Chapter 4: Security Part II: Auditing Database Systems IT Auditing, Hall, 4eLearning Objectives * Understand the operational problems inherent in the flat-file approach to data management that gave rise to the database approach. * Understand the relationships among the fundamental component's of the database concept. * Recognize the defining characteristics of three database models: hierarchical, network, and relational. * Understand the operational features and associated risks of deploying centralized, partitioned, and replicated database models in the DDP environment. * Be familiar with the audit objectives and procedures used to test data management controls.Flat-File Approach * Associated with large, older legacy systems still in use today. * Promotes a single-user view approach where end users own rather than share data files. * Separate data sets for each user leads to data redundancy which causes problems with: * Data storage: Commonly used data duplicated multiple times within the organization. * Data updating: Changes must be made separately for each user. If updating fails problem of currency of information with users having outdated information. * Task-data dependency: Users cannot obtain additional information as needs change.Flat-File ModelDatabase Approach * Access to the data resource is controlled by a database management system (DBMS). * Centralizes organization’s data into a common database shared by the user community. * All users have access to data they need which may overcome flat-file problems. * Elimination of data storage problem: No data redundancy. * Elimination of data updating problem: Single update procedure eliminates currency of information problem. * Elimination of task-data dependency problem: Users only constrained by legitimacy of access needs. 15/01/201Database Model Integration User User View Software Shared Database Customer Sales Accounting —e| (Current Receivable) |-—| ‘Customer Salos D Customer Data Marketing <—e| (Historic! 8 Sales invoices ting pleas i Cash Receipts Onentaon) ——— Customer Sales thor Entity Data Product Services =-—»| (Histor! Product entation)Elements of the Database ConceptDBMS Features and Data Definition Language * Program Development — Applications may be created by programmers and end users. * Backup and Recovery - Copies made during processing. * Database Usage Reporting - Captures statistics on database usage (who, when, etc.). * Database Access - Authorizes access to sections of the database. * Data definition language used to define the database to the DBMS on three levels (views).Database Views * Internal view/ Physical view: Physical arrangement of records in the database. * Describes structures of data records, linkage between files and physical arrangement and sequence of records in a file. Only one internal view. * Conceptual view/ Logical view (schema): Describes the entire database logically and abstractly rather than physically. Only one conceptual view. * External view/ User view (subschema): Portion of database each user views. May be many distinct users.Data Manipulation Language (DML) * DML is the proprietary programming language that a particular DBMS uses to retrieve, process, and store data to / from the database. * Entire user programs may be written in the DML, or selected DML commands can be inserted into universal programs, such as COBOL and FORTRAN. * Can be used to ‘patch’ third party applications to the DBMSOverview of DBMS OperationInformal Access: Query Language * Query is an ad hoc access methodology for extracting information from a database. * Users can access data via direct query which requires no formal application programs. * IBM’s Structured Query Language (SQL) has emerged as the standard query language. * Query feature enhances ability to deal with problems that pop-up but poses an important control issue. * Must ensure it is not used for unauthorized database access.Functions of the Database Administrator (DBA) Database Planning: Implementation: Develop organization’s database strategy Define database environment Define data requirements Develop data dictionary Design: Determine access policy Implement security controls Specify test procedures Establish programming standards Operation and Maintenance: Logical database (schema) External users’ views (subschemas) Internal view of database Database controls Evaluate database performance Reorganize database as user neds demand Review standards and procedures Change and Growth: Plan for change and growth Evaluate new technologyOrganizational Interaction of the DBAThe Physical Database * Lowest level and only one in physical form. * Magnetic sports on metallic coated disks that create a logical collection of files and records. * Data structures are bricks and mortar of database. « Allows records to be located, stored, and retrieved. * Two components: organization and access methods. * The organization of a file refers to way records are physically arranged on the storage device - either sequential or random. * Access methods are programs used to locate records and to navigate through the database. 15/01/201Database Terminology * Entity: Anything organization wants to capture data about. * Record Type: Physical database representation of an entity. * Occurrence: Related to the number of records of represented by a particular record type. ¢ Attributes: Defines entities with values that vary (i.e. each employee has a different name). * Database: Set of record types that an organization needs to support its business processes.Associations * Record types that constitute a database exist in relation to other record types. Three basic record association: * One-to-one: For every occurrence of Record Type X there is one (or zero) of Record Type Y. * One-to-many: For every occurrence of Record Type X, there are zero, one or many occurrences of Record Type Y. * Many-to-many: For every occurrence of Record Types X and Y, there are zero, one or many occurrences of Record Types Y and X, respectively. 