computerising accounting information systems (AIS) and telecommunicating accounting information over the web enhances the accounting functions in business organisations operating globally.
It is often claimed that the process of computerising accounting information systems (AIS) and telecommunicating accounting information over the web enhances the accounting functions in business organisations operating globally. Yet, the counter-claim is that the breaching of the security of such systems will be a great risk that needs to be properly managed in various ways.
An accounting information system (AIS) is “ a collection of resources, such as people and equipment, designed to transform financial and other data into information.” (Khaled Abdala, 2012, p391). AIS systems are used across all the functions of accounting such as, recording, classifying, summarising, analysis and communication. It is argued by many that AIS enhances the functions of accounting.
In terms of recording this can definitely be seen as the case. Recording accounts entails taking notes of every incoming or outgoing to the business. This means keeping a log in a journal, until the introduction of computer-based systems such as Pulse or Sage software, the journal was hand written. Software such as these however enables an accountant to keep track of all purchases and revenues without this paperwork. This can be seen as “enhancing the recording function as it reduces paperwork and as a result saves time.” (D.Beard & H.J Wen, 2007, p34). As recording only entails recording entries in an orderly manner, I believe this does not encounter such a large security threat as other functions. However, if somebody did wish to gain access to software such as Pulse or Sage, they would only have to get past one password and username combination. This does not make the system very secure, it could be hacked easily by a computer expert. This is a key problem across many accounting systems but can be fixed by increasing the amount of security on the software. This could be by asking for more information to gain access to the system.
Another security threat that is common amongst AIS systems is
An accounting information system (AIS) is “ a collection of resources, such as people and equipment, designed to transform financial and other data into information.” (Khaled Abdala, 2012, p391). AIS systems are used across all the functions of accounting such as, recording, classifying, summarising, analysis and communication. It is argued by many that AIS enhances the functions of accounting.
In terms of recording this can definitely be seen as the case. Recording accounts entails taking notes of every incoming or outgoing to the business. This means keeping a log in a journal, until the introduction of computer-based systems such as Pulse or Sage software, the journal was hand written. Software such as these however enables an accountant to keep track of all purchases and revenues without this paperwork. This can be seen as “enhancing the recording function as it reduces paperwork and as a result saves time.” (D.Beard & H.J Wen, 2007, p34). As recording only entails recording entries in an orderly manner, I believe this does not encounter such a large security threat as other functions. However, if somebody did wish to gain access to software such as Pulse or Sage, they would only have to get past one password and username combination. This does not make the system very secure, it could be hacked easily by a computer expert. This is a key problem across many accounting systems but can be fixed by increasing the amount of security on the software. This could be by asking for more information to gain access to the system.
Another security threat that is common amongst AIS systems is
Bibliography: Pearson, Financial Accounting & Information Technology, Compiled by Khaled Abdala, 2012. The CPA Journal, Deborah Beard & H. Joseph Wen, 2007. http://quizlet.com/5955831/ais-computer-fraud-and-abuse-techniques-flash-cards/ maecortes on June 28, 2011 http://www.financialforce.com/resources/research/online-accounting/benefits-of-cloud-accounting/ http://www.ehow.com/how_8638439_use-access-accounting.html Bonnie Conrad, 2012. Review of Social, Economic & Business Studies, Vol.2, 45-64. Ilhan Dalchi & Veyis Naki Tanis, 2011.