Department of Accounting & Law

State University of New York at Albany

 

 

Acc 661 Auditing of Advanced Accounting Information Systems

Spring, 2004

 

______________________________________________________________________________________

Welcome

 

Welcome to the world of Auditing of Advanced Accounting Information Systems. The emphasis in the course will be on gaining an in-depth understanding of the information security technologies necessary for auditing complex accounting information systems, and the auditing process itself.

 

The course will involve a healthy mixture of theory, applications, technologies, and constant exposure to late-breaking developments in the field. It is important that you get familiar with the working of unix as well as windows environments, since I will not be spending too much time on those topics. The knowledge you have gained in Acc 681 and Acc 682 should be adequate, and if new concepts are introduced, I will be discussing them in the class.

 

The course is rather fast paced, and rather formal in rigour in terms of the security modeling and its applications. It is therefore important that you keep up with the class at all times and not be left behind. Should you need help, seek it immediately.

 

Use the wonderful facilities in the Graduate Laboratory for Accounting Information Systems.

 

Enjoy!

 

 

 

 

Administrivia

Semester: Spring, 2004
Time:
T 4:15 — 7:05 PM
Room:
BA 223 (PriceWaterhouseCoopers Classroom)
Instructor:
Jagdish S. Gangolly 
Graduate assistants:
Sergey Romanov and Juri Kondratev
Office:
BA 365C
Phone:
(518) 442-4949
Fax:
(707) 897-0601 / (518) 442-3944
Office Hours: T 3:15:00 – 4:15 PM. or by appointment
Instructor Homepage: http://www.albany.edu/acc/gangolly

Course Homepage: http://www.albany.edu/acc/courses/acc661
Newsgroup: sunya.class.acc661

______________________________________________________________________________

 

 

 

 

 

 

Class Conduct:

The course consists of lectures, discussion of homework and book assignments, your presentation of assigned topics, some programming, and security lab tutorials. You are expected to have done  the readings well ahead of the class. Class time is to be used for the clarification of any doubts that you may have. Do not expect to merely listen to the instructor and gain knowledge. A sound understanding of the theory and its use in practice is essential to excel in the field. You are required to demonstrate competence in the topics covered in order to receive an acceptable grade. I  may give occasional homework assignments. I also shall be calling upon some of you to come to the board and discuss  problems either in the textbooks, other sources, or homework assigned. Each Thursday, you may be presenting before the class research that you have conducted on the important developments in the information security and auditing field during the previous week. I shall be linking the list of issues to be researched to this page.

Software:
You are strongly urged NOT to use any security related software on any of the machines on campus except in the CyberSecurity Lab. Such use may be a violation of the University policy on computing. 

Newsgroup/e-mail:
I shall be using the class newsgroup (sunya.class.acc661) extensively for making announcements regarding tests, homework, quizzes (if any), added links to this course homepage, etc. In fact, the newsgroup will be the primary means of communication between us outside of the class. You should post to the newsgroup all your questions and doubts for clarification. You are strongly encouraged to answer queries posted by others, and such responses will count towards class participation points for grading. You should communicate with me via e-mail only for individual problems and questions.


Access to The
Graduate Laboratory for Accounting Information Systems:
As a graduate student in the Department, you have access to the Graduate Laboratory for Accounting Information Systems. You will need to get from Ms. Lisa Scholz the password to enter the lab. Contact her in BA 365 as soon as possible. Should you have special requirements for software (DBMS servers) or hardware (Windows 2000 Servers) for your projects, let me know, and arrangements will be made for your access. You may use there only software that is announced in the class. Use of any security related software without permission is not allowed.

You also will need logins to the University unix cluster and the Department's Windows 2000 server. You will need to apply on-line for an account on the unix cluster, and contact the Graduate Assistants regarding login for the Windows 2000 server. You can not use any machine in the lab without these logins.

Academic Dishonesty:

I take academic dishonesty very seriously, and will not hesitate to impose the severest penalty that the University Policies allow an instructor. You are expected to familiarize yourselves with the policies set out in http://www.albany.edu/judicial_affairs/standardsofconduct.html

 

“Conduct including, but not limited to, plagiarism, cheating, multiple submission, forgery, sabotage, unauthorized collaboration, falsification, bribery or use of purchased research service reports without appropriate notation; and theft, damage or misuse of library or computer resources. Attempts to commit such acts shall also constitute academic dishonesty. Students assume full responsibility for honesty in academic exercises.”

 

I will not accept any submissions in the course unless they are accompanied by a statement, signed by you,  to the effect that you have read and understood what constitutes academic dishonesty.

