This website uses cookies to ensure you have the best experience. Learn more

Computerized Accounting System Threats In Malaysian Public Services

3723 words - 15 pages

Computerized Accounting System Threats in Malaysian Public Services

Mahlindayu binti Tarmidi1, Azwan Abdul Rashid2, Mohmad Sakarnor bin Deris3, Rusli Abdul Roni4

1Department of Accounting. College of Business Management and Accounting, Universiti Tenaga Nasional, Bandar Muadzam Shah. 26700 Pahang
4Deprtment of Business and Accounting, College of Foundation and General Studies, Universiti Tenaga Nasional, Bandar Muadzam Shah. 26700 Pahang


Abstract Numbers of incidents pertaining data errors, system breach, violation of internal control and manipulation of financial information had raised the organization attention and concern. Organizations are consequently more aware of the ...view middle of the document...

In 1992, the government introduced the Macro Accounting System (MAS), which was designed to facilitate the collection, processing and preparation of the cost information, prepare information on cost efficiently and in a more flexible manner, produce reliable cost information and contribute to the optimization of the use of resources [1]. In 2006, Government Financial Management and Accounting System (GFMAS) was introduced to the Accounting General Department (AGD) of Malaysia. GFMAS helps to smoothen the financial planning, budget control and Government accounts. It combines all the accounting functions such as payment, receipts, managing salaries, Government loans, Loans and Advances to public servants. The GFMAS can record a complete budget planning, flexible to cash and accrued account, and increase the security [2].

The development showed the vital role played by Computerized accounting system (CAS) in providing most appropriate and a clear picture of accounting information’s in a systematic manner. The presence of growing security threats has result in lack of confidentiality, integrity and availability of the information which affects the business activities of many organizations. Recently, CAS involves use of present technological advances. Besides make a revolution in traditional paper methods of accounting. But on the other hand, the rapid changes in technology had created significant risks in ensuring the security and integrity of CAS [3].
Focusing in the computerised accounting environment, number of studies prevail the internal forces which contributed to information security threats. Employees may play a vital role if they are not fully train and enforced the awareness about system security. Among the incident happened as a result of employees weakness are accidental entry of bad data, accidental destruction of data, intentional data destruction, misinterpreted of data, misused of data and improper use of data. ([4], [5], [6] and [7]. [8] supported in his study which proof that the most threats to organisation information system are from insider not outsider.
In the context of Malaysia, a study was done by [9]. One of the discussions on security incidents in Malaysia Public Service Organisation, highlighted that 25% of the incidents were originated by insiders, 11% was the combination of internal and external forces. This actually in line with the survey result by [10] and [11], which indicate that most threat to information security are from inside the organisation
As reported by [12], the increase in the number of reported cyber incidents imply that the issue of security in computerised accounting system (CAS) is noteworthy. The effect of such incidents could leave the investor wary and lacking faith in the integrity of published financial reports, and to a certain extent, leading to legal liabilities and severe financial damages [13]. According to [4], the AICPA technology division recognised the importance of CAS...

Other Essays Like Computerized Accounting System Threats in Malaysian Public Services

Virtual Bookkeeping Essay

2657 words - 11 pages programme of the European Objective One. 3. My educational and professional background includes graduate of Public Adminstration and finance specializing in Accounting and Business Management, completion of Certified bookkeepers programme and delivered bookkeeping and computerized accounting training. Am also undertaking a teaching qualification training PTLLS, which will enhance my training and support for the network bookkeepers and the

The Effects of Technology on the Accounting Profession

965 words - 4 pages information based on raw data. They extend beyond just accounting and allow businesses to also incorporate finance, marketing, human resources and production. A computerized accounting system records accounting transactions using a computer and accounting software. It is one of the database-oriented applications wherein the transaction data is store in a well-organized database. The user operates on this database using the required interface and

Auo 1 Study

2528 words - 11 pages first created them to their final destinations. 3. How is the accounting information system documented? An accounting information system is a collection of data and processing procedures that creates needed information for its users. An information system's components: Data or information is input, processed, and output as information for planning, decision-making, and control purposes. 4. What are effective coding systems used in AIS? 1

Issue in Corporate Governance

3641 words - 15 pages €œintended to protect the shareholders of public companies against the possibility that the value of their investment will be eroded by a related party arranging for them to enter into a transaction which gives a benefit to their related party.” *3.3 SOURCES OF MALAYSIAN/AUSTRALIAN* CORPORATE LAW Corporate law in Malaysia is primarily governed by the provisions of the Companies Act 1965 which was based on the United Kingdom Companies Act 1948 and the

