstone reads, this point is D.O.A (dead on arrival, or more specifically, dead on analytics).

The article, Building a data analytics program, requires IIA membership to view, and is located at https://iaonline.theiia.org/2017/Pages/Building-a-Data-Analytics-Program.aspx (that’s actually good, as it means a lot fewer people will ever read it).

No Analytics, No Audit Department

If YOUR audit department doesn’t embrace data, analytics, and automation eventually, your audit department will NOT exist.

No data, no analytics. No analytics, no automation. Eventually, no audit department.

Editor Note: This post really applies to all departments in a company, but mainly I’m addressing auditors, but you might want to read between the business lines….

By embrace, I don’t mean have one or two auditors working on this. I mean the entire department.

Before you cite all the regulatory requirements mandating the existence of an audit department in companies, having an audit department in name only won’t cut it.

Having an inept audit department will not be acceptable to regulators, and it shouldn’t be acceptable to company management either. Or Audit Committees!

Companies need skilled and efficient auditors that can do the heavy lifting, and this need will only increase.

Audit Automation is NOT all Automation

Some Chief Audit Executives (CAEs) and audit managers tend to think that audit automation is a set-it-and-forget-it process. NOT.

In this post, I want to expand on a problem I mentioned in an earlier post , 10 Signs Mgmt Doesn’t Really Support Analytics.

Audit management too often thinks that once a process or an audit is automated, ALL auditor/staff hours previously spent performing that process can be reassigned elsewhere.

That is not the case at all.

No Metrics, Little Analytics

If your department doesn’t track metrics on your analytics, you are probably not doing analytics or you are making little progress in analytics.

In either case, its obvious that analytics isn’t very important to your management.

Which is one of the points I made in my post, 10 Signs Mgmt Doesn’t Really Support Analytics.

So far, I have encountered very few audit departments that track meaningful metrics about their analytics.

Counting the number of projects that include analytics isn’t enough.

10+ Signs Mgmt Doesn’t Really Support Analytics

Your management says it wants more analytics, but does it really support analytics? Here’s 10+ signs that indicate that your mgmt:

• Does NOT knows what it takes to get analytics off the ground
• Believes that analytics multiply like rabbits, naturally
• Is NOT willing to make the adjustments required to deliver and sustain real value.

New IT Auditor (and WannaBEs) Master List

Here’s a list of all my posts to-date related to becoming or growing as an IT Auditor, all in one place for easy reference.
I’ll add other posts as they are written.

Audit Management Sometimes Sucks

When internal auditors (or those pretending to be such) do poor work and don’t follow the appropriate audit and IT standards, they are unprofessional. However, I put the blame at the feed of audit management.

Do you have User IDs Hidden in the Cloud?

It’s 10 o’clock in the cloud. Do you know where all your user IDs are? Are some hidden in the cloud?

Cloud security if often cloudy because it’s not on premise where you can control it easier.

That means you may have powerful user IDs in the cloud that your security team knows nothing about, which means….

Mack Falls Prey to Phishing Email

It finally happened: I fell prey to a phishing email.

I actually clicked a link.

At work, no less. Not good.

Some of my Favorites

Since some of you are newer to the blog, I thought I’d bring a couple of my favorite posts to your attention.

Behind Locked Doors: Conclusion

Most of the team deployed to the 2 departments and started emptying wastebaskets in the ‘wastebasket audit‘ exercise, collecting all the trash in large carts on wheels.

Two others were posted as look-outs in the main hallways outside the target department.

I carried my black bag of tools and approached THE door.

I pulled out my favorite flat-head screwdriver. Originally, I was going to remove the closing arm at the top of the door and then pry the hinge pins out of the hinges.

This is the fifth and final post in a series. See the previous post, Behind Locked Doors: Part 4. Start with Behind Locked Doors: Part 1.

Don’t Use GRC app to do Workpapers!

I consulted with a company that implemented a new GRC package, and unfortunately they are using an application designed for GRC to do audit workpapers.

That wasn’t the only move that was questionable…

Server Audit for the Dauntless

If you’re looking for an insightful server audit, and you’re dauntless, you might want to jump on this train.

First, why do you need to be dauntless?

Because you’re going to need to obtain your data from a number of different sources; the bigger your company, the more likely you’ll need to call on and question more than a handful of people.

Because comparing and tracking all the servers that are on one list, but not another can be a challenge.

Because it his highly LIKELY that you WILL find something and the server team will not be happy.

FREE Infosec & Web Pentesting Education

Security Monkey posted that PentesterLab has some great resources that provide training on pentesting, like:

• Basics of Web
• Basics of HTTP
• Detection of common web vulnerabilities:
• Basics of fingerprinting
• and more! (like Linux Host Review)

Evaluating Risk in the Dark

When you evaluate the risk of a vulnerability, do you do it in the dark?

Or do you take into account other factors that might affect the risk?

What if one of the factors is an existing audit issue that has not been remediated?

Master List of CISA Articles

To make these posts easier to find (and link to), here’s a list of all the CISA-related posts on this blog, in alphabetical order.
I’ll add other CISA posts as they are written.

How to be an Irritating Auditor

If you need to read about how to be an irritating auditor, you obviously haven’t been auditing very long. According to most auditees, that quality comes with the territory, right? I hope not!

FREE CISA Glossary

ISACA has a free glossary of IT, audit, and security terms that is not only helpful in studying for the CISA exam, but is a good reference guide for new and experienced auditors.

