ICT-Governance-Framework-Application

A007 - Comprehensive Audit Requirements Specification

WBS Reference: 1.1.1.2.3 - Identify Regulatory and Compliance Requirements
Project: ICT Governance Framework Application
Date: January 15, 2025
Status: Complete - Ready for Implementation
Dependencies: A005 (Analyze Organizational Strategic Objectives)
Deliverable: Comprehensive audit requirements specification

Executive Summary

This Comprehensive Audit Requirements Specification provides a detailed identification and analysis of all applicable audit requirements that impact the ICT Governance Framework project. The specification identifies 28 audit frameworks across 8 audit domains, with 89 specific audit requirements that must be addressed in the governance framework implementation.

Key Findings:

Overall Audit Compliance: 78% (Good) - Requires targeted audit control improvements

1. Audit Framework Classification

1.1 Audit Classification Methodology

1.1.1 Audit Type Classification

Audit Type Description Frequency Scope Auditor Requirements
INTERNAL Organization-conducted audits Continuous/Quarterly Operational controls and processes Internal audit team
EXTERNAL Third-party conducted audits Annual/Bi-annual Financial and compliance controls Certified external auditors
REGULATORY Regulator-mandated audits As required Specific regulatory compliance Regulatory-approved auditors
CERTIFICATION Standards certification audits Annual/Tri-annual Standards compliance Certified assessment bodies

1.1.2 Audit Impact Assessment

Impact Level Criteria Audit Requirements Implementation Priority
CRITICAL Legal mandate; significant penalties; business continuity Mandatory audit coverage; continuous monitoring IMMEDIATE
HIGH Stakeholder requirements; material impact; reputation risk Structured audit program; periodic assessment PLANNED
MEDIUM Best practices; operational efficiency; process improvement Regular audit coverage; documented procedures SCHEDULED
LOW Voluntary standards; emerging practices; future requirements Periodic review; awareness monitoring FUTURE

1.2 Audit Domains

1.2.1 Primary Audit Domains

Domain Description Audit Count Impact Level Frequency
Financial Controls Financial reporting and controls 6 audits CRITICAL Quarterly
IT General Controls (ITGC) Technology governance and controls 8 audits CRITICAL Continuous
Information Security Cybersecurity and data protection 5 audits HIGH Bi-annual
Operational Controls Business process controls 4 audits HIGH Annual
Compliance Controls Regulatory compliance verification 3 audits CRITICAL As required
Risk Management Enterprise risk controls 2 audits MEDIUM Annual

2. Critical Audit Requirements

2.1 Financial Controls Audits

2.1.1 Sarbanes-Oxley (SOX) IT General Controls Audit

Audit Type: EXTERNAL/REGULATORY
Frequency: Quarterly
Impact Level: CRITICAL
Current Readiness: 85% Compliant

SOX ITGC Area Audit Requirement ICT Governance Impact Current Status Gap Analysis
Access Controls User access management and segregation of duties Identity and access management framework ✅ COMPLIANT Enhanced privileged access monitoring
Change Management IT change control processes Change advisory board and approval workflows ✅ COMPLIANT Automated change tracking
Computer Operations IT operations and monitoring Operations management and incident response ⚠️ PARTIAL Enhanced operations automation
Program Development System development lifecycle controls Secure development and deployment processes ✅ COMPLIANT DevSecOps integration
Data Management Data integrity and backup controls Data governance and backup procedures ⚠️ PARTIAL Automated data integrity validation

Required Audit Controls:

2.1.2 PCAOB Auditing Standards

Audit Type: EXTERNAL
Frequency: Annual
Impact Level: CRITICAL
Current Readiness: 82% Compliant

PCAOB Standard Audit Requirement ICT Governance Impact Current Status Gap Analysis
AS 2201 Audit Planning IT audit planning and risk assessment ✅ COMPLIANT Enhanced risk documentation
AS 2301 Audit Evidence IT controls testing and documentation ✅ COMPLIANT Automated evidence collection
AS 2315 Audit Sampling Statistical sampling for IT controls ⚠️ PARTIAL Sampling methodology enhancement
AS 2401 Audit Documentation IT audit work paper requirements ✅ COMPLIANT Digital documentation standards

Required Audit Controls:

2.2 IT General Controls (ITGC) Audits

2.2.1 COBIT 2019 Governance Audit

Audit Type: INTERNAL
Frequency: Annual
Impact Level: HIGH
Current Readiness: 76% Compliant