Financial System of Malaysia

2229 words - 9 pages . Chart 1: The Financial System Structure in Malaysia 1.2 Banking System The banking system consists of Bank Negara Malaysia (Central Bank of Malaysia), banking institution (Commercial banks, finance companies, merchant bank and Islamic banks) and the miscellaneous group (discount houses and representative offices of foreign banks). The banking system is the largest component of the financial system, accounting for more than 70% of the total

Accounts Computers in Acounting

1732 words - 7 pages , Accounts Payable and Receivable, Fixed Assets, and so on..  Importance It speeds the bookkeeping process and increases accuracy thereby reducing labor costs. But most importantly, a computerized accounting system is a powerful tool, allowing you easily extract data in order to prepare reports and analyze the information. Reviewing and acting upon a well designed, comprehensive set of reports (in addition to the Financial Statements) will help keep the

Accounting Research

934 words - 4 pages Evidence from Vietnam of Public Sector in Current Conditions In recent years, Vietnam has made a significant progress in completing the legal system in general and the regulations on accounting and auditing in particular, including the regulations to ensure the efficient management of public expenditure and to create a more favorable environment for the operations of the public sectors (Kara, 2012). The actual implementation of current legal


566 words - 3 pages decisions. Cost Accounting and other Accounting Subjects: Accounting can be described as a specialized information system that is used for purposes of decision making by the management of the organization and other users such as tax authorities, investors, creditors and the general public. Accounting is broadly divided into two: i. Financial Accounting ii. Management Accounting Financial Accounting: This is the analysis

Computer Information System Paper

1056 words - 5 pages systems. Threats of Current Systems A major threat to the current accounting system entails the use of the public internet for transmitting data and funds the absence of written policies that oversees security of the finance, and accounting systems. The chance of human error and deceitfulness by employees, and security of company information and its customers are also a risk with the

Enrollment System

1674 words - 7 pages CHAPTER 2 REVIEW OF RELATED LITERATURES AND RELATED STUDIES This chapter presents the review of related issues of the Data Collection and Computerized Student Record Keeping. It will discuss how the system relates on some issues and articles. RELATED LITERATURES Private Basic Education School of Tanza, Cavite The computerized enrolment system for selected private basic schools in Tanza, Cavite was developed in response to the

Health Care Information Systems Terms

1080 words - 5 pages means a provider of medical or health services. Health care clearinghouse means a public or private entity, ("Covered entity (hipaa)," 2005). 10. Health information exchange Definition Health information exchange is the mobilization of healthcare information electronically across organizations within a region, community or hospital system. How Used in Healthcare Health information exchange provides the capability to electronically move

Related Papers

Perceived Threats Of Computerized Accounting Information System And Provides Suggestions On How To Prevent The Occurrence Of These Potential Dangers

1978 words - 8 pages AbstractThis essay briefly introduces the perceived threats of Computerized Accounting Information System and provides suggestions on how to prevent the occurrence of these potential dangers. Though the computer technology makes the accounting operation more accurate and faster, this still involves several threats in terms of the security and reliability of the accounting information. Fraudulent activities, management cheats, virus infection

Ethical Risks And Threats In The Accounting Profession

2316 words - 10 pages Ethical risks and threats in the accounting profession Accounting ethics is primarily the study of moral values and judgments as they apply to accountancy. Accounting ethics were first introduced by Luca Pacioli in 1494 in his book “Summa de arithmetica, geometria, proportioni, et proportinalita”, and later expanded by government bodies, professional organizations and independent companies (Humphrey 2005). Throughout 2001 and 2002, the

Public Service Delivery System In Orissa: India

1050 words - 5 pages revenue. Updated records from Tehsil can be transmitted online to computerized cell of Land Acquisition Office and remaining processes will automatically follow. 4. Setting up an effective system in Tehsil, Registration, and Land Acquisition Offices for providing information to and redressing grievances of common people. While computerization would be an effective solution for a major portion of the problems relating to Revenue Public

In Both The Uk And The Us, The Prison System Is Being Increasingly Contracted Out To The Private Sector, Often Public Corporations. (The Largest Of These Is The Corrections Corporation Of America, A...

2059 words - 9 pages  contributed  equally  to  this  report.       In  both  the  UK  and  the  US,  the  prison  system  is  being  increasingly  contracted   out   to   the   private   sector,   often   public   corporations.   (The   largest   of   these   is   the   Corrections   Corporation   of   America,   a   NYSE   listed