IT Application Controls Audit Checklist

An IT application controls audit is vital for evaluating and improving the overall security of a company’s infrastructure. Such audits enable enterprises to test internal control processes as well as meet statutory and regulatory requirements like those under US Sarbanes-Oxley.

Application audits have specific objectives, scope and procedures tailored to each company’s system. To help make the process clearer for you, we have put together an IT audit checklist for assessing application controls.

1. Access control

Access control refers to a set of procedures and controls designed to limit and detect access to critical information systems. It may involve software, biometric devices or physical access controls in controlled spaces. Furthermore, access controls may either be role-based access control (RBAC) granting access based on defined business functions; while attribute-based access requires users to prove certain claims about themselves before being granted entry to data.

These claims can include information such as job titles, security clearance levels and departments of interest. It’s essential that users’ access levels and set of actions are as closely aligned to their job functions as possible.

When employees leave or move positions within an organization, access levels must be terminated to maintain data governance consistency and prevent unauthorized users from exploiting this system to access sensitive information.

2. Audit trails

Audit trails provide a timestamped record of any transaction, work event, product development step, control execution or financial ledger entry. Audit trails enable organizations to keep a detailed log of who viewed or modified sensitive data; whether regular users or privileged ones; who accessed it when and by whom. This enables companies to detect abuse of access rights and assess privileges accordingly.

Most IT systems come equipped with audit logging and audit trail capabilities built-in, but if yours doesn’t, consider adding it as part of your security plan as an add-on feature.

Audit trails are vital in meeting regulations such as SOX and PCI DSS that emphasize accurate record-keeping, data protection and access control. Audit trails also serve as valuable evidence during audits and investigations; to maximize their worth auditors and investigators should review them daily or at least frequently to maximize their value; audit logs should also be examined carefully prior to approval so as to ensure they capture the right information and function as intended.

3. Data loss prevention

Data loss prevention encompasses data in motion, at rest and storage. This includes protecting sensitive information during transit by employing encryption or email security tools; protecting information stored in databases or the cloud from possible breaches; as well as safeguarding any backup tapes that contain it.

Along with protecting their data from breaches, businesses also benefit from this strategy by avoiding fines associated with not meeting regulations such as GDPR, CCPA or HIPAA compliance. Data breaches have a devastating effect on a company’s bottom line as well as brand reputation when reported publicly.

This type of protection requires an integrated combination of best practices, policies and tools that work in concert to detect and prevent threats. These may include pattern matching – which classifies text according to its likelihood that it fits a category of protected data – and exact data matching which matches against known sets. Managed DLP services provide this capability remotely as extensions of your team.

4. Reporting

As IT rapidly develops, businesses increasingly rely on applications to streamline operations and automate processes. Unfortunately, apps may also be susceptible to malicious attacks; an IT audit helps identify such issues while assuring proper security protocols are in place.

As part of an IT audit, in addition to testing application controls, an evaluation should also assess the process for reporting incidents. This ensures that information regarding cybersecurity incidents is promptly documented and the IT team becomes aware of issues quickly. An IT audit should also verify proper protocol is followed when purchasing software – using unlicensed versions could incur severe fines and penalties against your business.

General IT controls apply to all computers; application control tests provide more specific controls that focus on three specific categories of information entering a system: input (authenticating the information entering), processing (verifying transactional data), and output (validating output information). These tests are key in protecting business processes and data.