 

 

Course Objectives:

 

 

Catalog Description:

Auditing of modern complex accounting information systems. General & application controls and the design & development of generalized audit software. Auditing of operating systems and database management systems. Privacy & security of data in accounting systems. Audit of on-line systems, management systems.

Prerequisite: Acc 681 and Acc 512 or equivalent.

 

An Honest Description:

Modeling security. Cryptography. Watermarking & Steganography. Operating Systems security.Trust Modeling.  Intrusion Detection & Signature Analysis.Privacy & Security. Database Security. Legal & Ethical aspects of security.

 

Textbooks and Readings:

 

·       Recommended:               

o      Incident Response: Computer Forensics Toolkit
by Douglas Schweitzer

ISBN: 0764526367
Publisher: Prentice Hall Professional Technical Reference
(DS in the schedule)

 

In addition to the above textbooks, I expect to rely considerably on the following for my lectures. You will be expected to read them carefully as I assign them:

 

An Introduction to Computer Security: The NIST Handbook, Special Publication 800-12, National Institute of Standards and Technology, Technology Administration, U.S. Department of Commerce

 

Generally Accepted Principles and Practices for Securing Information Technology Systems, by Marianne Swanson and Barbara Guttman, National Institute of Standards and Technology, Technology Administration, U.S. Department of Commerce (September 1996)

 

Generally Accepted System Security Principles, International Information Security Foundation (1999)

 

Information Security Guideline for NSW Government – Part 1 Information Security Risk Management,  Office of Information & Communications Technology, Department of Commerce,  NSW Government, Australia (1997)

 

Information Security Guideline for NSW Government – Part 2 Examples of Threats and Vulnerabilities, Office of Information & Communications Technology, Department of Commerce,  NSW Government, Australia (1997)

 

Information Security Guideline for NSW Government – Part 3 Information Security Baseline Controls, Office of Information & Communications Technology, Department of Commerce,  NSW Government, Australia (1997)

 

During the semester, I shall be referring off and on to some of the following readings in Information Security. I also may assign specific items for you to review individually.

 

Guide to Information Technology Security Services: Recommendations of the National Institute of Standards and Technology, by Tim Grance, Joan Hash, Marc Stevens, Kristofor O’Neal, and Nadya Bartol,  Special Publication 800-35, Computer Security Division Information Technology Laboratory National Institute of Standards and Technology Gaithersburg, MD 20899-8930 (October, 2003)

 

Guide to Selecting Information Technology Security Products: Recommendations of the National Institute of Standards and Technology, by Timothy Grance, Marc Stevens, and Marissa Myers,  Special Publication 800-36, Computer Security Division Information Technology Laboratory National Institute of Standards and Technology Gaithersburg, MD 20899-8930 (October, 2003)

 

Guideline on Network Security Testing: Recommendations of the National Institute of Standards and Technology, by John Wack, Miles Tracy, and Murugiah Souppaya,  NIST Special Publication 800-42, Computer Security Division Information Technology Laboratory National Institute of Standards and Technology Gaithersburg, MD 20899-8930 (October, 2003)

 

Security Considerations in the Information System Development Life Cycle: Recommendations of the National Institute of Standards and Technology, by Tim Grance, Joan Hash, Marc Stevens, Special Publication 800-64, Computer Security Division Information Technology Laboratory National Institute of Standards and Technology Gaithersburg, MD 20899-8930 (October, 2003)

 

Guide for Developing Security Plans for Information Technology Systems, by  Marianne Swanson, Federal Computer Security Program Managers’ Forum Working Group, National Institute of Standards and Technology,  NIST Special Publication 800-18, (December 1998)

 

 

Risk Management Guide for Information Technology Systems:  Recommendations of the National Institute of Standards and Technology, by Gary Stoneburner, Alice Goguen, and Alexis Feringa,  NIST Special Publication 800-30 (2001)

 

 

Intrusion Detection Systems, by  Rebecca Bace and Peter Mell, NIST Special Publication on Intrusion Detection Systems.