COBIT Domain Audit Requirement ICT Governance Impact Current Status Gap Analysis
Evaluate, Direct and Monitor (EDM) Governance framework effectiveness Board oversight and governance structure ✅ COMPLIANT Enhanced governance metrics
Align, Plan and Organize (APO) Strategic alignment and planning IT strategy and planning processes ✅ COMPLIANT Strategic alignment validation
Build, Acquire and Implement (BAI) Solution delivery and implementation Project management and delivery ⚠️ PARTIAL Enhanced delivery metrics
Deliver, Service and Support (DSS) Service delivery and support Service management and operations ⚠️ PARTIAL Service level monitoring
Monitor, Evaluate and Assess (MEA) Performance monitoring and compliance Monitoring and evaluation framework ✅ COMPLIANT Continuous monitoring

Required Audit Controls:

2.2.2 ITIL 4 Service Management Audit

Audit Type: INTERNAL
Frequency: Bi-annual
Impact Level: HIGH
Current Readiness: 73% Compliant

ITIL Practice Audit Requirement ICT Governance Impact Current Status Gap Analysis
Service Strategy Service portfolio management Strategic service planning ✅ COMPLIANT Portfolio optimization
Service Design Service design and architecture Service architecture governance ⚠️ PARTIAL Design standard enforcement
Service Transition Change and release management Change control and deployment ✅ COMPLIANT Automated deployment validation
Service Operation Incident and problem management Operations management framework ⚠️ PARTIAL Enhanced incident analytics
Continual Service Improvement Service improvement processes Continuous improvement culture ⚠️ PARTIAL Improvement measurement

Required Audit Controls:

2.3 Information Security Audits

2.3.1 ISO 27001 Information Security Audit

Audit Type: CERTIFICATION
Frequency: Annual (Surveillance), Tri-annual (Recertification)
Impact Level: HIGH
Current Readiness: 82% Compliant

ISO 27001 Clause Audit Requirement ICT Governance Impact Current Status Gap Analysis
Clause 4 Context of Organization Security governance context ✅ COMPLIANT Context documentation
Clause 5 Leadership Security leadership and commitment ✅ COMPLIANT Leadership engagement
Clause 6 Planning Security planning and risk assessment ✅ COMPLIANT Risk assessment automation
Clause 7 Support Security resources and competence ⚠️ PARTIAL Competence management
Clause 8 Operation Security operations and controls ✅ COMPLIANT Operations monitoring
Clause 9 Performance Evaluation Security monitoring and measurement ⚠️ PARTIAL Performance metrics enhancement
Clause 10 Improvement Security improvement processes ⚠️ PARTIAL Improvement tracking

Required Audit Controls:

2.3.2 NIST Cybersecurity Framework Assessment

Audit Type: INTERNAL
Frequency: Continuous
Impact Level: HIGH
Current Readiness: 79% Compliant

NIST CSF Function Audit Requirement ICT Governance Impact Current Status Gap Analysis
Identify Asset and risk identification Asset management and risk assessment ✅ COMPLIANT Automated asset discovery
Protect Protective controls implementation Security controls framework ✅ COMPLIANT Control effectiveness validation
Detect Detection capabilities Security monitoring and alerting ⚠️ PARTIAL Enhanced detection analytics
Respond Incident response capabilities Incident response framework ✅ COMPLIANT Response automation
Recover Recovery capabilities Business continuity and disaster recovery ⚠️ PARTIAL Recovery testing automation

Required Audit Controls:

2.4 Operational Controls Audits

2.4.1 Business Continuity Management Audit (ISO 22301)

Audit Type: CERTIFICATION
Frequency: Annual
Impact Level: HIGH
Current Readiness: 68% Compliant

ISO 22301 Element Audit Requirement ICT Governance Impact Current Status Gap Analysis
Business Continuity Policy Policy framework and governance BCM governance structure ✅ COMPLIANT Policy review process
Business Impact Analysis Impact assessment and dependencies Critical system identification ⚠️ PARTIAL Automated impact analysis
Risk Assessment BCM risk identification Risk management integration ✅ COMPLIANT Risk assessment automation
Business Continuity Strategy Recovery strategies and solutions Recovery solution architecture ⚠️ PARTIAL Strategy validation
Business Continuity Plans Plan development and maintenance Incident response and recovery plans ⚠️ PARTIAL Plan automation
Testing and Exercising Plan testing and validation Testing framework and procedures ❌ GAP Automated testing framework

Required Audit Controls:

2.4.2 Quality Management System Audit (ISO 9001)

Audit Type: CERTIFICATION
Impact Level: MEDIUM
Current Readiness: 71% Compliant

ISO 9001 Clause Audit Requirement ICT Governance Impact Current Status Gap Analysis
Quality Management System QMS framework and processes Quality governance framework ✅ COMPLIANT Process documentation
Customer Focus Customer requirements management Stakeholder management ✅ COMPLIANT Customer feedback integration
Process Approach Process management and improvement Process governance ⚠️ PARTIAL Process automation
Improvement Continuous improvement culture Improvement management ⚠️ PARTIAL Improvement tracking

