Cloud computing is beginning to climb its way up the ladder, becoming vastly more popular now that Apple products have become linked to it. However, many people still don't full understand what cloud computing is, and to audit a cloud becomes more of an alien idea if basic information is not known.
So what exactly is a cloud and how can it make people's lives easier? If you can imagine a big empty area in cyber space where people can safely store information to be accessed anywhere, the basics of the cloud are just as simple. Connecting a cloud to an Apple product was a genius idea. Allowing people to automatically save pictures and video to the cloud, and then transferring this data to their home computer put the powerful cloud computing in every one's palms.
The question then becomes, how do you audit something that has no physical presence but protects private and important information? The answer is simple: try to break the controls and force yourself into the cloud. An auditor must make sure that the controls that protect this information are reliable enough to keep away potential hackers.
Auditors must make sure that the cloud cannot be hacked into by an unauthorized person. Password protection and verification of a user is essential in keeping important data from getting into the wrong hands.
The cloud must also be reliable. The information within the cloud is important and needs to be protected, however it must also be available to users 24/7. If a company uses the cloud for data storage, employees will need to access this data at any time during the day. The cloud must be available and running for access to this information.
Another big issue that an auditor faces while analyzing a cloud is to make sure it is cost efficient. Is the cost of the upkeep and maintenance of the cloud worth the hassle of transferring the data for customers and employees to use? If the cost does not meet expectations, then cloud computing may not be right for the business at hand.
Cloud computing has taken off, and doesn't seem to be staggering any time soon. Experts say that cloud computing may be the new storage data of the future. Holding such important information will force users of the cloud to make sure controls are in place to protect the information within. Auditors must adapt to the ever changing technology, and learn new ways to test and audit companies.
Source:http://www.cloudtweaks.com/2012/04/cloud-auditing-making-sure-that-your-cloud-works-per-your-expectations/
Tuesday, April 24, 2012
Sunday, April 15, 2012
ARD Auditing Diamond Lab after Firing Graders
When buying a diamond ring, how do you know that the diamond is as perfect and clear as the price suggests? How do you know that the $14,000 diamond isn't as good as the $3,000 ring in the next case? All diamonds of high quality are graded by certified gemologists who grade diamonds based on the 4 C's: carat, clarity, color, and cut. These gemologists give a certificate for each diamond, knowing what to look for to spot a "bad" diamond or a lower quality diamond. The trust to be accurate lies with these gemologists whom retailers and customers alike rely on the information they produce. Unfortunately, this is not the case at a recent diamond grading lab in Antwerp, the worlds largest diamond trading center.
The Certificates Department of the Antwerp Diamond High Council (HRD), in Belgium has recently announced that there may have been "potential inconsistencies" when grading diamonds through their lab. Due to the strict International Standards Organization (ISO) that overseas the selling and procuring of diamonds, HRD has been having a hard time following the rules. The employees that are suspect of grading diamonds incorrectly have been working for HRD for around eight to eleven years. It is unclear at this time how long these mistakes have been made, all that is known is that there are diamonds that are not being sold at the value they are worth. So far, four graders have been fired, with many suspected to follow.
A forensic audit team will lead the group in finding these mistakes and recommend solutions to fix them. It may be a precaution, but having your diamonds re evaluated may prove if a diamond you bought was mislabeled.
These types of mistakes are often caught at the retail level. Recently, many local jewelers, such as Hanoush Jewelers, have begun the practice of grading all their diamonds a second time. This gives the customer a stronger sense of security, knowing that the diamond they are buying is truly as perfect as they want.
Next time there is a diamond purchase in your future, a suggestion would be to get another grading test done to be sure that it is the right diamond for you. There is no official number of how many diamonds could be suspected of being mislabeled, but taking that extra step to insure that the diamond is the correct grade will put you in a better sense of mind.
The Certificates Department of the Antwerp Diamond High Council (HRD), in Belgium has recently announced that there may have been "potential inconsistencies" when grading diamonds through their lab. Due to the strict International Standards Organization (ISO) that overseas the selling and procuring of diamonds, HRD has been having a hard time following the rules. The employees that are suspect of grading diamonds incorrectly have been working for HRD for around eight to eleven years. It is unclear at this time how long these mistakes have been made, all that is known is that there are diamonds that are not being sold at the value they are worth. So far, four graders have been fired, with many suspected to follow.
