Managing an IT Infrastructure Audit

This assignment consists of four (4) sections: an internal IT audit policy, a management plan, a project plan, and a disaster recovery plan. You must submit all four (4) sections as separate files for the completion of this assignment. Label each file name according to the section of the assignment it is written for. Additionally, you may create and /or assume all necessary assumptions needed for the completion of this assignment.

Imagine you are an Information Security Manager for a large national retailer. You have been hired to be directly responsible for the planning and oversight of IT audits. At the request of the Board of Directors, the CEO has tasked you with developing a plan for conducting regular audits of the IT infrastructure. The planning and management aspects of IT audit are critical to the overall success of the audit, and as a result, the overall success of the systems implemented within the organization. You must develop a policy for conducting IT audits and develop a project plan for conducting two week IT audits. In addition to the typical networking and Internetworking infrastructure of a medium-sized organization, the organization has the following characteristics:

They have a main office and 268 stores in the U.S. They utilize a cloud computing environment for storage and applications. Their IT infrastructure includes Cisco workgroup and core switches, Cisco routers, Cisco firewalls and intrusion prevention systems, and servers running Microsoft Windows Server 2012. They have over 1000 desktops and approximately 500 organization-owned laptops in the main headquarters. They allow employees to bring their own devices into the organization; however, they are subject to being searched upon entry and exit from the building. They enable remote access to corporate information assets for employees and limited access to extranet resources for contractors and other business partners. They enable wireless access at the main office and the stores. They process an average of 67.2 credit card transactions per hour every day at each location and via their corporate Website. Section 1: Internal IT Audit Policy Write a three to four (3-4) page paper in which you:

1. Develop an Internal IT Audit Policy, which includes at a minimum:

a. Overview b. Scope c. Goals and objectives d. Compliance with applicable laws and regulations e. Management oversight and responsibility f. Areas covered in the IT audits g. Frequency of the audits h. Use at least two (2) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Section 2: Management Plan Write a four to six (4-6) page paper in which you:

2. Explain the management plan for conducting IT audits, including:

a. Risk management b. System Software and Applications c. Wireless Networking d. Cloud Computing e. Virtualization f. Cybersecurity and Privacy g. BCP and DRP h. Network Security i. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Section 3: Project Plan Use Microsoft Project or an Open Source alternative, such as Open Project to:

3. Develop a project plan which includes the applicable tasks for each of the major areas listed below for each element of the IT audit mentioned above; plan for the audit to be a two (2) week audit.

a. Risk management b. System software and applications c. Wireless networking d. Cloud computing e. Virtualization f. Cybersecurity and privacy g. Network security

Section 4: Disaster Recovery Plan Write a five to seven (5-7) page paper in which you:

4. Develop a disaster recovery plan (DRP) for recovering from a major incident or disaster affecting the organization.

a. The organization must have no data loss. b. The organization must have immediate access to organizational data in the event of a disaster. c. The organization must have critical systems operational within 48 hours. d. Include within the DRP the audit activities needed to ensure that the organization has an effective DRP and will be able to meet the requirements stated above. e. Use at least three (3) 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 one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Assignment 1: Client Letter

Imagine that you are a Certified Public Accountant (CPA) with a new client who needs an opinion on the most advantageous capital structure of a new corporation. Your client formed the corporation in question to provide technology to the medical profession to facilitate compliance with the Health Insurance Portability and Accountability Act (HIPAA). Your client is very excited because of the ability to secure several significant contracts with sufficient capital.

Use the Internet and college’s databases to research the advantages and disadvantages of debt for capital formation versus equity for capital formation of a corporation. Prepare a formal letter to the client using the six (6) step tax research process in Chapter 1 and demonstrated in Appendix A of your textbook as a guide.

Write a one to two (1-2) page letter in which you:

1.Compare the tax advantages of debt versus equity capital formation of the corporation for

the client.

2.Recommend to the client whether he / she should use debt or equity for capital formation of the new corporation, based on your research. Provide a rationale for the response.

Your assignment must follow these formatting requirements:

•Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

•Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

•Analyze tax issues regarding corporate formations, capital structures, income tax, non-liquidating distributions, or other corporate levies.

•Use technology and information resources to research issues in organizational tax research and planning.

•Write clearly and concisely about organizational tax research and planning using proper writing mechanics.

Corporate Fraud Schemes

Identify an organization that was involved in corporate fraud. Explain how fraud can be detected and evaluate the importance of teamwork and leadership in a fraud investigation.

For this assignment, research the Internet or Strayer databases and identify an organization that was involved in corporate fraud.

