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ISCA: Q2 - Coggle Diagram
ISCA: Q2
IS ASSETS CONCERNS
Outdated Operating Systems
Outdated & unsupported software:
Windows 7, Windows 8, Windows 2000, Windows XP
Microsoft has ended support for the OS
- no longer receive security updates & patches
Susceptible to
exploitation by malicious actors
Expired / Lack of Antivirus Software
Exposed to
malware & viruses
- lead to potential data loss
Disrupt operations
-
corrupting files, causing system crashes
- lead to potential data loss & hindering productivity.
Wireless Security Concerns
Weak encryption
- easily cracked
Vulnerable to
unauthorized access & data breach
- can lead to data interception & manipulation
RECOMMENDATIONS TO MINIMIZE RISKS ON IS FACILITIES
Upgrade & Standardize Antivirus Protection
Regularly
update antivirus signatures and renew licenses
to keep the systems secure.
Ensure
real-time protection against malware, viruses
, and other security threats.
Enhance Wireless Network Security
Upgrade to latest encryption standard
Reduce the risk of unauthorized intrusions
Implement a Robust Patch Management System
Keeping Windows operating systems and other software up-to-date
with the latest security updates
Ensure IS facilities remain resilient against evolving cyber threats
HOW TO AUDIT WHEN THE LOCATION IS FAR AWAY
Leverage Remote Auditing Tools & Software
Conduct virtual inspections
of the existing data center, database, servers, and internet protocol technology
Utilize Remote Collaboration Tools
Communicate with on-site personnel
- gather relevant documentation & conduct interviews to
assess the overall effectiveness of the IS in place
USE CRYPTOCURRENCY FOR PAYMENTS
Not recommended
due to several significant risks and regulatory concerns
Key Risk Areas
Regulatory Compliance Risk:
Chosen cryptocurrency exchange
must have a license to trade digital assets in Malaysia
-
can prevent legal consequences
Currency and Price Volatility Risk:
Subject to
violent and random price movements
-
unreliable for stable transactions
especially in the context of international trade - potential for
significant financial losses
due to currency fluctuations - affect revenue & profit
WHY BNM REQUIRES ONLY LICENSED DAX TO HANDLE CRYPTOCURRENCY IN M'SIA
Protect consumers from the inherent risks associated with digital assets
(market manipulation, fraud, and money laundering):
Ensure they
comply with financial regulations and consumer protection measures
DIFFICULTIES IN PERFORMING AUDIT PROCEDURES FOR NON-M'SIAN LICENSED DAX
Geographical & Jurisdictional Limitations
Restrictions in physically accessing
the DAX's
servers, records, and personnel
located outside of Malaysia
Limit
the ability to conduct
on-site testing of controls
and verify the accuracy and completeness of financial information.
Regulatory & Legal Barriers
Challenges in understanding, interpreting, and applying non-Malaysian regulations
Conflicts between Malaysian auditing standards and the regulations of the DAX's home country
- requires careful consideration to ensure compliance with both sets of regulations.