Jointly, physical and logical security can significantly reduce the risk of irregular and illegal acts. Within this context, superior IT physical security is a major larceny deterrent for certain hardware. For example, bolting a personal computer to a fortified mount minimizes the threat of thief. Whereas, deploying general logical security practices usually requires adequate administration to reduce the risk of blackmail based on malware threats. Specifically; anti-virus software, firewalls as well as intrusion detection systems and/or intrusion prevention systems should be installed and monitored to assist in minimizing the risk of compromising the entity’s IT architecture.
Given the greater potential for an IT software related irregular or illegal act, an IT auditor should pursue understanding the backdoors and trapdoors in the entity’s computer processing environment and evaluate whether adequate preventive and detective controls are deployed. Furthermore, when performing irregular or illegal act agreed-upon procedures assessments, an IT auditor should determine if management designed adequate encryption requirements for sensitive data.
“View Part I of the Irregularities and Illegal Acts Agreed-Upon Procedures Assessments series here“