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In-house Controls in Organization
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By G.R. Brindha Shivakumar

Introduction

As technology advances in leaps and bounds today, much attention is paid by companies, especially IT organizations to safeguard security. In spite of the advancement, security continues to be a vulnerable area in most organizations. This paper throws light on the important aspects of in-house controls, testing security controls, identifying penetration points, assessing security and the attributes of an effective security control.

In-House control

Interest in in-house control has been highlighted by publicized penetrations of security and the increased importance of information systems and the data contained by those systems. The passage of the Sarbanes-Oxley Act in particular, highlighted interest in in-house control. The Sarbanes-Oxley Act, sometimes referred to as SOX, was passed in response to the numerous accounting scandals such as Enron and WorldCom. While much of the act relates to financial controls, there is a major section relating to in-house controls. Because misleading attestation statements is a criminal offense, top corporate executives take in-house control as a very important topic. Many of those controls are incorporated into information systems, and thus the need for testing those controls.

The following four key terms are used extensively in in-house control and security:


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