Controls for Information Technology and Reporting Evaluation Essay

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Controls for Information Technology and Reporting Evaluation Week 6 Controls for Information Technology Risk is a necessary undertaking for any business. Success in business is determined by effectively managing the risk. Effective risk management helps to protect the company from losses because of poor accounting practices and fraud. Good controls also protect company management from the liability when they certify the financial statements issued in the annual report because they are also certifying the internal controls. The internal control process begins with management and the attitude that management portrays through the company. From this attitude, management gives direction, and the direction becomes policies and…show more content…
The ability to install applications and modify system configuration is something that should be restricted to protect lay users from inadvertently exposing the system to a control risk by modifying or installing an application, or making a system change that should not be done. The applications themselves present another vulnerability for business. Microsoft Excel and Microsoft Access are very convenient applications for data storage. These applications allow individual users the ability to generate powerful applications that are not in the direct control of the information technologies group. These applications can house critical business data in a format that is outside of the control of the company. The users of an automated information system represent the most significant vulnerability to the system. If the programmer is successful in developing air free code, it will do little good if the user enters inaccurate information. If a company develops sound policies and procedures for the operation of an accounting information system, they will be of little benefit if the policies and procedures are not implemented and followed. The user of an automated information system is both the largest beneficiary of the results of the system and also the most likely component of the system to compromise the
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