 

 

Wireless Network Security: 802.11, Bluetooth and Handheld Devices, by Tom Karygiannis and Les Owens, Special Publication 800-48, Computer Security Division Information Technology Laboratory National Institute of Standards and Technology Gaithersburg, MD 20899-8930 (November, 2002)

 

Introduction to Public Key Technology and the Federal PKI Infrastructure, by D. Richard Kuhn, Vincent C. Hu, W. Timothy Polk, and Shu-Jen Chang, National Institute of Standards and Technology (February 2001)

 

Underlying Technical Models for Information Technology Security: Recommendations of the National Institute of Standards and Technology , by Gary Stoneburner, NIST Special Publication 800-33, Computer Security Division, Information Technology Laboratory, National Institute of Standards and Technology, Gaithersburg, MD 20899-8930 (2001)

 

Contingency Planning Guide for Information Technology Systems: Recommendations of the National Institute of Standards and Technology, by Marianne Swanson, Amy Wohl, Lucinda Pope, Tim Grance, Joan Hash, and  Ray Thomas, NIST Special Publication 800-34 (2002)

 

 

Requirements

The classes will consist of lectures, solution of problems, discussion of papers and occasional programming exercises. There will be weekly student research presentation,  an in-class test, and a term paper requirement to complete the course.

Grading

The final course grade is dependent on the following factors:

·       100 points: Test (In class open book/notes or take home. Details will be announced in the class and updated here)

·       100 points: Individual class presentations through out the semester

·       200 Points: Individual Term paper (50-100 pages, based on individual presentations above)

·       0 - 50 points: Homework,  if and when given

·       25 points: Class participation

·       425 - 475 points: Total points (max)

The final course grade is strictly relative, based on the total points scored.

The grades, once assigned can not be changed except in case of errors in grading. Under no circumstances is it possible to do extra credit work to improve the grade.

 

 

 

 

 

 

 

 

 

Department of Accounting & Law

State University of New York at Albany

 

 

Acc 661 Auditing of Advanced Accounting Information Systems

Spring, 2004

J Gangolly

Tentative Schedule

 

 

 

January 27, 2004

Theme:           Introduction to Information Assurance

 

Topics:           Threats, vulnerabilities, information characteristics, Overview of Information Assurance.

[c.a. INFOSEC Overview: c.a.1 threats; c.a.2 vulnerabilities; c.a.3 critical information characteristics (c.a.3.i confidentiality; c.a.3.ii integrity; c.a.3.iii availability); c.a.4 information states (c.a.4.i transmission; c.a.4.ii storage; c.a.4.iii processing); c.a.5 security countermeasures (c.a.5.i technology; c.a.5.ii policy, procedures and practices; c.a.5.iii education, training and awareness)

c.b. Operations Security (OPSEC) (c.b.1OPSEC process; c.b.2 INFOSEC and OPSEC interdependency, c.b.3 unclassified indicators; c.b.4 OPSEC surveys/OPSEC planning)

d.a. National Policy and Guidance (d.a.1. AIS security; d.a.2. communications security; d.a.3. protection of information; d.a.4. employee accountability for agency information)

d.b. Threats to and Vulnerabilities of Systems (d.b.1. definition of terms (e.g., threats, vulnerabilities, risk); d.b.2. major categories of threats (e.g., fraud, Hostile Intelligence Service (HOIS), malicious logic, hackers, environmental and technological hazards, disgruntled employees, careless employees, HUMINT, and monitoring); d.b.3. threat impact areas;

d.c. Legal Elements (d.c.1. fraud, waste and abuse]

 

Readings:       PP: Ch.1. FB: Ch.4 (pp.93-100). ES: Ch.1.

An Introduction to Computer Security: The NIST Handbook, Special Publication 800-12, National Institute of Standards and Technology, Technology Administration, U.S. Department of Commerce (You will continue to read this during the semester)
Generally Accepted System Security Principles, International Information Security Foundation (1999)

 

 

February 3, 2004

Theme:                       Cryptography & Communications Security I

 

Topics:                       Encryption algorithms (substitution ciphers, transpositions), Secure encryption algorithms, Stream & Block ciphers, Data Encryption Standard (DES), Advanced Encryption Standard (AES), Symmetric and Asymmetric (Public Key) Encryption: RSA and El-Gamal encryption, Key management, Digital Signatures, Digital Certificates: X.509 certificates, Certificate management, Establishment of trust in E-Commerce.
[c.d. INFOSEC: c.d.1 cryptography (c.d.1.i  strength (e.g., complexity, secrecy, characteristics of the key); c.d.1.ii encryption (e.g., point-to-point, network, link); c.d.1.iii key management (to include electronic key);  d.g. Concepts of Trust (d.g.1. policy; d.g.2. mechanism; d.g.3. assurance)


g.g.        Cryptosecurity: (g.g.1. encryption/decryption method, procedure, algorithm; g.g.2. cryptovariable or key; g.g.3. electronic key management system); g.h. Key Management: (g.h.1. identify and inventory COMSEC material; g.h.2.       access, control and storage of COMSEC material; g.h.3. report COMSEC incidents; g.h.4. destruction procedures for COMSEC material; g.h.5. key management protocols (bundling, electronic key, over-the-air rekeying)
]

 

Readings:       PP: Ch.2.

