The Vulnerability Of Computerised Accounting Information Systems To Computer Crime

1916 words - 8 pages

The vulnerability of computerised accounting information systems to computer crimeAbstractWith the information technology development day-by-day, Computerised Accounting Information System (CAIS) plays an increasingly significant role in the successful operation of today's business. CAIS has been used more and more broadly and had as much impact on organisations, however the computer crime is also an important issue related to CAIS. As the expenditures of computer spending on control and securities are increasing in recently years, as well as the larger proportion of companies suffers computer related losses (Bagranoff & Moscove & Simkin 2003). Therefore, we can believe that the connection between growing dependence on information technologies and computer crime is positive correlated. The main objectives of this essay are to explain what computer crime is and look at the connections between vulnerabilities of Computerised Accounting Information System and computer crime.E-crime presents have become one of the major challenges of the future to Australasian law enforcement (Barbara 2001.p2.).Using accounting software can pose significant vulnerability to computer crime. There are several risks when using finance data files software such as authorized access to data and program, undetected changes to file and processing of unauthorized transactions by outsiders and internal employeesAn internal employee is able to deceive their employer by taking company assets (Rabinovitch 2001). For instance, A rogue trader at Société Générale, Jérôme Kerviel, began making unauthorized transactions beginning in 2005, and lapses in the internal controls allowed the trades to go undiscovered until January 2008, according to a preliminary report released(http://www.nytimes.com/2008/02/21/business/worldbusiness/21bank.html?_r=2&oref=slogin&oref=slogins 2008). In this case, in CAIS, an employee establishes fake company's accounts and has the accounts to pay for goods that are not actually delivered. The inspection is not conducted by a third party; funds from the fake companies come straight to an employee's pocket.As well as employees, management can manipulate financial statements in software to gain a bonus or to gain interest. The company consists of an automated payroll system. The payroll system could be venerable to fraud if adequate internal controls are not implemented (Craig, S.H. 1995). For example, if an employee leaves the company, the payroll officer is able to delay the termination order and changes the mailing address. A payroll officer also has the opportunity to input fake names into the system without independent confirmation.CAIS such as MYOB has an automated bank reconciliation system. It is vulnerable to fraud as it involves reconciling cash resources. Reconciliation should be conducted by separate employees to prevent fraud as it opens the door for covering up discrepancies...

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