Information System: Telstra Telecommunications

This report provides a detailed description of Telstra Telecommunications organization of Australia and the successful utilization of information system services with IT. It also covers the General Management Controls, Application Controls, Risk Management Techniques, and the importance of auditing information system.

Running head: INFORMATION SYSTEM
Information System: Telstra Telecommunications
Name of the Student
Name of the University
Author’s Note:

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1. Introduction
Information system can be defined as the well organized system to significantly
collect, store, organize as well as communicate or manipulate all types of data or information
(Kravets & Lapshina, 2013). Any type of processing, filtering, creation and distribution of
data is done with the information system. The most significant objective of this information
system is that they want to make all the functionalities and services of any particular
organization absolutely easier as well as technology oriented (Pearlson, Saunders & Galletta,
2016). This information system is thus extremely important and significant for all the
organizations.
The following report will depict a detailed description on Telstra Telecommunications
organization of Australia. The several services of information system and the successful
utilization of all those services with IT are clearly given here. The several General
Management Controls of this organization are provided here. Apart from the GMCs, the
Application controls and the proper comparison of GMCs and ACs will also be demonstrated
in the report. Moreover, the several techniques for managing the risks within Telstra will also
be explained here. The audit plan and processes are also given here.
2. Depiction of Services and Utilization of Information System
Telstra Telecommunications Corporation Ltd. or Telstra is one of the most significant
and famous organizations that deal with telecommunications in Australia (Telstra.com.au.,
2018). This particular organization is responsible for building as well as operating the various
kinds of telecommunications networks, accessibility of internet, market voices, television,
telephones and many others. Several other goods and services of telecommunications are also
produced by this organization for the betterment of the technological and telecommunications

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world. According to a survey in 2017, Telstra approximately provides 3.5 million broadband
services of fixed retail, 17.6 million services of mobile and 5.1 million of voice services of
fixed retail to Australia and its suburbs (Telstra.com.au., 2018). Telstra has decided to bring
out the best for the future generations and also has an objective of producing great features
for connection in the near future for everyone. The organization of Telstra is supposed to
provide services of information system for their customers or clients and even the employees
who are working with the motive that nobody ever faces any type of distortion of network.
The successful utilization of any type of networks, services of elements related to
telecommunications to make all the functions successful and efficient so that the business
remains without complexities and problems (Laudon & Laudon, 2015). The business
operations are extremely simplified with the involvement of information system. Since, the
business operations become easier and simpler, all the customers or the employees have the
capability to execute with ease and without even getting the knowledge of high technology.
The organization of Telstra Telecommunications has become explicitly popular and
significant for their unique business operations. All the services that the organization
provides to their employees and customers are solely related or linked with the
telecommunications (Van Der Aalst, La Rosa & Santoro, 2016). Any information or data that
is linked to telecommunications are extremely confidential and private and thus should not be
lost under any constraint. This confidentiality or integrity of data is solely maintained by the
presence of information system within the business (Whittington, 2014). Furthermore, Telstra
has to deal with huge amount of information or data. Thus, they utilize information system
for this purpose. The most significant benefits of the information system within the
organization of Telstra mainly include the simplicity in handling bulk amount of data and the
easy business operations. The next important advantage is that it helps to build the
communication between Telstra and its customers (Arvidsson, Holmström & Lyytinen.,

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2014). Communication is the most important requirement in Telstra and hence they should
utilize this communication system to maintain a healthy and good relation with the
customers. The availability of the services is another major factor in information system. This
customer care service of this particular organization of Telstra telecommunications is opened
for 24 hours and 365 days. The customer care person is always present for answering any
query of this organization. Information system is responsible for making the services
available for 24 hours and the customers can contact them with ease. Furthermore, it helps in
the successful reduction of cultural gaps and problems within the company and the business
is enhanced (Laudon & Laudon, 2015). Therefore, it can be termed as that any information
system is extremely important for the organization of Telstra Telecommunications.
3. General Management Controls
The General Management Controls or the GMCs can be defined as the controls for
management, which are eventually undertaken by any particular organizational management
bodies or other employees for the successful accomplishment of the organizational goals or
objectives (Galliers & Leidner, 2014). These general management controls are nothing but
the several methods of operation that help to enable the job to proceed with their work
according to the planning. The GMCs or the general management controls are used for
efficiently influencing the overall behaviour of organizational resources to properly
implement the strategies of an organization. The most significant requirement for the
implementation of any GMC or general management control is that they help in the reduction
or mitigation of all types of threats or risks related to the organization (Panetto & Cecil,
2013). The General Management Controls are responsible for forming the total foundation of
systems for internal control and hence, the organization gets defence or support for the risks
or threats. Furthermore, the General Management Controls of Telstra are generated on the