How to Audit User Access

When checking system access, make sure you look at all the different items that affect the user’s access. For example, the user might need one or more of the following:

• Application ID
• Application role or group
• Membership in an local server group, Active Directory (AD) group, or UNIX Group
• Access to the application’s share and/or folder on the server
• Database ID
• Database role, including access permissions (read/write)
• Other permission (from a home-grown application code or enterprise identify management system)

CISA vs. CIA Certification

If you’re an IT auditor (or want to be one) and don’t have any audit certifications, which certification should you get, the CISA or the CIA? If you want to get both, which one do you get first?

Full disclosure: I have the CISA, but not the CIA. Back when the CIA was 4 exams, I studied for all the CIA exams except the financial exam, but ended up not taking any of the exams. I also have the CISSP.

IT Admin vs. IT Auditor

IT admins and IT auditors often don’t see eye-to-eye, and they don’t usually think their goals are similar.

The IT auditor just has to work a little harder to convince the IT admin of that. I’ve worn both hats, so I know it can be done.

New IT Auditor Needs Help!

A new IT auditor needs some help dealing with database patching issues and how far you need to dive into technology during an IT audit.

Take a moment to read his comment and add your thoughts. I’ve put in my 2 cents. Let’s get a good discussion going.

I think any auditor can chime in, as audit scope and audit limitations are not unique to IT audit.

Dinesh’s comment appears in What IT Auditors Ought to Know – and Don’t!

PSPad: Great Text File Audit Tool

PSPad is a great text editor and search tool, so by default, it’s a great audit tool, and it’s free. It can also handle a million lines of text–literally. Are you interested yet? It is also a great file diff/compare tool I’ve ever seen.

PSPad works with text files, such as those ending in TXT or CSV, or any text-based file (like an ini file). It works with DOC files too.

I’ll explain how to do the following with PSPad:

• Search a file (find all lines containing X)
• List all occurrences/matches of a search term
• Export a list of occurrences
• Compare 2 documents (diff)
• Download & install PSPad

Audit and IT Audit for Dummies

Here’s some links for Audit and IT Audit for dummies, one from the IIA, the other from ISACA. Most of them do not require being a member or logging in.

While these articles are not extensive, they will point new auditors in the right direction, and provide a refresher for the rest of us.

No Bad Audit Reports Allowed?

It’s getting to the point where some audit directors are saying, “No bad audit reports allowed.” In other words, don’t shoot the messenger, just the message. What follows is an experience from one of my audit colleagues…

First, a couple “I know” statements…I know auditors are supposed to be helpful and friendly. I know auditors are supposed to add value. I know auditors need to be careful about giving only bad news; we should also note in our report what the auditee is doing right (if anything). I know that it’s hard for auditees to get hammered again and again by audit reports.

May –> Audit Awareness Month

May is Audit Awareness Month, so if you want to host an event to promote audit at your organization, you’re short on time.

I wrote about this last year, and all the links on that post are still good, so see May = Audit Awareness Month for ideas.

Hey, I’m recycling last year’s post, so this must be a GREEN blog!

How Virtualization Changes Audits

If you haven’t determined how server virtualization changes your audit plans, you better get moving. I’m not just talking about a virtualization audit (more on that later), but the audits that you typically do every year or on a multi-year cycle.

For example, if every year you do an audit on all networks, servers, applications, and databases that host your key financial reporting or PHI systems, you’re looking at policies and procedures, configuration management, security (including patching), user access, logging, and so on. But do you first consider whether those assets run on virtualized servers?

Audit Tips for the New Year

Here’s a couple tips for making your IT audits a bit easier in the new year.

First, for those systems that don’t record the creation or deletion date of user accounts (or folders, permissions, or whatever), get a list of all accounts from IT in January. Then when you do the audit later in the year, get a new list and compare it with the January list. The new and deleted accounts will jump out at you.

What IT Auditors Ought to Know – and Don’t!

Here’s my list of IT/security basics that I think IT auditors ought to know. If you can’t understand and audit these items, you do not know enough about technology to avoid having the wool pulled over your irises (not matter how good an auditor you are). The list is in no particular order.

If you’re a CISA or CISSP and you don’t know the following, I think you have some work to do.

Get FREE Audit Work Plans at AuditNet

If you’re looking for FREE audit work plans, AuditNet.org is probably your best bet.

You can get a free account that allows you to access a limited number of work plans, usually basic ones. A premium account gives you access to all content . See their Subscription Plans for more info, and note that they call work plans ‘audit templates’.

If you have an ACL support agreement, you may be able to access AuditNet for FREE!

Last time I looked, over 100 work plans were free, and a total of 2600 were available.

IIA Basics for Auditors

The  Institute of Internal Auditors (IIA) has back-to-basics articles for new auditors (and like Dummies books, the topics can be a reference for the rest of us). Even security pros might want to read a few of these to better understand their auditors, or how those auditors should be doing their jobs.

The topics are as follows (no special order):

Conclusion: Audit Server Disappeared

In Case File: Audit Server Disappeared, I noted that a friend of mine learned that  IT had, on its own prerogative, wiped a server belonging to Internal Audit because “it never appeared to be used.”

Some of you already commented on some of the issues involved in this incident and the normal IT activities that should have prevented this incident (or at least alerted IT that something was wrong). Let’s review those comments and I’ll add some other details and comments.

Simple Audit Success Formula

I am often amused how common sense is paraded as a solution (aka “how to write a post about anything”).

When you consider the bullet points in 5 Tips to Survive a Social Media Disaster, you can see that those actions can be applied to many issues, including one of our favorite subjects, auditing.

Tribute to Willy Wonka

Who thinks the IIA is stuffy? No one, if Mike Jacka has anything to say about it…

A song to be sung to auditees…