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The vulnerability of computerised accounting information systems to computer crime.

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  • September 8, 2005
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Abstract.

The objective of this essay is to determine the vulnerability of computerised accounting information system to computer crime and the solutions to prevent such crime from occurring in organisations. Ever-Changing information technology has made computerised accounting processes easier. However, it has also created significant threats in relation to ensuring the security and reliability of computerised accounting information systems. Using an accounting software package such as MYOB can be vulnerable to frauds if internal controls are not implemented correctly. Fraudulent activities such as unauthorised use of data, theft of inventory, theft of funds and incorrect financial reporting can be conducted by internal employees of an organisation. Furthermore, outsiders are also able to access unauthorized information through electronic exchange of data if proper controls are not installed. Controls such as password, authorities, firewall, encryption, segregation of duties, and auditing, physical controls over assets contribute to reducing crimes conducted by both internal employees and outsiders.

The rapid change in information technology and the implementation of user friendly computer systems have enabled processing accounting tasks much faster and accurate than ever before. However, this state-of-the art technology has also created significant threats in relation to ensuring the security and reliability of computerised accounting information systems. In addition, other factors can contribute to the vulnerability of computerised accounting information systems to computer crime including inadequate control practices and violation of internal controls (Albrecht, 2003, p471). Many companies and organisations should be aware of potential security threats to their computerised accounting information systems and must consider adequate security controls to prevent computer crimes (Ahmad, 2001 and 2003). Furthermore, the use of accounting software packages...