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basic three major factors. The first factor is standard setting, the second factor is the
measurement of perfect performance and the third factor is to take correct actions. The
General Management Controls of Telstra Telecommunication majorly involve the
maintenance of great relation with their customers and thus maintaining the CRM or
customer relationship management (Stair & Reynolds, 2013). Proper training is provided to
the staff members of Telstra and this is the second General Management Control of Telstra.
The compliance of laws or regulations or integrity is another important General Management
Control of Telstra.
4. Types of Application Controls
The ACs or the application controls of an organization are the practices of security
that are utilized to block as well as restrict each and every type of unauthorized or
unsanctioned application within any specific organization. There are several methodologies
present within the organization to check whether all the computer systems or applications are
properly working or not (Venkatesh, Brown & Bala, 2013). This helps to reduce the risks of
data integrity or confidentiality. Several types of application controls majorly include the
identification, control of input, checking of validity, completeness checking, forensic
controls, authentication and the authorization controls. Each and every type of these
application control are solely used in every organization to significant control various
computerized applications such as payroll systems, business applications, systems of online
learning and many more. These application controls are present in the business of Telstra
Telecommunications (Rainer et al., 2013). The several kinds of ACs or application controls
within the organization of Telstra are as follows:
i) Validity Checking: Validity checking is the first and the foremost application
control that helps to be sure that only correct or valid data is processed in the system.

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ii) Identification: The second important application control is the identification of all
the users without mistake.
iii) Completeness Checking: The third important application control is the control of
processing of ensured record right from beginning till end.
iv) Authentication: The next significant application control is the authentication so
that only authenticated members access the data.
v) Authorization: It provides authorization to only authenticated people (Davies,
Dean & Ball, 2013).
vi) Forensic Controls: The perfection of data is ensured by this.
vii) Input Controls: The integrity of data is maintained by these input controls.
5. Comparison of GMCs and ACs for Information Systems
A proper information system requires both the general management controls as well
as the application controls.
IT related general management controls are those specific policies or procedures that
are solely connected to the various applications of the organization (Whittington, 2014).
These types of GMCs are used for supporting the excellent functions of ACs by ensuring that
information system is properly continued. The main area of application of the general
management controls are the servers, mainframe and the environments of end user. GMCs
are significantly responsible for controlling all the network related operations, software
acquisition, maintenance as well as alterations, security access, development, data centre
control, application system acquiring and many more (Power, Sharda & Burstein, 2015).
Apart from these, the remaining information technology general management controls can be

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defined as the assets’ physical security by involving sufficient safeguards such as restricted
access to computer programs or data files.
The ACs or the application controls of IT can be referred to as those specific controls
that are related to computer software applications and also the transactions of individuals.
There are several important factors in the application controls of information technology.
They are the identification, control of input, checking of validity, completeness checking,
forensic controls, authentication and the authorization controls.
The ACs of information system is completely different from the GMCs of information
system as the ACs only help to control the applications or systems; however, the GMCs help
to control the management of the organization of Telstra (Arvidsson, Holmström &
Lyytinen., 2014).
6. Risk Management Techniques
a. Reliability, Confidentiality, Availability, Integrity and Security
The various techniques of risk management are exclusively adopted by Telstra for the
purpose to ensure that the reliability, confidentiality, availability, integrity and security are
maintained.
There are two techniques for ensuring these factors in Telstra. They are given below:
i) Avoidance: The risk of the organization can be avoided with perfection. Many
times, when risks are avoided, organizational threats get eliminated and thus this is a popular
technique.

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ii) Loss Prevention: The second significant technique is the loss prevention (Cassidy,
2016). This particular technique helps to successfully prevent or reduce the losses and thus
reliability is maintained.
b. Risk Identification, Risk Assessment and Risk Control
Risk identification, risk assessment and the risk control are the three next significant
factors in every organization. For the successful maintenance of these three factors, Telstra
organization has adopted risk management techniques to control risks. The two techniques
are given below:
i) Loss Reduction: The reduction of loss is the most significant technique for risk
identification, assessment and control in the organization. The entire process is executed
explicitly and thus could be termed as the safest mode of risk management technique.
ii) Separation: This is the second important risk management technique for risk
identification, assessment and control in Telstra. This particular technique includes various
important assets (Petter, DeLone & McLean, 2013). It helps to ensure that when all types of
catastrophe occur within the operation of a business, the risk is significant managed as well as
controlled by Telstra Telecommunications.
7. Importance of Auditing Information System
The specific survey that is done by all organizations for checking the utilization of
computer systems or any other resources is known as auditing. The process of auditing is
mainly done for keeping an eye on the activities of the employees that whether they are using
the organizational resources properly or not or whether they are misusing the computer
systems. It helps in the identification of culprits, and whoever are misusing the computer
systems.

