1. Introduction

A. Understanding of the Auditee: The auditee is a fictitious bank that underwent a merger with another bank. The bank is a full-service financial institution, providing services such as retail banking, investment banking, asset management, and insurance. The bank has a large customer base and operations across multiple geographies. The bank uses a complex IT infrastructure consisting of multiple systems, applications, and databases.

B. Information about Audit Firm: The audit firm is a fictitious company with expertise in conducting audits of mergers and acquisitions. The audit team consists of experienced auditors with backgrounds in risk management, project management, and IT audit. The team leader has extensive experience in leading audits of large-scale migration projects.

2. Auditee Environment

The auditee is a bank that recently underwent a merger with another bank. The bank has a complex IT infrastructure consisting of multiple systems, applications, and databases. The bank’s operations span across multiple geographies, and it serves a large customer base. The bank has multiple regulatory requirements that it needs to comply with. The bank has a well-defined information security policy and internal policies and procedures for managing risks associated with its IT systems.

3. Background

The merger of the banks required the migration of data from the legacy systems of the two banks to a new system. The bank decided to outsource the migration process to a third-party service provider. The outsourcing of the migration process raised concerns about the potential risks associated with the migration process.

4. Situation

The situation that gave rise to the need for this audit is the merger of two banks that decided to outsource the migration of their data to a third-party service provider. The two banks have agreed to merge, and the data of the banks have to be migrated to a new platform. The banks have decided to outsource the migration to a third-party service provider to ensure that the migration is done professionally and without any issues.
The banks have a large customer base, and the data that needs to be migrated is enormous. The banks need to ensure that the migration is done without any issues, and the data is secure throughout the migration process. The banks have identified the third-party service provider to handle the migration, but they need to ensure that the service provider has adequate controls and safeguards to protect the data.
The banks have engaged our audit firm to audit the migration process to ensure that the service provider has adequate controls and safeguards to protect the data during the migration process. The audit firm is expected to provide an objective assessment of the service provider’s controls and identify any control weaknesses that could affect the migration process.

5. Terms and Scope of Assignment

The terms and scope of the audit are as follows:

a. The audit will cover the third-party service provider’s controls and safeguards for protecting the data during the migration process.

b. The audit will assess the adequacy and effectiveness of the third-party service provider’s controls for managing the risks associated with the migration process.

c. The audit will review the policies, procedures, and processes that the third-party service provider has in place for managing the migration process.

d. The audit will identify any control weaknesses that could affect the migration process and provide recommendations to address the weaknesses.

6. Logistic Arrangements Required

The following logistic arrangements are required for the audit:

a. Access to the third-party service provider’s facilities, including the data center where the migration will take place.

b. Access to the third-party service provider’s systems and network infrastructure to assess the controls and safeguards in place.

c. Access to the policies, procedures, and processes that the third-party service provider has in place for managing the migration process.

d. Access to any documentation related to the migration process, including the migration plan, data mapping, and data validation procedures.

7. Methodology and Strategy Adapted for Execution of Assignment

The audit will be conducted using a structured methodology that is consistent with the International Standards for the Professional Practice of Internal Auditing (IIA Standards) and the Information Systems Audit and Control Association (ISACA) guidelines.

The audit methodology will involve the following steps:

a. Planning: This will involve reviewing the audit objectives, scoping the audit, and identifying the audit team and logistics requirements.

b. Risk Assessment: This will involve assessing the risks associated with the migration process and identifying the controls and safeguards that the third-party service provider has in place to manage the risks.

c. Fieldwork: This will involve performing walkthroughs of the migration process to understand how the process works and assessing the controls and safeguards in place.

d. Testing: This will involve testing the effectiveness of the controls and safeguards in place and identifying any control weaknesses that need to be addressed.

e. Reporting: This will involve preparing a report that summarizes the audit findings and recommendations for addressing any control weaknesses identified.

8. Documents Reviewed

The following documents will be reviewed during the audit:

a. The contract between the banks and the third-party service provider for the migration of the data.

b. The policies, procedures, and processes that the third-party service provider has in place for managing the migration process.

c. The migration plan, data mapping, and data validation procedures.

d. The third-party service provider’s security policies and procedures.

9. References

In performing this assignment, we referred to the following standards, guidelines and best practices:

• COBIT 5: A Business Framework for the Governance and Management of Enterprise IT
• ISO/IEC 27001:2013 Information technology – Security techniques – Information security management systems – Requirements
• ISO/IEC 27002:2013 Code of practice for information security controls
• NIST SP 800-53: Security and Privacy Controls for Federal Information Systems and Organizations
• OWASP Top 10: The Ten Most Critical Web Application Security Risks

10. Deliverables

The following deliverables will be provided at the end of this assignment:•

A comprehensive report on the findings and recommendations of the vulnerability assessment and penetration testing, including an executive summary, detailed findings and recommendations, and technical details of the tests conducted.
• A remediation plan outlining steps to address the vulnerabilities identified.
• A debriefing session with key stakeholders to discuss the findings and recommendations.

11. Format of Report/Findings and Recommendations

The report will be in the following format:

• Executive Summary: Provides an overview of the findings and recommendations in a concise and easy-to-understand manner.
• Introduction: Provides an overview of the objectives and scope of the assessment.
• Methodology: Describes the approach, tools and techniques used in conducting the vulnerability assessment and penetration testing.
• Findings: Presents the vulnerabilities identified in the systems and applications tested, along with their severity levels and risk ratings.
• Recommendations: Provides detailed recommendations on how to address the identified vulnerabilities and improve the overall security posture of the systems and applications.
• Technical Details: Provides detailed technical information on the tests conducted, including the tools and techniques used and the results obtained.
• Remediation Plan: Outlines the steps that need to be taken to address the identified vulnerabilities.
• Conclusion: Summarizes the key findings and recommendations of the assessment.

12. Summary/Conclusion

In conclusion, conducting regular vulnerability assessments and penetration testing is crucial for maintaining the security of any organization’s IT systems and applications. By identifying and addressing vulnerabilities, organizations can reduce the risk of security breaches and protect their sensitive data from being compromised. This assignment has highlighted the importance of following a structured methodology, using appropriate tools and techniques, and adhering to relevant standards and best practices when conducting vulnerability assessments and penetration testing. It is recommended that organizations conduct such assessments and testing on a regular basis to ensure that their IT systems and applications remain secure and resilient against potential cyber attacks.