A forensic audit team will lead the group in finding these mistakes and recommend solutions to fix them. It may be a precaution, but having your diamonds re evaluated may prove if a diamond you bought was mislabeled.
These types of mistakes are often caught at the retail level. Recently, many local jewelers, such as Hanoush Jewelers, have begun the practice of grading all their diamonds a second time. This gives the customer a stronger sense of security, knowing that the diamond they are buying is truly as perfect as they want.
Next time there is a diamond purchase in your future, a suggestion would be to get another grading test done to be sure that it is the right diamond for you. There is no official number of how many diamonds could be suspected of being mislabeled, but taking that extra step to insure that the diamond is the correct grade will put you in a better sense of mind.
Sunday, April 8, 2012
Charter School Chief Resigns Amid Financial Mismanagement
Money management is the hardest part when obtaining funds. For example, statistics show that most lottery winners end up worse off, financially, then they were before they won the money. This is often due to the fact that these winners do not understand that this money is limited. This scenario often happens to not-for-profit businesses who are faced with massive grants, often around the same time, and must manage the funds throughout the year.
This situation was forced upon chief executive officer of Vialistic Therapeutic Charter School, Nancy Egan. Since 2010, she accuses the board of trustees and other administrations of having undermined her many attempts to fix the money management problems the school was facing. Funds that were specifically granted for additional programs for the students of the school were instead used to pay electricity bills. The lack of funds to pay for basic utilities may have arose from a recent internal audit that brought to light questionable payroll issues. Egan stated, "questionable issues regarding payroll, previously voted-on pay cuts, approved staff hours and pay rate, Capital Blue Cross coverage and issues regarding past-due payables" were found during this audit and were not addressed.
These comments did not come as a surprise. Last year, Vitalistic lost their mental health license after auditors found no evidence that more than $200,000 services billed to the state were actual cases. It seems that this was the tip of the iceberg. Unpaid loans given to the sister preschool were forgiven by Vitalistic. According to the law, charter schools are forbidden to lend money. These problems at Vitalistic are compounding and the only people truly getting hurt are the students.
Currently, the above stated sister preschool has been closed down, and almost half of the staff at Vitalistic have been laid off. The state auditor general is now investigating this school. It seems as if it will only be a matter of time until the school will be closed, leaving hundreds of children with special needs without the resource to help them. This situation needs to be cleared up, and a new management system forced into place.
Source: http://www.mcall.com/news/local/allentown/mc-bethlehem-vitalistic-charter-school-ceo-resign-20120328,0,2966852.story
This situation was forced upon chief executive officer of Vialistic Therapeutic Charter School, Nancy Egan. Since 2010, she accuses the board of trustees and other administrations of having undermined her many attempts to fix the money management problems the school was facing. Funds that were specifically granted for additional programs for the students of the school were instead used to pay electricity bills. The lack of funds to pay for basic utilities may have arose from a recent internal audit that brought to light questionable payroll issues. Egan stated, "questionable issues regarding payroll, previously voted-on pay cuts, approved staff hours and pay rate, Capital Blue Cross coverage and issues regarding past-due payables" were found during this audit and were not addressed.
These comments did not come as a surprise. Last year, Vitalistic lost their mental health license after auditors found no evidence that more than $200,000 services billed to the state were actual cases. It seems that this was the tip of the iceberg. Unpaid loans given to the sister preschool were forgiven by Vitalistic. According to the law, charter schools are forbidden to lend money. These problems at Vitalistic are compounding and the only people truly getting hurt are the students.
Currently, the above stated sister preschool has been closed down, and almost half of the staff at Vitalistic have been laid off. The state auditor general is now investigating this school. It seems as if it will only be a matter of time until the school will be closed, leaving hundreds of children with special needs without the resource to help them. This situation needs to be cleared up, and a new management system forced into place.
Source: http://www.mcall.com/news/local/allentown/mc-bethlehem-vitalistic-charter-school-ceo-resign-20120328,0,2966852.story
Subscribe to:
Posts (Atom)