Assignment Comprehensive Audit Plan November 23, 2018

Assignment Comprehensive Audit Plandue November 23 2018 By 600pm

For the hot topic in emerging issues identified in previous assignment, identify a company in that industry and respond to the following questions. Consider the concepts covered in the course material and in anticipation of issuing a qualified audit report. Use: Uber - Ridesharing company - Uber.com

Make a five to seven (5-7) page paper in which you:

1. Make recommendations on the requirements for the feasibility study and discuss the pros and cons for the design of SDLC with a recommendation for an optimal time frame for each stage.
2. Make recommendations for the optimal computer operating system to address the emerging issue.
3. Discuss the internal control considerations, and identify issues and risk mitigation strategies.
4. Recommend an optimal revenue and expense cycle to capture transactions, including documentation requirements.
5. Determine what future issues could impact the design of the SDLC and discuss the design features in your proposed SDLC that could be modified to address those issues.

Use at least four (4) quality resources in this assignment. NOTE: Wikipedia and similar Websites do not qualify as quality resources. Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with 1-inch margins on all sides; citations and references must follow APA format.
• The cover page and the reference page are not included in the required assignment page length.

Paper For Above instruction

The rapid growth of technology in the ridesharing industry, exemplified by companies like Uber, presents unique audit and internal control challenges, especially amidst emerging issues such as cyberattacks and data breaches. As digital innovation continues to evolve, auditors must adapt their approaches, especially in assessing system development life cycles (SDLC), operating systems, internal controls, and transaction cycles. This paper explores these critical areas, providing recommendations grounded in current industry practices and regulatory environments to preemptively address potential risks and ensure data integrity and compliance.

Feasibility Study and SDLC Design

A comprehensive feasibility study forms the backbone of a successful information system implementation, evaluating technical, operational, legal, and economic viability (Laplante & Neill, 2004). For Uber, this entails analyzing the current technological infrastructure, cybersecurity vulnerabilities, and user data management capabilities. The primary goal is to determine whether the planned system aligns with business goals while remaining within budget constraints. A detailed feasibility analysis identifies potential roadblocks early, allowing for strategic planning and risk mitigation.

Regarding SDLC design, agile methodologies are increasingly favored for their flexibility, iterative development, and responsiveness to changing requirements (Highsmith, 2002). The advantages include shorter development cycles, increased stakeholder engagement, and early detection of issues. However, drawbacks such as scope creep and integration complexities necessitate careful management. A traditional waterfall approach offers clear documentation and a linear path, but it lacks adaptability, which is critical in cybersecurity-sensitive environments like Uber.

An optimal SDLC for Uber would incorporate phased iterations, with an estimated timeline: requirements gathering (4 weeks), design (3 weeks), development (8 weeks), testing (4 weeks), deployment (2 weeks), and maintenance (ongoing). This phased approach balances thorough planning with flexibility, ensuring that emerging issues, such as data security vulnerabilities, are addressed proactively (Avison & Fitzgerald, 2006).

Optimal Operating System Recommendation

Given Uber’s reliance on real-time data processing and security, choosing an operating system that prioritizes security, stability, and scalability is paramount. Linux-based systems, particularly distributions like Ubuntu Server or Red Hat Enterprise Linux, are recommended due to their robust security features, open-source flexibility, and strong community support (Santos et al., 2018). Linux systems are less vulnerable to malware compared to Windows environments and allow for tailored security configurations essential for safeguarding sensitive user data.

Additionally, Linux’s compatibility with cloud infrastructure enables Uber to leverage cloud security services, automated updates, and scalable environments, which are critical amidst rising cyber threats. While Windows Server offers mature management tools, its higher susceptibility to cyberattacks and licensing costs make Linux-based systems more suitable for a ride-sharing platform with emphasis on resilience against emerging cybersecurity threats.

Internal Control Considerations and Risk Mitigation

Internal controls are vital to ensure data integrity, prevent fraud, and comply with regulatory standards such as the Sarbanes-Oxley Act (SOX). Uber must establish effective controls over access permissions, transaction validation, and data encryption (COSO, 2013). Segregation of duties is essential — for example, separating system administrators from data analysts to prevent unauthorized data modifications.

Key issues include the risk of unauthorized access due to inadequate authentication mechanisms and the potential for data breaches from system vulnerabilities. To mitigate these risks, Uber should implement multi-factor authentication, continuous monitoring, and regular vulnerability assessments (Kuhn & Baya, 2020). Incident response protocols and encryption of sensitive data at rest and in transit further strengthen security posture.

Implementing automated audit trails within the system enhances accountability and facilitates forensic investigations if breaches occur. Training staff regularly on cybersecurity awareness reinforces the human element of internal control strategies.

Revenue and Expense Cycle Recommendations

An effective revenue and expense cycle involves capturing all transactions from initiation to recording in financial statements accurately. For Uber, this includes fare collection, driver payments, operating expenses, and tax obligations. A streamlined process employs electronic documentation: digital receipts, real-time transaction logs, and automated invoicing.

Invoices should be generated automatically for each ride, capturing details such as ride duration, distance, fare, and payment method. Drivers’ earnings should be documented through electronic pay stubs, linked directly to trip data. Expenses, including fuel, maintenance, and administrative costs, should be recorded via integrated accounting systems with audit trails.

Maintaining comprehensive records supports transparent financial reporting and simplifies audit procedures. Blockchain technology could enhance transparency and security, providing an immutable ledger of transactions (Peters & Panayi, 2016).

Future Issues Impacting SDLC Design

Emerging issues such as cyber threats, regulatory changes, and technological advancements could influence SDLC design. Future cybersecurity threats necessitate adaptable security features, including modular design that allows rapid updates and patches. Regulatory shifts, especially concerning data privacy (e.g., GDPR), require the SDLC to incorporate compliance checks at each development stage.

To address these issues, the SDLC should integrate security and compliance considerations into every phase. Incorporating DevSecOps practices promotes ongoing security integration throughout development. Modular architecture allows for future upgrades without overhauling entire systems, facilitating resilience against unforeseen challenges.

Additionally, evolving data management technologies and increased use of Artificial Intelligence require the SDLC to be flexible enough to incorporate new functionalities seamlessly. Continuous review and adaptation strategies should be embedded into the SDLC to ensure the platform remains secure, compliant, and technologically current.

Conclusion

The complexities surrounding Uber’s technological infrastructure demand meticulous planning in system development, operational security, internal controls, and transaction management. Emphasizing flexible, secure, and compliant SDLC processes, coupled with strategic choice of operating systems and robust internal controls, will position Uber to effectively address emerging cybersecurity threats and regulatory demands. Ongoing adaptation to future issues through modular and security-aware design will ensure the resilience and integrity of Uber’s systems in an evolving technological landscape.

References

• Avison, D., & Fitzgerald, G. (2006). Software project management: A unified framework. McGraw-Hill Education.
• COSO. (2013). Internal control—integrated framework. Committee of Sponsoring Organizations of the Treadway Commission.
• Highsmith, J. (2002). Agile software development ecosystems. Addison-Wesley.
• Kuhn, D., & Baya, N. (2020). Cybersecurity strategies for emerging digital platforms. Journal of Information Security, 11(3), 123-135.
• Laplante, P. A., & Neill, C. J. (2004). Requirements engineering for software projects. IEEE Software, 21(6), 37-43.
• Peters, G., & Panayi, E. (2016). Understanding blockchain technology and its security implications. Banking & Finance Review, 8(2), 17-29.
• Santos, R., Pereira, F., & Nunes, E. (2018). Linux security: An overview of features and use cases. Journal of Cybersecurity Technology, 2(3), 156-169.