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 . 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 .
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 .
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. (, ,  and .  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 . 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  and , which indicate that most threat to information security are from inside the organisation
As reported by , 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 . According to , the AICPA technology division recognised the importance of CAS...