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, costs and so forth, are all need precaution from the operation of the organization. However, proper selection of software, execution of internal control and other precaution measures may help relieve from the threats.IntroductionWith rapid development ...view middle of the document...
Though these problems have been emerged since the manual accounting information system, the new computer-based accounting information system makes it easier for the internal personnel to cheat. Because the computer has a speed that is unprecedentedly fast and can process complex information which facilitate the fraudulent activities.One of the most common types of the fraudulent activities is unauthorized access of the accounting information system, which means that people without proper authorization access to the data stored in the accounting information for illegal purposes, such as copy the key information for the competitors of the organization or saving the value information for personal use. According to the Computer Misuse Act, the following aspects of unauthorized access are illegal, "unauthorized Access to Computer Material, unauthorized Access to Computer systems with intent to commit another offense and unauthorized Modification of Computer Material" (Tricia Ellis-Christensen, 2010) These offenders may be the employee who in charge of the information system or the program designer with advanced technology to access the information system. These employee may encouraged by the financial gain by the outsiders or just want to revenge to the company after certain unpleasant affairs with the organization. To prevent this occur, "make sure a password has been set on computer. Default passwords such as password, root, admin or no password will allow easy access to your computer or your Internet account." (Computer hope, 2010) this means passwords and relevant authorization are suggested to prohibit the outsides accessing the information system. In addition, read only access also ensure the safety of the data stored in the information system.Another typical fraudulent activity is to distort the information for personal gain. For example, the inventory on hand is accounted at the end of the period and may be different from the real amount due to the loss or damage. Thus the related internal employee may collude to understate the amount of the inventory and illegally sell or take up certain amount of inventory. The means to prevent such threat involve the division of work and staff rotating. On one hand, assigning specific job to different employees can reduce the possibility of stealing inventory as supervision staff can monitor the operation of the employee designate to the inventory transaction. On the other hand, staff rotating makes it difficult for the internal employee to fraud due to the familiarity with the certain procedures and with the relevant employee who are in charge of the operation such as inventory transactions.Besides the threat that comes from the personnel, the computerized accounting information system also gave the top management a handle to fraud in order to withhold the information from the investors to increase or sustain stock price. To demonstrate this threat we need look no further than the Enron Scandal, which...
