www.edulounge.

in

CA Inter

EIS
NUGGETS
CHAPTER 3 CA Chandan Patni
Information System Components
 To buy our awesome e-lectures
www.edulounge.in

Subscribe to our YouTube Get access to notes, charts Follow CA Chandan Patni on
channel for revision lectures and other amazing content Instagram.
& regular updates. on our Telegram channel.
 1) People IT professionals + End Users

a) Text based

b) Position based
i) Input Devices
c) Image based

d) Voice based

Control Unit controls the flow of data

ii) Processing Devices CPU ALU arithmetic operations + logical comparisons

Registers high speed memory for storing small amount of data

Registers
a) Internal Memory
bridge the speed difference between
2) Hardware Cache Memory Registers & Primary Memory

RAM volatile, read-write

iii) Storage Devices b) Primary Memory
ROM non-volatile, real only

c) Virtual Memory allocation of hard disk space to help RAM

d) Secondary Memory long term storage, non volatile, large capacity

a) Textual

b) Graphical

iv) Output Devices c) Tactile raised line drawing

d) Audio

e) Video

1) Application receives inputs

1) Application Software Layers 2) O/s processes the inputs using the data stored in database

3) Database stores data

Command based
User Interface
3) Software GUI

Performing Hardware functions

Hardware Independence API

Memory Management manage memory + Virtual memory

2) Operating System Software Functions/ Activities
Task Management multi tasking

File Management

Logical Access Security

8) Networking Capability

Adding new files

Deleteing existing files

IS Components
Inserting data/ record in existing files
1) Activities
Modifying data/records in existing files

Deleting data/records in existing files

Retrieve/ Query

Database

Files

2) Hierarchy Record

Field

Characters

Basics i) Data Sharing

ii) Data Integrity

iii) Data Security

iv) Data Redundancy

3) Advantages
v) Program/ File Consistency

vi) Data Independence

vii) User Friendly

viii) Faster Application Development

4) Data DBMS
i) Costly
4) Disadvantages
ii) Security

Inverted Tree Pattern

1) Hierarchical One-to-one, one-to-many

No child record can have more than one parent record

Multiple branches

2) Network One-to-one, one-to-many, many-to-one, many-to-many

Models
each node may have several parents (owners)

data organised in the form of tables (tables are known as relations)

3) Relational
Row in a table represents a record, column represents a field,

4) Object Oriented store complex data such as graphics, images, audit etc.

connection is first established, then data is

1) Connection Oriented Networks exchanged.
Types
no prior connection is made before data
2) Connectionless Networks exchange.

Network is required to consolidate

5) Network 1) Data Integration geographically distributed data.

2) Resource Sharing Data + perhiperhals

Benefits 3) Computational Power Increases because processing is distributed.

4) Reliability System works even if one node fails

5) User Communication email, video conferencing etc.

1) safeguard assets

Policies, practices & procedures employed by 2) Accuracy & reliability

1) Meaning org to achieve 4 objectives
3) Effectiveness & efficiency

4) Compliance

1) Cost Effectivness

2) Human Error carelessness, misjudgment, misunderstanding

3) Collusion
2) Limitations
Internal Controls 4) Change in conditions

5) Judgements by management

6) Limitation in case of Small Companies

CA Chandan Patni
1) Control Environment

2) Risk Assessment

3) Components 3) Control Activites

Information System 4) Information & Communication

Components
5) Monitoring

Chapter 3 1) Objectives of Controls 

i) Environmental Controls 

2) Nature of IS Resources ii) Physical Access Controls 

Classification 1
iii) Logical Access Controls 

i) Managerial Controls 
3) Audit Functions
ii) Application Controls 

i) Information Security Policy

ii) Administration, Access & Authentication

iii) Separation of key IT function

IS Control

iv) Management of System Acquisition & Implementation

pervasive controls, applies to all systems,
1) General Controls processes, data v) Development & Implementation of Application Software

vi) CIA of software & data

vii) Change Management

Classification 2
viii) Backup, Recovery & Business Continuity

ix) Incident Response & Management

2) Application Controls

Meaning logs to record activity at system, application & user level.

i) detecting unauthorised access

Audit Trail
Objectives ii) Reconstructing events

iii) Personal Accountability

examination of controls within the entity's IT

Meaning Infrastructure.

1) Asset Safeguarding
Attesting Objectives
2) Data Integrity Objectives
Objectives Management Objectives
3) System Effectiveness Objectives

4) System Efficiency Objectives

1) Organisational Cost of Data Loss

2) Incorrect Decision Making

3) Cost of Computer Abuse

IS Audit Need 4) Value of Computer Hardware, Software & Personnel

5) High cost of Computer Error

6) Maintenance of Privacy

7) Controlled evolution of computer use.

1) Integrated Test Facility (ITF) involves auditor establishing dummy entity

invloves taking pcitures/ snapshots of a transaction as it winds through an

2) Snapshots application

3) System Control Audit Review File ( provides continuous monitoring + collect data on events that
Concurrent Audit Techniques
SCARF) are of interest to them.

collecting audit evidence concurrently when

4) Continuous & Intermittent Simulation (CIS) application system uses DBMS

5) Audit Hooks flags or marks suspicious transactions

Meaning at least two individuals are responsible for the separate parts of any task.

i) Authorization (Maker-checker)
i) SoD
ii) Split custody of high value assets
Examples
iii) Workflow (eg. loan processing)

iv) Review/ Audit

system used to define hierarchy in an

Meaning organisation.

i) Objectives
ii) Organisation Structure
ii) Regulation
Factors driving changes
Miscellaneous
iii) Available Talent

iv) Market Conditions

1) Executive Management Top Leaders/ Senior Management

2) Owner Steward of an asset

iii) Individual Roles & responsibilities
3) Manager Obtaining Policies & Procedures + making it available

4) User uses assets in the performance of their job duties

iv) Job Titles

What our students say !
www.edulounge.in

Deep Agarwal Neina Devi Sowmyaa

Guwahati Guwahati Chennai

Thank you so much sir for our Dear Sir, Hello sir!
constant support and guidance. I want to say thank you to you Auditing classes were too good
Loved the way you taught and for helping me clear my CA Inter with a lot of practical
encouraged in the class. I was Group 2. I got 62 marks in ITSM. examples...the notes that you
always weak in theory but the I was not able to clear the group made us to write would help a
way you made us understand only because of this paper and lot during exam times...we
the concepts and also how to in my Nov 17 attempt I got 32 in gained a good understanding of
read theory subjects was just ITSM. You helped me a lot in the subject..Thanks a lot Sir 😊
super amazing. Now my fear of clearing the group. Thank you
theory subjects has gone down once again sir.
considerably. Thank you so
much sir.

To buy our awesome lectures, visit

www.edulounge.in
or call +91 94351 41741