Control Objectives for Information and related Technology (C OBI T) Overview

1. Control Objectives for Information and related Technology (COBIT)Overview January 31, 2008

2. Overview • Background – trends in auditing affecting IT • Overview of the COBIT • Linkages to other methodologies • Practical application – in audit and IT management

3. Auditing Trends • Audit Committees • Increasing dependence on IT infrastructure to support traditional assurance/auditing • Increasing obligations regarding risk management and control including IT • Uses Internal Audit to give assurance – we adopted COBIT with the ability to use other frameworks as deemed appropriate • Management has a role as well

4. Office of the Auditor General • Comments to entities who have been broad IT assessment include ensuring the following is in place: • IT strategies (not just for centralized IT services) • Integration of IT requirements into business planning • Documented IT risk assessments • Business continuity planning and emergency response planning • Service level performance measures • Processes to build awareness for IT internal controls and security • An IT control framework (recommended to several organizations) – recommended COBIT and being adopted

5. STRATEGIC VALUE ALIGNMENT DELIVERY RISK PERFORMANCE MANAGEMENT MEASUREMENT www.itgi.org www.itgi.org RESOURCE MANAGEMENT COBIT Overview1IT Governance Institute • Enterprise governance is a set of • responsibilities and practices exercised by the board and executive management with the goal of: • Providing strategic direction • Ensuring that objectives are achieved • Ascertaining that risks are managed appropriately • Verifying that the enterprise’s resources are used responsibly 1This information and that on the following slides is consolidated from information developed by the IT Governance Institute.

6. Major COBIT Elements • IT Processes • Business Requirements • IT Resources

7. IT Processes • 1. COBIT describes the IT life cycle with the help of four domains: • Plan and Organize • Acquire and Implement • Deliver and Support • Monitor and Evaluate • In each domain are processes are series of activities. There are 34 processes specifying what the business needs to achieve its objectives. • The last activities are actions that are required to achieve measurable results with the processes.

8. Plan and Organise PO1 Define a strategic IT plan. PO2 Define the information architecture. PO3 Determine technological direction. PO4 Define the IT processes, organisation and relationships. PO5 Manage the IT investment. PO6 Communicate management aims and direction. PO7 Manage IT human resources. PO8 Manage quality. PO9 Assess and manage IT risks. PO10 Manage projects. Acquire and Implement Plan and Organise IT Processes Deliver and Support Monitor and Evaluate

9. Acquire and Implement AI1 Identify automated solutions. AI2 Acquire and maintain application software. AI3 Acquire and maintain technology infrastructure. AI4 Enable operation and use. AI5 Procure IT resources. AI6 Manage changes. AI7 Install and accredit solutions and changes. Plan and Organise Acquire and Implement IT Processes Deliver and Support Monitor and Evaluate

10. Deliver and Support DS1 Define and manage service levels. DS2 Manage third-party services. DS3 Manage performance and capacity. DS4 Ensure continuous service. DS5 Ensure systems security. DS6 Identify and allocate costs. DS7 Educate and train users. DS8 Manage service desk and incidents. DS9 Manage the configuration. DS10 Manage problems. DS11 Manage data. DS12 Manage the physical environment. DS13 Manage operations. Acquire and Implement Plan and Organise IT Processes Deliver and Support Monitor and Evaluate

11. Monitor and Evaluate Acquire and Implement Plan and Organise ME1 Monitor and evaluate IT performance. ME2 Monitor and evaluate internal control. ME3 Ensure compliance with external requirements. ME4 Provide IT governance. IT Processes Monitor and Evaluate Deliver and Support

12. Deals with information being relevant and pertinent to the business process as well as being delivered in a timely, correct, consistent and usable manner Effectiveness Concerns the provision of information through the optimal (most productive and economical) use of resources Efficiency Confidentiality Concerns the protection of sensitive information from unauthorised disclosure Relates to the accuracy and completeness of information as well as to its validity in accordance with business values and expectations Integrity Relates to information being available when required by the business process now and in the future. It also concerns the safeguarding of necessary resources and associated capabilities. Availability Deals with complying with those laws, regulations and contractual arrangements to which the business process is subject, i.e., externally imposed business criteria as well as internal policies Compliance Reliability Relates to the provision of appropriate information for management to operate the entity and to exercise its fiduciary and governance responsibilities Business Requirements

13. IT Resources • Applications • Information • Infrastructure • People

14. Use of COBIT in Internal Audit • Annual Risk Assessment (developed with Grant Thornton) • Can audit difference ways: • a application system (all processes) • a process (e.g. IT investment management across a unit or the campus) • a resource component (e.g. infrastructure) and/or a business requirement (e.g. security) • Maps to other frameworks Flexible yet defensible

15. Use of COBIT in Management • Seeing an increase in formal adoption of frameworks. • Supporting documentation being developed for management. • Flexible adoption – one size does not fit all. • Can be blended with other framework.

16. COSO COBIT ISO 17799 ISO 9000 ITIL WHAT SCOPE OF COVERAGE Organisations will consider and use a variety of IT models, standards and best practices.

17. IT Process Capability Maturity Scorecard—Example

18. BUSINESS OBJECTIVES AND GOVERNANCE OBJECTIVES INFORMATION C O B I T F R A M E W O R K ME1 Monitor and evaluate IT performance. ME2 Monitor and evaluate internal control. ME3 Ensure compliance with external requirements. ME4 Provide IT governance. PO1 Define a strategic IT plan. PO2 Define the information architecture. PO3 Determine technological direction. PO4 Define the IT processes, organisation and relationships. PO5 Manage the IT investment. PO6 Communicate management aims and direction. PO7 Manage IT human resources. PO8 Manage quality. PO9 Assess and manage IT risks. PO10 Manage projects. Integrity Efficiency Effectiveness Availability Compliance Confidentiality PLAN AND ORGANISE MONITOR AND EVALUATE Reliability IT RESOURCES DS1 Define and manage service levels. DS2 Manage third-party services. DS3 Manage performance and capacity. DS4 Ensure continuous service. DS5 Ensure systems security. DS6 Identify and allocate costs. DS7 Educate and train users. DS8 Manage service desk and incidents. DS9 Manage the configuration. DS10 Manage problems. DS11 Manage data. DS12 Manage the physical environment. DS13 Manage operations. Applications Information Infrastructure People DELIVER AND SUPPORT AI1 Identify automated solutions. AI2 Acquire and maintain application software. AI3 Acquire and maintain technology infrastructure. AI4 Enable operation and use. AI5 Procure IT resources. AI6 Manage changes. AI7 Install and accredit solutions and changes. ACQUIRE AND IMPLEMENT

19. Questions • Contact: • Ian Simpson • Systems Auditor • 492-2980