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Telstra Telecommunications is extremely strict about their auditing and does audit
their information systems once in every seven days. Since, this organization has to deal with
various confidential data or information, all types of vulnerabilities or threats are possible to
their information system (Petter, DeLone & McLean, 2013). It is highly required for them to
check or audit the data quality and the information system. This would be extremely
beneficial for them.
Telstra has an audit plan for their business operations. The respective audit plan that
Telstra follows is as follows:
i) Identification of the Audit Engagement
ii) Definition of Requirement of Report
iii) Conflict of Interest Assessment (Arvidsson, Holmström & Lyytinen., 2014)
iv) Assessment of Risks
v) Access to the Important Records and Documents.
A strict process is maintained for audit in Telstra Telecommunications. The process is
as follows:
i) Notification of employees
ii) Discussion of Scope and Objectives
iii) Information gathering on important procedures
iv) Evaluation of existing controls
v) Execution of plan.

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8. Conclusion and Recommendations
Therefore, from the above discussion, conclusion can be drawn that information
system is the well organized system to significantly collect, store, organize as well as
communicate or manipulate all types of data or information. This information system can also
be defined as the collection of several elements that are used for interacting with one another
for the successful production of relevant data or information. The major focus of this
information system is given to the internal as well as external data. The various types of
information systems are solely used by each and every organization in the world. The above
report has clearly depicted a brief description on the entire concept of various services of
information system and the importance of information system in any organization. The
selected organization in this particular report is Telstra Telecommunications organization of
Australia. The various GMCs or the General Management Controls of Telstra
Telecommunications organization are mentioned here. Apart from these, the Application
controls or the ACs and comparison of ACs and GMCs are demonstrated here.
It is highly recommended to the organization of Telstra Telecommunications to
implement the information system within their business so that there exists no loophole in the
management and control of information technology or business operation within their
business. Moreover, information system has various significant advantages that would be
excellent for the organization.

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9. References
Arvidsson, V., Holmström, J. & Lyytinen, K., (2014). Information systems use as strategy
practice: A multi-dimensional view of strategic information system implementation
and use. The Journal of Strategic Information Systems, 23(1), pp.45-61.
Cassidy, A., (2016). A practical guide to information systems strategic planning. CRC press.
Davies, R.S., Dean, D.L. & Ball, N., (2013). Flipping the classroom and instructional
technology integration in a college-level information systems spreadsheet
course. Educational Technology Research and Development, 61(4), pp.563-580.
Galliers, R.D. & Leidner, D.E. eds., (2014). Strategic information management: challenges
and strategies in managing information systems. Routledge.
Kravets, O.J. & Lapshina, M.L., (2013). Mathematical and program software for designing
intranet-interfaces during competitive development of information systems. American
Journal of Control Systems an Information Technology, (2), p.11.
Laudon, K.C. & Laudon, J.P., (2015). Management Information Systems: Managing the
Digital Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice
Hall Press.
Panetto, H. & Cecil, J., (2013). Information systems for enterprise integration,
interoperability and networking: theory and applications.
Pearlson, K.E., Saunders, C.S. & Galletta, D.F., (2016). Managing and Using Information
Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.

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Petter, S., DeLone, W. & McLean, E.R., (2013). Information systems success: The quest for
the independent variables. Journal of Management Information Systems, 29(4), pp.7-
62.
Power, D.J., Sharda, R. & Burstein, F., (2015). Decision support systems. John Wiley &
Sons, Ltd.
Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. & Sanchez-Rodriguez, C.,
(2013). Introduction to information systems. John Wiley & Sons.
Stair, R. & Reynolds, G., (2013). Principles of information systems. Cengage Learning.
Telstra.com.au. (2018). Telstra - mobile phones, prepaid phones, broadband, internet, home
phones, business phones. [online] Available at: https://www.telstra.com.au/ [Accessed
07 Apr. 2018].
Van Der Aalst, W.M., La Rosa, M. & Santoro, F.M., (2016). Business process management.
Venkatesh, V., Brown, S.A. & Bala, H., (2013). Bridging the qualitative-quantitative divide:
Guidelines for conducting mixed methods research in information systems. MIS
quarterly, 37(1).
Whittington, R., (2014). Information systems strategy and strategy-as-practice: a joint
agenda. The Journal of Strategic Information Systems, 23(1), pp.87-91.