Summary: Companies Should Not Be Held Liable For Losses
Companies Should not be Held Liable for Losses Sustained in a Successful Attack Made on Their AIS by Outside Sources.
ACCT451
2013
I argue against the statement" Companies should not be held liable for losses sustained in a successful attack made on their AIS by outside sources." There are several reasons for my contention. The Accounting Information Systems has been used by businesses to improve their recording, processing, and reporting of accounting information. At the same time it is the responsibility of the companies to adequately protect their information systems from outside sources. Since, the company benefits and consequently profits from the use of accounting information system, it should bear the losses that arise from attacks on the accounting information system.
The argument in favor of the contention is that the accounting information system not only processes financial transactions to provide internal reports to managers but also does external reporting to outside parties such as stockowners, government and lenders. Since, it is essential that the accounting information system should be accessed by outsiders the system is particularly vulnerable to outside attacks (1). Still the onus of the security of its accounting information system clearly lies with the company and …show more content…
These risks have to be borne by the business as a part of its normal business risks. Further it is the responsibility of the company to maintain the highest level of security for its accounting information system. The physical security should be fool proof, authentication system should be the most advanced, virus protection should be the latest, and backup should be done at a safe place outside the premises. Such measures are required to ensure that attacks on the accounting information system like identity theft and loss of irreplaceable data do not take
ACCT451
2013
I argue against the statement" Companies should not be held liable for losses sustained in a successful attack made on their AIS by outside sources." There are several reasons for my contention. The Accounting Information Systems has been used by businesses to improve their recording, processing, and reporting of accounting information. At the same time it is the responsibility of the companies to adequately protect their information systems from outside sources. Since, the company benefits and consequently profits from the use of accounting information system, it should bear the losses that arise from attacks on the accounting information system.
The argument in favor of the contention is that the accounting information system not only processes financial transactions to provide internal reports to managers but also does external reporting to outside parties such as stockowners, government and lenders. Since, it is essential that the accounting information system should be accessed by outsiders the system is particularly vulnerable to outside attacks (1). Still the onus of the security of its accounting information system clearly lies with the company and …show more content…
These risks have to be borne by the business as a part of its normal business risks. Further it is the responsibility of the company to maintain the highest level of security for its accounting information system. The physical security should be fool proof, authentication system should be the most advanced, virus protection should be the latest, and backup should be done at a safe place outside the premises. Such measures are required to ensure that attacks on the accounting information system like identity theft and loss of irreplaceable data do not take