 

February 10, 2004

Theme:           Cryptography & Communications Security  II

 

Topics:           Continuation of previous week.

 

Readings:       PP: Ch.2.

 

February 17, 2004  NO CLASS

 

February 24, 2004

Theme:           Program/Application Security

 

Topics:           Secure Programs, Non-malicious errors (buffer overflows, incomplete mediation, Time-of-check to Time-of-use errors), Malicious code (virus, Trojan horse, logic bomb, time bomb, trapdoor, worm, rabbit), Virus signatures, Execution patterns, Polymorphic viruses, Covert channels: storage and timing channels, Controls against program threats, Administrative controls. Script Kiddie Exploit Trolling, Stack-Based Buffer Overflow Attacks, Password Attacks, Web Application Attacks, Sniffing, Snorting, IP Address Spoofing, Session Hijacking, Network Tools, DoS Attacks.

 

Readings:       PP: Ch. 3. ES: Ch.7,8,9.

 

March 2, 2004

Theme:           Operating Systems Security, Security Modeling & Trusted Operating Systems

 

Topics:           Memory & Address Protection, Access Controls and User Authentication. Security Policies, Lattice Models of Access Security: Bell-La Padula Model, Biba Integrity Model, Graham-Denning Model, Harrison-Rizzo-Ullman Results, Security Features of Ordinary Operating Systems, Orange Book Evaluation, Information Technology Security Evaluation Criteria (ITSEC).

 

Readings:       PP: Ch.4, 5

 

March 9, 2004

Theme:           Database Security

 

Topics:           Database Integrity, Confidentiality, Availability, Auditability, Security vs. Precision, Direct & Indirect Attacks, Controls for Statistical Inference Attacks, Multilevel Databases & Security, Distributed Databases & Security.

 

Readings:       PP: Ch.6.

 

 

 

March 16, 2004

Theme:           Network Security

 

Topics:           Threats, Protocol Flaws: Impersonation, Spoofing, Session Hijacking, Message Confidentiality Tests, Message Integrity Tests, Web Site Defacement, Denial of Service, Threats to Active or Mobile Code, Network Security Controls, Firewalls, Intrusion Detection Systems, Secure E-mail.

 

Readings:       PP: Ch.7.

 

 

March 23, 2004

Theme:           Information Technology Risk Management & Protection/Security Measures

 

Topics:           [d.e. Concepts of Risk Management (d.e.1. threat and vulnerability assessment, d.e.2. cost/benefit analysis of controls; d.e.3. implementation of cost-effective controls; d.e.4. consequences (e.g., corrective action, risk assessment); d.e.5. monitoring the efficiency and effectiveness of controls (e.g., unauthorized or inadvertent disclosure of information));
f.b. Risk Management ( f.b.1.        information identification; f.b.2. roles and responsibilities of all the players in the risk analysis process; f.b.3. risk analysis and/or vulnerability assessment components; f.b.4. risk analysis results evaluation; f.b.5. corrective actions; f.b.6. acceptance of risk (accreditation))
(c.d.2 transmission security; c.d.3 emanations security; c.d.4      physical, personnel and administrative security; c.d.5 computer security; c.d.5.i identification and authentication; c.d.5.ii       access control; c.d.5.iii audit; c.d.5.iv object reuse)

d.h. Modes of Operation (d.h.1. dedicated; d.h.2. system-high; d.h.3. compartmented/partitioned; d.h.4. multilevel)]
d.j. Facets of NSTISS ( d.j.1. protection of areas; d.j.2.           protection of equipment; d.j.3. protection of passwords; d.j.4.     protection of files and data; d.j.5. protection against malicious logic; d.j.6. backup of data and files; d.j.7. protection of magnetic storage media; d.j.8. protection of voice communications; d.j.9. protection of data communications; d.j.10. protection of keying material)]
[g.a. Physical Security Measures ( g.a.1. building construction; g.a.2. alarms; g.a.3. information systems centers; g.a.4. communications centers; g.a.5. shielding; g.a.6. cabling; g.a.7. filtered power; g.a.8. physical access control systems (key cards, locks and alarms); g.a.9. stand-alone systems and peripherals; g.a.10. environmental controls (humidity and air conditioning); g.a.11. fire safety controls; g.a.12. storage area controls; g.a.13. power controls (regulator, uninterrupted power service (UPS), and emergency poweroff switch); g.a.14. protected distributed systems)]

 

