Application Controls Audit

Application Controls Audit

In an era where most decision-making is driven by data, business entities must pay unwavering attention to the integrity and security of its applications in their business operations. By appointing reputable application control experts, organizations ensure that risks that may cause business disruptions are avoided and that applications are effectively used.

What are Application Controls?

The Information Systems Audit and Control Association (ISACA) defines Application Controls as follows:

The policies, procedures and activities designed to provide reasonable assurance that objectives relevant to a given automated solution (application) are achieved.

Further, these controls may be detective, preventive, or corrective and ensure the proper functioning of the applications and the accuracy, protection, and confidentiality of data and information.

How Are the Application Controls Audits Conducted?

A thorough application controls testing takes place to verify their adequacy and effectiveness. This allows the auditor to identify weaknesses in controls, thereby framing the recommended action plan in identifying gaps and strengthening the existing application controls within an entity. If a business entity is subject to regulation, it aligns the application controls with industry standards such as the Payment Card Industry Data Security Standard (PCI DSS) and General Data Protection Regulation (GDPR).

What are the critical components of Application Controls Audit?

The critical components covered under the application controls audit are as follows:

  1. Access Controls: Evaluate the mechanisms in place to manage user access to the application, including user authentication, authorization, and segregation of duties.
  2. Data Integrity Controls: Assess the processes and controls implemented to maintain the accuracy and completeness of data entered into the application.
  3. Transaction Controls: Review controls related to transaction processing, such as input validation, error handling, and transaction logging.
  4. Change Management Controls: Examine procedures for implementing changes to the application, including testing, approval, and documentation of changes.
  5. Security Controls: Analyze security measures implemented to protect the application from unauthorized access, data breaches, and other security threats.
  6. Monitoring and Logging: Evaluate the effectiveness of monitoring and logging mechanisms to detect and respond to security incidents or unauthorized activities.

What Are the International Standards and Frameworks That Address Application Controls?

Several international standards and frameworks address the application controls enabling the business entities to meet the statutory requirements related to sensitive information and data, including but not limited to:

  1. ISO 27034 guides best practices related to application security management, including comprehensive guidelines.
  2. COBIT, developed by ISACA, is intended to ensure the quality, control, and reliability of information systems by providing a control model that guarantees the integrity of these systems.

What is the Added Value to Business Entities From Applications Controls Audit?

  1. Comply with laws, regulations, resolutions, and instructions issued by the regulatory and administrative authorities.
  2. Ensure that the application controls can mitigate the risks threatening the applications.
  3. Protect systems and data and enhance the business entity’s reputation.

Why Baker Tilly?

  • Expert Insights: our application control experts hold extensive experience across various industries and standards, hence delivering comprehensive gap analysis and recommendation reports
  • Customized Solutions: Tailored audit approach on application controls fits a business entity’s needs and regulatory requirements.
  • Ongoing Support: Offering guidance on implementing recommendations beyond the audit for continuous improvement.

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