ITGCs

IT General Controls (ITGCs) are a set of overarching controls aimed at ensuring the proper operation of an information technology environment and the reliability of data that underpins financial reporting and other business processes. They pertain to the IT infrastructure, applications, and the people who interact with them, rather than to any single software function. The objective of ITGCs is to prevent and detect errors, fraud, and disruptions caused by information systems failures.

Key components of ITGCs include logical access controls, change management, program development and systems development lifecycle controls, and operations and physical/environmental controls. Logical access controls cover processes such as user provisioning, access reviews, password policies, and management of privileged accounts. Change management involves formal change requests, testing and approval, version control, and documentation to ensure changes are properly authorized and implemented. Program development and SDLC controls address project governance, development standards, acceptance testing, and controlled deployment. Operations controls include job scheduling, backup and recovery, incident management, and monitoring of system performance. Physical and environmental controls address data center security, power, climate control, and disaster recovery readiness.

ITGCs are a fundamental element in audits of financial reporting and are often assessed against frameworks such as COSO or COBIT. They are particularly relevant for maintaining integrity and availability of financial data, and for evaluating the effectiveness of internal control over financial reporting (ICFR). In practice, auditors test the design and operating effectiveness of ITGCs, and management must remediate identified deficiencies. With increasing reliance on cloud services and third-party providers, governance and oversight of outsourced ITGCs have become essential components of risk management.