Readings:        Generally Accepted Principles and Practices for Securing Information Technology Systems, by Marianne Swanson and Barbara Guttman, National Institute of Standards and Technology, Technology Administration, U.S. Department of Commerce (September 1996)

 

March 30, 2004

Theme:           Security Policy/Procedures and Controls

 

Topics:           [d.i. Roles of Various Organizational Personnel ( d.i.1. senior management; d.i.2. program or functional managers; d.i.3. system manager and system staff; d.i.4. telecommunications office and staff; d.i.5. security office; d.i.6. COMSEC custodian; d.i.7. INFOSEC Officer; d.i.8.  information resources management staff; d.i.9.      audit office; d.i.10. OPSEC managers; d.i.11. end users; d.j.11. application of cryptographic systems; d.j.12.        transmission security countermeasures (e.g., callsigns, frequency, and pattern forewarning protection); d.j.13. reporting security violations)
e.c. Agency Specific Security Policies ( e.c.1. guidance; e.c.2. roles and responsibilities; e.c.3. points of contact)
e.d.   Agency Specific AIS and Telecommunications Policies ( e.d.1. points of contact: e.d.2. references]

[g.b. Personnel Security Practices and Procedures ( g.b.1. position sensitivity; g.b.2. employee clearances; g.b.3. access authorization/verification (need-to-know); g.b.4. security training and awareness (initial and refresher); g.b.5. systems maintenance personnel; g.b.6. contractors)
g.e. Administrative Security Procedural Controls ( g.e.1. external marking of media; g.e.2. destruction of media; g.e.3. sanitization of media; g.e.4.            construction, changing, issuing and deleting passwords; g.e.5. transportation of media; g.e.6. reporting of computer misuse or abuse; g.e.7. preparation of security plans; g.e.8. emergency destruction; g.e.9. media downgrade and declassification; g.e.10. copyright protection and licensing; g.e.11.       documentation, logs and journals; g.e.12. attribution; g.e.13. repudiation)]

 

Readings:       ES: Ch.5,6.
 Generally Accepted Principles and Practices for Securing Information Technology Systems, by Marianne Swanson and Barbara Guttman, National Institute of Standards and Technology, Technology Administration, U.S. Department of Commerce (September 1996)

 

April 6, 2004

Theme:           Incident Handling, Forensics, and Legal Aspects of Security      

 

Topics:           [c.c. Information Security ( c.c.1 policy; c.c.2 roles and responsibilities; c.c.3 application dependent guidance)
d.c.2. criminal prosecution; d.c.3. evidence collection and preservation; d.c.4. investigative authorities)
d.d. Countermeasures ( d.d.1. cover and deception; d.d.2. HUMINT; d.d.3. monitoring (e.g., data, line); d.d.4.          technical surveillance countermeasures; d.d.5. education, training, and awareness; d.d.6. assessments (e.g., surveys, inspections))


Readings:      

 

April 13, 2004

Theme:           No Class (Spring Break)

 

April 20, 2004

Theme:           Security planning, disaster planning

Topics:           [f.a. Security Planning (f.a.1. directives and procedures for NSTISS policy f.a.2. NSTISS program budget; f.a.3. NSTISS program evaluation; f.a.4. NSTISS training (content and audience definition)
f.d. Contingency Planning/Disaster Recovery : ( f.d.1. contingency plan components; f.d.2. agency response procedures and continuity of operations; f.d.3. team member responsibilities in responding to an emergency situation; f.d.4.  guidelines for determining critical and essential workload; f.d.5. determination of backup requirements; f.d.6. development of procedures for off-site processing; f.d.7. development of plans for recovery actions after a disruptive event; f.d.8. emergency destruction procedures]

 

 

 

 

 

 

 

 

 

 

April 27, 2004

Theme:.          FLOAT

 

May 4, 2004

Theme:           Security planning, disaster planning

Topics:           [g.f. Auditing and Monitoring (g.f.1. effectiveness of security programs; g.f.2. conducting security reviews; g.f.3. verification, validation, testing, and evaluation processes; g.f.4. monitoring systems for accuracy and abnormalities; g.f.5. investigation of security breaches; g.f.6. review of audit trails and logs; g.f.7. review of software design standards; g.f.8. review of accountability controls; g.f.9. privacy)]

 

Readings:       Generally Accepted Principles and Practices for Securing Information Technology Systems, by Marianne Swanson and Barbara Guttman, National Institute of Standards and Technology, Technology Administration, U.S. Department of Commerce (September 1996)

 

 

May 11, 2004

Test &  Term Paper Presentations

 

 

Updated on January 26, 2004 by Jagdish S. Gangolly (j.gangolly@albany.edu