Write a three to four (3-4) page paper in which you:

1- Based on your research, identify and assess the fraud that occurred in the organization and the impact it has had on the corporation’s investors and creditors. Provide support for your rationale.

2- Suggest how a financial forensic investigation could have detected fraud in the organization that you researched. Consider the risk factors, the elements of fraud, and the analysis of competing hypotheses.

3- Evaluate how teamwork and leadership is an effective tool for financial forensic investigations. Provide support for your evaluation.

4- Assess the role of research in fraud examinations and financial forensics professions. Give your opinion on whether or not fraud examinations and financial forensics professions can have long-term success without continuous research in the field. Provide support for your rationale.

Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

ACC 420 Module 5 Assignment 1 LASA 2 Airvalue Airways Strategic Planning

Airvalue Airways is a regional carrier whose strategy is to expand gradually as they can identify routes that offer an attractive return on the investment necessary to support successful coverage of the route.  As part of this expansion, the company is planning to buy a new plane in the upcoming fiscal year. The purchasing department has narrowed the choice down to two models.  One is the A220 which is manufactured in Europe.  The other plane is the G435 which is built in the United States.  The two aircraft have similar profiles. However, the locally-built G435 is significantly more expensive to purchase.

The A220 has an expected life of 5 years, will cost $90 million and its use will produce net operating cash inflows of $30 million per year. The G435 has a life of 10 years, will cost $128 million, and its use will produce net operating cash inflows of $25 million per year.  Airvalue plans to serve the route for 10 years. When they need to purchase a new A220 at the end of five years, the cost will be $115 million net after allowing for salvage value of the used plane.  Net operating cash inflows will remain at $30 million throughout the second five years.  At the end of 10 years, salvage value of the G435 and of the second A220 are expected to be about the same at approximately $500,000 each.

As the company’s CFO you are to provide the financial analysis that will be considered by the strategic planning executive committee during evaluation of this expansion alternative.  Your plan is to use a capital budgeting approach to the analysis in order to best assure that the decision will result in maximization of wealth for the company’s stockholders.  You also want to convert the entire committee to the concept that capital budgeting should be used as the main tool for the financial analysis of capital expenditure alternatives.

The company uses the historical difference in returns between the S&P 500 and the Treasury bond rates of 7% as their estimated market risk premium.   The current yield to maturity on a 10-year Treasury bond is 6.2%.  Airvalue Airways’ common-stock equity beta is estimated as 1.40.

Airvalue’s capital structure is 58% common stock, 32% preferred stock and 10% long-term debt.  An 8.8% after tax cost of debt has been determined and the cost of preferred stock is 12%.

Your task is to:

1. Describe for other members of the strategic planning committee the role that capital budgeting should play in corporate strategic management.
2. Explain why the NPV and IRR capital budgeting tools are superior to the accounting rate of return and simple payback techniques for determining the attractiveness of capital investment opportunities.
3. Use the Capital Asset Pricing Model (CAPM) to identify the cost of common stock.
4. Calculate the weighted average cost of capital (WACC) for the firm’s existing capital structure.
5. Calculate the net present value (NPV) for each plane model using the company’s WACC as the hurdle rate.
6. Recommend which plane should be purchased and justify your recommendation.
7. Discuss the need to manage implementation of the project so that the higher returns can be realized.  Include the strategic management keys to protecting the project from competitive forces that would erode the earning power of the project and jeopardize realization of the projected rate of return on the investment.

To complete this assignment, you must submit a 6-8 page paper that addresses the seven elements of the task as listed above and exhibits your calculations of the cost of common stock, the weighted average cost of capital, and the NPV for each plane along with an explanation of the calculations.

The paper must be submitted as a Word document and it must follow APA style guidelines.

Assignment 1 Grading Criteria

Maximum Points

Described the role that capital budgeting should play in corporate strategic management.

32

Explained why NPV and IRR are superior to the accounting rate of return and simple payback techniques for determining the attractiveness of capital investment opportunities.

28

Calculated the cost of common stock using the Capital Asset Pricing Model.

28

Calculated the weighted average cost of capital (WACC) for the firm’s existing capital structure.

28

Calculated the net present value (NPV) for each plane using the company’s WACC as the hurdle rate.

36

Explained all calculations.

28

Recommended which plane should be purchased and justified the recommendation.

32

Described the need to manage implementation of the project and the strategic management keys to the realization of the projected rate of return on investment.

28

Written Components:

Style (8 points): Tone, audience, and word choice

Organization (16 points): Introduction, transitions, and conclusion

Usage and Mechanics (16 points): Grammar, spelling, and sentence structure

APA Elements (24 points): In text citations and references, paraphrasing, and appropriate use of quotations and other elements of style

60

Total:

300