OTHER BUSINESS PROCESS PART 3 (Image Processing (Examples of potential…
OTHER BUSINESS PROCESS PART 3
Integrated Manufacturing Systems
Integrated manufacturing systems (IMS) have a long history and, accordingly, there are many models and approaches. Some of the integrated manufacturing systems include, and
The larger the scale of integration, the
more IS auditor attention is required.
Original IMSs were based on BOM and BOMP and usually supported by a hierarchical database management system (DBMS).
manufacturing accounting and production (MAP).
computer-integrated (or computer-intensive) manufacturing (CIM),
frequently used to run huge lights-out plants, with a significant portion of consumer goods being manufactured in these environments.
computer-assisted manufacturing (CAM) + computerized numeric control (CNC)—have led to CIM
computer-assisted design (CAD),
computer-assisted engineering (CAE) and computer-assisted
manufacturing resources planning (MRP),
. MRP is a typical module of most ERP packages such as SAP or Oracle Financials and is usually integrated in modern customer relationship management (CRM) and supply chain management (SCM) systems.
BOM processing (BOMP)
bill of materials (BOM),
Interactive Voice Response
An IS auditor should ensure that there are controls over such systems in place to prevent unauthorized individuals from entering system-level commands that may permit them to change or rerecord menu options
IVR systems can be used to control almost any function in which the interface can be broken down into a series of simple menu choices.
The caller uses the telephone keypad to select from preset menu choices provided by the IVR.
The IVR system then responds with prerecorded or dynamically generated audio to further direct callers or route the caller to a customer service representative.
In telephony, interactive voice response (IVR) is a phone technology that allows a computer to detect voice and touch tones using a normal phone call.
Purchase Accounting System
Most purchase accounting systems perform three basic accounting functions:
Order processing—Recording goods ordered but not yet received
Goods received processing—Recording details of goods received but not yet invoiced
Accounts payable processing—Recording transactions in the accounts payable records
Additional controls over payments are also required to ensure that
that the same purchase was not paid for twice, and that they were, indeed, paid.
each payment was made for goods and services received,
Purchase accounting systems process the data for purchases and payments.
Because purchases automatically lead to payments, if
purchases are properly contracted, partial control over payments exists.
in retail store - Sales processed by Sale accounting system, processed by account receivable system and through inventory system , then purchase accounting system might be triggered to replace the depleted inventory
IS auditor should be aware of when reviewing an institution’s
controls over imaging systems include:
Redesigning of workflow
Institutions generally redesign or reengineer
workflow processes to benefit from imaging technology.
Critical issues include
and electronic media storage to meet audit and document retention legal requirements.
and integration of the imaging system into the organization workflow
converting existing paper storage files
personnel should be trained adequately to
as well as the use of the system to maximize the benefits of converting to imaging systems
ensure quality control over the scanning and storage of imaging documents
Inadequate training of personnel scanning the documents can result in poor-quality document images and indexes, and the early destruction of original documents.
Audit procedures may have to be redesigned and new controls designed into the automated process
Imaging systems may change or eliminate the traditional controls
as well as the checks and balances inherent in paper-based systems.
Procedures should be in place to ensure that original documents are not destroyed before determining that a good image has been captured.
absence of controls over the scanning process can result in and
incomplete or forged documents being entered into the system
poor quality images,
an disrupt workflow if the scanning equipment is
not adequate to handle the volume of documents or the equipment breaks down
Scanning devices are the entry point for image
documents and a significant risk area in imaging systems.
integrity and reliability
of the imaging system database are related directly to the quality of controls over access to the system.
Security controls over image system documents are critical to
protect institutions and customer information from unauthorized access and modifications
Examples of potential benefits are:
• Enhanced disaster recovery procedures
• Reduced deterioration due to handling
• Improved control over paper files
• Increased productivity
• Immediate retrieval via a secure optical storage medium
• Item processing (e.g., signature storage and retrieval)
The storage capacities must be enormous, and most image systems include
and laser printing.
rapid and powerful compression,
optical disk storage
An imaging system stores, retrieves and processes graphic data, such as pictures, charts and graphs, instead of or in addition to text data.
Some of the many algorithms used in image processing include These are usually implemented in software but may also use special-purpose hardware for speed.
and contrast enhancement.
thinning (or skeletonization),
discrete cosine transform (DCT),
fast Fourier transform (FFT),
convolution (on which many others are based),