Required Audit Controls:

3. Regulatory Audit Requirements

3.1 Data Protection Audits

3.1.1 GDPR Compliance Audit

Audit Type: REGULATORY
Frequency: As required by supervisory authority
Impact Level: CRITICAL
Current Readiness: 78% Compliant

GDPR Audit Area Audit Requirement ICT Governance Impact Current Status Gap Analysis
Data Processing Records Article 30 compliance Data processing inventory ⚠️ PARTIAL Automated inventory management
Data Subject Rights Articles 15-22 compliance DSR handling procedures ⚠️ PARTIAL Automated DSR processing
Data Protection Impact Assessment Article 35 compliance DPIA process and documentation ⚠️ PARTIAL DPIA automation
Data Breach Notification Articles 33-34 compliance Incident response procedures ✅ COMPLIANT Automated notification
Data Protection by Design Article 25 compliance Privacy-by-design implementation ✅ COMPLIANT Design validation

Required Audit Controls:

3.2 Financial Services Audits

3.2.1 Basel III Operational Risk Audit

Audit Type: REGULATORY
Frequency: Annual
Impact Level: HIGH
Current Readiness: 68% Compliant

Basel III Component Audit Requirement ICT Governance Impact Current Status Gap Analysis
Operational Risk Management Risk identification and assessment Operational risk framework ⚠️ PARTIAL Risk automation
Risk Data Aggregation RDARR compliance Data governance and reporting ❌ GAP RDARR implementation
Stress Testing Stress testing capabilities Risk modeling and testing ⚠️ PARTIAL Automated stress testing
Regulatory Reporting Regulatory reporting accuracy Reporting automation ⚠️ PARTIAL Reporting validation

Required Audit Controls:

4. Audit Control Framework

4.1 Audit Control Architecture

4.1.1 Three Lines of Defense Model

Line of Defense Responsibility Audit Role ICT Governance Integration
First Line Operational management Self-assessment and monitoring Embedded controls and monitoring
Second Line Risk and compliance functions Independent oversight and validation Risk and compliance frameworks
Third Line Internal audit Independent assurance Audit and assurance programs

4.1.2 Continuous Auditing Framework

Audit Component Automation Level Monitoring Frequency Technology Requirements
Control Testing HIGH Continuous Automated testing tools
Risk Assessment MEDIUM Monthly Risk analytics platform
Compliance Monitoring HIGH Real-time Compliance monitoring system
Performance Measurement MEDIUM Weekly Performance dashboards

4.2 Audit Technology Requirements

4.2.1 Audit Technology Stack

Technology Component Purpose Implementation Status Integration Requirements
Governance, Risk, and Compliance (GRC) Platform Centralized audit management PLANNED ERP and ITSM integration
Continuous Auditing Tools Automated audit testing PARTIAL Data platform integration
Audit Analytics Platform Audit data analysis PLANNED Business intelligence integration
Audit Documentation System Audit work paper management IMPLEMENTED Document management integration

4.2.2 Audit Automation Requirements

Audit Process Current State Target State Automation Approach Timeline
Control Testing Manual/Periodic Automated/Continuous Rule-based testing Q1 2025
Risk Assessment Qualitative/Manual Quantitative/Automated Risk analytics Q2 2025
Compliance Monitoring Manual/Reactive Automated/Proactive Real-time monitoring Q1 2025
Audit Reporting Manual/Static Automated/Dynamic Dashboard automation Q2 2025

5. Audit Planning and Execution

5.1 Annual Audit Plan

5.1.1 Audit Schedule

Audit Type Q1 2025 Q2 2025 Q3 2025 Q4 2025 Auditor
SOX ITGC ✅ ✅ ✅ ✅ External
ISO 27001 ✅ - ✅ - Certification Body
COBIT Governance ✅ - - - Internal
ITIL Service Management ✅ - ✅ - Internal
Business Continuity - ✅ - - Certification Body
Quality Management - - ✅ - Certification Body
GDPR Compliance As Required As Required As Required As Required Regulatory

5.1.2 Audit Resource Requirements

Audit Type Internal Resources External Resources Estimated Cost Duration
SOX ITGC 120 hours 200 hours $85K 4 weeks
ISO 27001 80 hours 120 hours $45K 3 weeks
COBIT Governance 160 hours 40 hours $25K 4 weeks
ITIL Service Management 120 hours 60 hours $20K 3 weeks
Business Continuity 60 hours 80 hours $30K 2 weeks
Quality Management 40 hours 60 hours $20K 2 weeks

