The Threats to an Accounting Information System
I. Introduction The report provides basic knowledge about “safeguarding assets” and explain in what way MYOB can help Mark firm achieves the term. Following that the report will address internal & external threats associated with a small business for Mark – owner of Dive for Fun Pty Ltd – as well as giving suggested solutions for each threat. Moreover, recommendations will be made and thoroughly explained for Mark to prevent threats based on the firm current capacity.
II. What is “Safeguarding assets” means & how to achieve it with MYOB? Barron 's Educational Series, Inc. (Eds 2005) defined the term “safeguarding assets” as follow:
“Protecting the firm 's assets through a good internal control system. The objective is to guard against loss of assets because of theft, accidental destruction, and errors.
Assurance must exist that transactions related to assets have been properly processed and that appropriate physical handling and control over assets exist.” MYOB is a computerised accounting system in which it provides users with an exclusive modern integrated accounting package for relevant tasks of an accountant such as bookkeeping, preparing financial statements, etc. (Neish & Kahwati 2011).
Therefore, it is a great tool to secure the firm’s assets as it designed with protective passwords, managers or owners can set the specified limitation for all employees so that internal controls can be improved and hardly ever breached. MYOB alerts users with notifications and can block unauthorised or false actions caused by the users. It’s not only prevent fake entries by providing linked accounts, showing historical transactions, opening, closing & current balances but also back up all the data in case there are any unexpected destructions.
III. Internal threats
Internal threats are often come from people within the organisation such as employees, managers and in some certain cases, even the owners. The reasons for these people to jeopardize their
II. What is “Safeguarding assets” means & how to achieve it with MYOB? Barron 's Educational Series, Inc. (Eds 2005) defined the term “safeguarding assets” as follow:
“Protecting the firm 's assets through a good internal control system. The objective is to guard against loss of assets because of theft, accidental destruction, and errors.
Assurance must exist that transactions related to assets have been properly processed and that appropriate physical handling and control over assets exist.” MYOB is a computerised accounting system in which it provides users with an exclusive modern integrated accounting package for relevant tasks of an accountant such as bookkeeping, preparing financial statements, etc. (Neish & Kahwati 2011).
Therefore, it is a great tool to secure the firm’s assets as it designed with protective passwords, managers or owners can set the specified limitation for all employees so that internal controls can be improved and hardly ever breached. MYOB alerts users with notifications and can block unauthorised or false actions caused by the users. It’s not only prevent fake entries by providing linked accounts, showing historical transactions, opening, closing & current balances but also back up all the data in case there are any unexpected destructions.
III. Internal threats
Internal threats are often come from people within the organisation such as employees, managers and in some certain cases, even the owners. The reasons for these people to jeopardize their
References: Barron 's Educational Series, Inc. (eds) 2005, Dictionary of Accounting Terms, viewed 15th April 2013, Cisco System Inc. 2006, Top Five Security Issues for Small and Medium-Sized Businesses, Cisco System Inc., viewed 15th April 2013, ‘Guarding against external threats of fraud to your business’ 2012, Bizfilings, 24th May, viewed 15th April 2013, Janssen, C (eds) 2013, Technology Terms, viewed 15th April 2013, Neish, WJ & Kahwati, G 2011, Computer Accounting Using MYOB Business Software, 13th edn, McGrawHill, Australia Whittle, S 2008, ‘The top five internal security threats’, zdnet, CBS Interactive, 10th March, viewed 15th April 2013, < http://www.zdnet.com/the-top-five-internal-security-threats-3039363097/> Winmark Corporation 2013, ‘Internal Threats -- Employee (Occupational) Frauds’, Amazon.com, viewed 15th April 2013, < http://www.wbsonline.com/resources/internal-threats-employee-occupational-frauds/>