15/01/201Record AssociationsThe Hierarchical Model * Basis of earliest DBAs and still in use today. * Sets that describe relationship between two linked files. * Each set contains a parent and a child. * Files at the same level with the same parent are siblings. * Tree structure with the highest level in the tree being the root segment and the lowest file in a branch the leaf. * Also called a navigational database. * Usefulness of model is limited because no child record can have more than one parent which leads to data redundancy.Hierarchical Data ModelThe Network Model Customer Fle Salesperson FeThe Relational Model * Difference between this and navigational models is the way data associations are represented to the user. * Relational model portrays data in two-dimensional tables with attributes across the top forming columns. * Intersecting columns to form rows are tuples which are normalized arrays of data similar to records in a flat-file system. * Relations are formed by an attribute common to both tables in the relation.Data Integration in the Relational ModelCentralized Databases ina Distributed Environment * Data retained in a central location. * Remote IT units send requests to central site which processes requests and transmits data back to the requesting IT units. * Actual processing of performed at remote IT unit. * Objective of database approach it to maintain data currency with can be challenging. * During processing, account balances pass through a state of temporary inconsistency where values are incorrect. * Database lockout procedures prevent multiple simultaneous access to data preventing potential corruption.Distributed Databases: Partitioned Databases * Splits central database into segments distributed to their primary users. * Advantages: * Users’ control increased by having data stored at local sites. * Improved transaction processing response time. * Volume of transmitted data between IT units is reduced. * Reduces potential data loss from a disaster. * Works best for organizations that require minimal data sharing among units.The Deadlock Phenomenon * Occurs when multiple sites lock each other out of the database, preventing each from processing its transactions. * Transactions in a “wait” state until locks removed. * Can result in transactions being incompletely processed and database being corrupted. * Deadlock is a permanent condition that must be resolved with special software that analyzes and resolve conflicts. * Usually involves terminating one or more transactions to complete processing of the other in deadlock. * Preempted transactions must be reinitiated.The Deadlock Condition Ste 3Distributed Databases: Replicated Databases * Effective for situations with a high degree of data sharing, but no primary user. * Common data replicated at each site, reducing data traffic between sites. * Primary justification to support read-only queries. * Problem is maintaining current versions of database at each site. * Since each IT unit processes its own transactions, common data replicated at each site affected by different transactions and reflect different values.Concurrency Control * Database concurrency is the presence of complete and accurate data at all user sites. * Designers need to employ methods to ensure transactions processed at each site are accurately reflected in the databases of all the other sites. * Commonly used method is to serialize transactions which involves labeling each transaction by two criteria: * Special software groups transactions into classes to identify potential conflicts. * Second part of control is to time-stamp each transaction.Database Distribution Methods and the Accountant * Many issues and trade-offs in distributing databases. * Basic questions to be addressed: * Centralized or distributed data? * If distributed, replicated or partitioned? * If replicated, total or partial replication? * If partitioned, what is the allocation of the data segments among the sites? * Choices impact organization’s ability to maintain database integrity, preserve audit trails, and have accurate records.Controlling and Auditing Data Management Systems * Controls over data management systems fall into two categories. * Access controls are designed to prevent unauthorized individuals from viewing, retrieving, corrupting or destroying data. * Backup controls ensure tat the organization can recover its database in the event of data loss.Access Controls * User views (subschema) is a subset of the database that defines user’s data domain and access. * Database authorization table contains rules that limit user actions. * User-defined procedures allow users to create a personal security program or routine . * Data encryption procedures protect sensitive data. * Biometric devices such as fingerprints or retina prints control access to the database. * Inference controls should prevent users from inferring, through query options, specific data values they are unauthorized to access.Subschema Restricting Access Users ‘Subschema ‘Schema K\ tenn i = 15/01/2017Audit Procedures for Testing Database Access Controls * Verify DBA personnel retain responsibility for authority tables and designing user views. * Select a sample of users and verify access privileges are consistent with job description. * Evaluate cost and benefits of biometric controls. * Verify database query controls to prevent unauthorized access via inference. * Verify sensitive data are properly encrypted.Backup Controls in the Database Environment * Since data sharing is a fundamental objective of the database approach, environment is vulnerable to damage from individual users. * Four needed backup and recovery features: * Backup feature makes a periodic backup of entire database which is stored in a secure, remote location. * Transaction log provides an audit trail of all processed transactions. * Checkpoint facility suspends all processing while system reconciles transaction log and database change log against the database. * Recovery module uses logs and backup files to restart the system after a failure. 15/01/201Backup of Direct Access Files CurentAudit Procedures for Testing Database Access Controls * Verify backups are performed routinely and frequently. ¢ Backup policy should balance inconvenience of frequent activity against business disruption caused by system failure. * Verify that automatic backup procedures are in place and functioning and that copies of the database are stored off-site.