Accounting Information System Security

As such, our company’s people resources pose the greatest risk for security breach. Our way to help mitigate risk in this area is to keep communication lines open in this area and to continually mandate security knowledge training, with mandatory updates on a regular basis. When the employees are informed of company policy when facing a security matter, they are better equipped to act in the best or right way. In this way knowledge is power – or at least empowerment to act in the best interest of the company’s information security.

All recorded data related to accounting can be managed under the accounting information system database. The confidential information in AIS must be available and protected with authorizations only each division should have access to. Each user has a personal identification and authentic password for authorization to the system and departmental data access. Some AIS also has security resets to users so their access isn’t compromised. This eliminates risk associated with internal data abuse and unauthorized department access. AIS have virus, disaster recovery and system updates. A virus will be a disaster for AIS. Whether internal or external, a threat can destroy a system data. Information security has keep accounting systems protected from

However, anti-malware detection products are available to detect and prevent attacks. These products can better ensure protection on computers. Group three believes that training employees to be aware of security issues in companies, along with different type’s attacks can prevent employees from clicking on suspicious emails, links, and downloads. It also gives the companies systems’ a better chance of not being compromised. Group three predicts that the amount of attacks similar to the Sony data breach will increase as technology advances along with news ways to compromise systems. Collectively, group three believes there is not true solution to this type of attack. In the future group three believes that for a company to be truly safe, the network has to be completely secure, servers and connections have to be checked and updated regularly, and employees must be aware of the attacks that hackers will try to do to infect a network

As long as this world have businesses and buying and selling within company to company accounting and Accounting Information Systems (AIS) will play a big role in financial management and decision making. The degree of value and how usable an AIS is depending on if the system is custom, outsourced or boxed. In this paper I will talk about just that. You will find out if the company should keep, change, modify or outsource and what will be the advantages and disadvantages of doing so. Analyze the need for changing to a new system and the potential benefits and risks associated with this. Identify three (3) advantages

Information Technology (IT) managers are constantly tasked with evaluating their organization’s overall security posture and reporting the greatest vulnerabilities to leadership. Senior management is often surprised to hear that the greatest vulnerability within an organization is not a misconfigured firewall or a virus being forwarded across an internal e-mail server, but rather a human being. When compared to a piece of hardware or software, a human user is easily the single most targeted weakness within an organization.

An Accounting Information System (AIS) is a system that collects, records, stores, and processes data to produce information for decision makers. (Hoggett J., 2012) Accounting software began with programs written to automate common, repetitive bookkeeping transactions for businesses but now over the time it have become increasingly sophisticated and customized for specific industries especially for construction companies. (Bagranoff, 2008) Enterprise-wide software is incredibly powerful, complex, and is capable of collecting a wide variety of data to support business decisions. It is the core of business information systems. Accounting Information System increases the financial performance, productivity, efficiency, synchronize workflow and also improves forecasting & decision making. (Bhattacharya, 2008)

External hacks can cause a business or government millions of dollars as well as the loss of vast amounts of personal data. What is not as prevalent in the news is how these internal hackers often use an insider’s credentials to gain access to a computer network. Equally as troubling is there are businesses that disregard the likelihood of a hacker coming from within their own organization. Cybersecurity should begin internally, however, as in the case of AT&T, “one of world 's largest communications companies” (AT&T Company Information - Key Facts, n.d.), human beings tend to be the greatest security vulnerability to the public and private industry.

There exists a perpetual need for businesses to have a reliable and accurate accounting system irrespective of the nature of business whether it is manufacturing concern or an organization belonging to a service industry. An accounting information system is not optional but mandatory. To understand why an AIS (accounting information system) is so vital for an organization, it is necessary to first have a comprehension of what actually an accounting information system is.

The human dependence on technology has been increasing rapidly because humans are trying to incorporate technology in every aspect of life. The increasing dependence on technology in today’s world has led to an increased level of vulnerability of the private information of the people. Most of the technology being used today is open to attack and can be hacked. According to CFO Magazine Global Business Outlook Survey, 80 percent of the U.S. companies have been hacked successfully [PHYS ORG, website]. Thus, cyber-security is a major concern in today’s world. One of the major causes of vulnerabilities found in cyber-security is the acts done by people either performed deliberately or accidentally.

Most people think that the threat of security attack is only come from outside the company. In fact, the attack from inside the company network is more harmful with high frequency to be happened. As written by Cryptek (2001), which based the argument from some articles, that

According to author Ulric J. Gelinas in his book “Accounting Information Systems 10th edition “Accounting Information Systems can be defined as “the collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources.” (Accounting Information Systems, 2014)

While many organizations focus their security efforts on their network border, it is the insider that perhaps poses the most risk to cyber-security. An Insider threat is a malicious threat to an organization that comes from people within the organization, such as employees, former employees, contractors or business associates, who have inside information concerning the organization 's security practices, data and computer systems. The threat may involve fraud, the theft of confidential or commercially valuable information, the theft of intellectual property, or the sabotage of computer systems. From executives, to IT administrators to partners, many people have access to sensitive data that if publicly exposed, could have

Information is the backbone of every organization and the need to aptly manage and control the security of information is necessary for its sustainability (Kerry-Lynn & Rossouw, 2004). Few employees have elevated rights on organization provided work PCs, which allow them to install or modify applications without consent. Such actions which are against the organization’s information security policies may lead to information security breach. Typically, the employee thinks they are insusceptible to security attacks and an awareness is needed to prevent it.

Cloud accounting information systems involve the basic functionality of input, storage, processing and output. The applications are hosted by a service provider giving the customer ease of access and use anywhere using any device. This functionality is similar to the traditional inhouse accounting systems which are installed on the computer. Cloud Accounting information systems are accessed via a web based platform such as the internet. There are inherent risks and benefits associated with use of such as system as with any system.

Managerial decision making normally relies upon an effective information system. At present many firms are using accounting software to prepare accounting reports very quick, perfectly and in right time. Accounting Information Systems are most common information systems utilized in business, while it was previously paper-based process;