Perceived Threats of Computerized Accounting Information System and Provides Suggestions on How to Prevent the Occurrence of these Potential Dangers

Abstract

This essay briefly introduces the perceived threats of Computerized Accounting Information System and provides suggestions on how to prevent the occurrence of these potential dangers. Though the computer technology makes the accounting operation more accurate and faster, this still involves several threats in terms of the security and reliability of the accounting information. Fraudulent activities, management cheats, virus infection, costs and so forth, are all need precaution from the operation of the organization. However, proper selection of software, execution of internal control and other precaution measures may help relieve from the threats.

Introduction

With rapid development of the information technology, computerized accounting information system plays an increasingly crucial role in the operation of organization regardless large, medium or small enterprises. This can be contributed to the merits of the marriage of accounting and the computer science technology, which dramatically improve the accuracy and speed of the process of information system.

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However, along with the advantages of the computerized accounting information system, there emerge several deadly deficiencies which, if not appropriately deal with, can be greatly detrimental to the interests of the organization and, even worse, may lead to collapse of the company. This essay mainly focuses on several important aspects of the deficiency of the computerized accounting information system and then provides feasible solutions to prevent the negative influence derived from these threats.

To begin with, fraudulent activities are the most significant threat to the organization after the accounting information system has been computerized. Both internal personnel and the top management may commit fraud in different ways. For instance, the most common fraudulent activities are unauthorized access of the company accounting information system, theft of resources of the company and misrepresentation of the financial report. Though these problems have been emerged since the manual accounting information system, the new...