Total Annual Audit Investment: $225K

5.2 Audit Execution Framework

5.2.1 Audit Methodology

Phase Activities Duration Deliverables Success Criteria
Planning Scope definition, risk assessment 1 week Audit plan Approved scope and approach
Fieldwork Testing, interviews, documentation review 2-4 weeks Audit evidence Sufficient appropriate evidence
Reporting Analysis, findings, recommendations 1 week Audit report Clear findings and recommendations
Follow-up Management response, remediation tracking Ongoing Action plans Timely remediation

5.2.2 Audit Quality Assurance

Quality Control Approach Frequency Responsibility
Audit Planning Review Independent review of audit plans Per audit Audit Manager
Fieldwork Supervision Ongoing supervision and review Continuous Senior Auditor
Report Review Independent review of audit reports Per report Audit Director
External Quality Assessment Independent assessment of audit function Tri-annual External Assessor

6. Audit Performance Metrics

6.1 Audit Effectiveness Metrics

Metric Current Baseline Target Measurement Frequency Owner
Audit Coverage 78% 95% Quarterly Chief Audit Executive
Control Deficiency Rate 12% <5% Per audit Audit Manager
Audit Cycle Time 6 weeks 4 weeks Per audit Audit Team
Management Response Rate 85% 100% Monthly Management
Remediation Timeliness 75% 95% Monthly Process Owners

6.2 Audit Efficiency Metrics

Metric Current Baseline Target Annual Value Measurement
Audit Cost per Hour $150 $120 $30K savings Annual
Automation Rate 35% 70% $50K savings Quarterly
Audit Productivity 60% 80% $40K value Annual
Stakeholder Satisfaction 7.5/10 9.0/10 Quality improvement Bi-annual

7. Audit Risk Management

7.1 Audit Risk Assessment

7.1.1 Audit Risk Categories

Risk Category Description Impact Likelihood Mitigation Strategy
Audit Coverage Risk Inadequate audit coverage HIGH MEDIUM Risk-based audit planning
Audit Quality Risk Poor audit quality HIGH LOW Quality assurance program
Resource Risk Insufficient audit resources MEDIUM MEDIUM Resource planning and allocation
Technology Risk Audit technology failures MEDIUM LOW Technology redundancy
Regulatory Risk Regulatory audit failures HIGH LOW Regulatory compliance monitoring

7.1.2 Audit Risk Mitigation

Risk Mitigation Control Implementation Status Monitoring
Coverage Risk Risk-based audit universe ✅ IMPLEMENTED Annual review
Quality Risk Quality assurance program ✅ IMPLEMENTED Continuous
Resource Risk Resource capacity planning ⚠️ PARTIAL Quarterly
Technology Risk Audit technology redundancy ⚠️ PARTIAL Monthly
Regulatory Risk Regulatory monitoring ✅ IMPLEMENTED Continuous

7.2 Audit Issue Management

7.2.1 Audit Finding Classification

Finding Level Criteria Response Time Escalation
CRITICAL Material weakness; significant risk 30 days Executive leadership
HIGH Significant deficiency; moderate risk 60 days Senior management
MEDIUM Control deficiency; low risk 90 days Process owner
LOW Process improvement opportunity 120 days Operational management

7.2.2 Remediation Tracking

Tracking Component Approach Frequency Responsibility
Action Plan Development Management response required Per finding Process owners
Progress Monitoring Regular status updates Monthly Audit team
Validation Testing Independent validation Per remediation Audit team
Closure Approval Formal closure process Per finding Audit manager

8. Conclusion and Implementation

8.1 Summary of Audit Requirements

This Comprehensive Audit Requirements Specification identifies 28 audit frameworks with varying levels of impact and frequency requirements for the ICT Governance Framework project. The analysis reveals:

8.2 Immediate Actions Required

  1. Implement Continuous Auditing: Deploy automated audit testing and monitoring
  2. Enhance Audit Technology: Implement GRC platform and audit analytics
  3. Strengthen Audit Controls: Address identified gaps in audit coverage
  4. Resource Allocation: Secure resources for audit program enhancement

8.3 Success Criteria Validation

Success Criterion Status Evidence Next Steps
Comprehensive audit requirements identified ✅ ACHIEVED 28 audit frameworks documented Implementation planning
Audit gaps identified ✅ ACHIEVED 15 gaps documented with remediation plans Begin remediation
Audit program designed ✅ ACHIEVED Annual audit plan and methodology Resource allocation
Audit technology requirements defined ✅ ACHIEVED Technology stack and automation roadmap Technology procurement

Document Status: Complete - Ready for Implementation
Next Review Date: January 30, 2025
Implementation Start: February 1, 2025
Approval Authority: Chief Audit Executive, Audit Committee

This Comprehensive Audit Requirements Specification provides the foundation for comprehensive audit coverage within the ICT Governance Framework, ensuring all applicable audit requirements are systematically addressed throughout the project lifecycle.

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