CEO & CFO Perceptions About AIS Impact on Firm Performance & FInancial Reporting

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CEO and CFO perceptions about AIS impact on firm performance and financial reporting: How do SOX, COSO, and the implementation of IT help reduce fraud and increase productivity in a business? In the multifaceted, dynamic, corporate global milieu, imminent rifts continue to rattle the arenas of accounting/finance. The personal ambitions of CEO’s and CFO’s outweighed their responsibilities toward shareholders, employees, operations, civic/ethical duties, and the general financial system. CEO’s primarily focused on their own profitability, by increasing margins, meeting shareholder/market expectations, and expanding by any means necessary. Therefore, this lead to CFO’s and other members of top management on the front lines in manipulating…show more content…
Subcategories of application controls include input controls, processing controls, and output controls. The General controls include controls over IT governance, infrastructure, network & operating system security, database access, application acquisitions & development, and program changes. “General controls are needed to support the environment in which application controls function, and both are needed to ensure accurate financial reporting, as well as reduce instances of fraudulent activity.” (Hall 2013)
While utilizing the aforementioned controls will greatly reduce risk of financial fraud, there are inherent risks concerning information technology systems. Organizations integrated in a global frame, face an overarching environmental risk involving stability, which primarily concerns IT. The rapid production and ingenuity of increasing computing power, coupled with consistent gains in the growth of technology, have a direct result in an exponentially vibrant information technology atmosphere. This dynamic environment causes constant changes within internal controls in companies. Currently, “IT is considered one of the main risk factors in organizations, and both lack and excess of such investments can compromise the structure and the operations of the firm.” (Lunardi, Becker, Macada, & Dolci 2010)
To keep up with the forward thinking global environment, as well as complying with

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