Reducing the Threat Levels for Accounting Information Systems - Article Example

Article Critique: Reducing the Threat Levels for Accounting Information Systems Submitted by: XXXXXXX Number: XXXXXXX XXXXXXX Subject: XXXXXXX Subject Code: XXXXXXX University of XXXXXXX Date of Submission: XX – XX – 2010 Number of Words: 1731 (Excluding Bibliography) Introduction: Use of Accounting Information systems has been vast over the years. These systems generally use a combination of the basic knowledge of accounting with the design, implementation and mentoring of the information systems. This paper aims at analyzing and critiquing an article from The CPA Journal. Details of the articles are as follows: Article Name: Reducing the Threat Levels for Accounting Information Systems. Authors Name: Beard, Deborah & Wen, H. Joseph Source: CPA Journal; May2007, Vol. 77 Issue 5, p34-42, 7p The paper will firstly provide a brief overview of the article following which the findings of the article and limitations of the findings will be discussed. A thorough analysis of the article has been made in the following sections. This paper aims at discussing the article and to find the issues and possible loop holes of the paper. The main reason this article has been chosen is that it deals with the security threats of eCommerce as well as the various threats to the accounting information systems. The authors have also discussed the implications to the management as well. This article is appropriate in the current times, where almost every business has launched an eCommerce website and the numbers of businesses online are constantly increasing every minute, this article is helpful in bringing out the threats being faced and the repercussions that these threats have on the management helps the businesses focus on the factors that need to be taken into account. Hence this article is very relevant in the current times and to a great extent provides the readers with a clear and well explained list of implications on various parties including, management, accountants and auditors, and academics. The article is also very insightful as it provides a clear explanation of the need for security which can be easily overlooked in the current times. On the whole, the article provides a great insight into the security issues that relate to accounting information systems and excellent ways to reduce the threat levels of these systems. The article is very effective with a detailed explanation of the various aspects and views for different audiences. Brief Overview of Article: The article by Beard and Wen has touched upon a few essential aspects of accounting Information systems. The authors have discussed a wide range of issues that are being faced by companies across the world. An excellent point that the authors have included in the paper is the issues that are being faced due to the wide expansion of the internet and the newer opportunities that are being opened up for almost every business and the easy accessibility to break down all barriers of trade and all the physical barriers. The article has a major focus on the various elements including the security measures and the issues of the security measures in terms of the accounting information systems. The authors have very effectively also explained the implications of the issues on various parties like the management. The authors explain here that with the possible growing issues in terms of the security of the accounting information systems, there is clearly a major impact on the management who are responsible to ensure that all documentation is in place and all the financial information and statements of the company are in accordance with the GAAP. The authors have also very effectively explained the implications that the security issues have on the accountants and the auditors. The authors bring out excellent point which explains that the auditors and the accountants are the major users of the systems and hence they need to understand the systems and also identify the threats well. The article also includes in detail the guarded security alert levels, for both codes blue as well as code red. These clearly explain the issues that fall into each category, and present to the readers a clear discrimination among the two and the levels of security that each of them relate to. The article has detailed a number of aspects like understanding the need for security and steps that companies require to undertake. This however is a brief overview with basic details included in the same. Discussion of Findings and the Limitations: The article explains how the auditors play an important role and why it is essential for the accountants and auditors to also have a fair knowledge of the systems. The article reads, “Although SOX prohibits auditors from offering information system design and implementation services to audit clients. SOX mandates that every independent audit report include an auditor attestation report relating to the internal control assessments made by management. Specific notation of any significant defects or material noncompliance must be included in that report” (Beard & Wen, 2007). The authors have also provides a detailed explanation of how the issues have an impact on the academics and the authors have very effectively explained how the IT Security systems are important. The authors explain, “… the need for IT security and the importance of working with others to develop policies, processes, and technology to address the threats…” (Beard & Wen, 2007). The authors also very clearly explain, “Do future accounting professionals have the opportunity to learn about information security, assurance and compliance applications, business continuity planning, IT governance, privacy management, digital identity and authentication technologies, application and data integration, new wireless and paperless technologies, and spyware detection and removal?” (Beard & Wen, 2007). Overall the article provides a clear explanation for the management, accountants, auditors, and the academics. The article has very effectively explained the impact of the threats and issues on the accounting information systems. There is a clear link and explanation of the impact that the threats have on various parties like the management, accountants, auditors, and also the educators and academics. The article is very important as it builds a strong connection with the threats, and issues as well as the various security alert coding. The article is very helpful and informative for businesses as it provides a clear explanation of not only the issues and threats but also deals with some essential aspects of the business and laws relating the business like The Foreign Corrupt Practices Act of 1977 and the Sarbanes – Oxley Act of 2002. The article also provides a clear link to the various duties of the parties in business. Another very beneficial aspect of this research article is that it focuses on the need for a safe and secure accounting information system. As explained by the authors, “Safeguarding personal and proprietary information and ensuring the integrity of the components of the accounting information system in today’s digital environment present many challenges” (Beard & Wen, 2007). One of the biggest limitation of the paper is the over indulgence with the laws and the duties of the various parties like the management, auditors and accountants. Although the information for each of these is very helpful, there is a lot of importance that has been placed on the duties of the three parties rather than a more focused and detailed analysis of the issues that these parties face. The paper does provide a detailed explanation of the Statements on Auditing Standards (SAS), and other similar details which are quite useful and insightful, however in terms of the topic of the research, i.e. reducing the Threat Levels for Accounting Information Systems, the paper could have detailed and focused on techniques that can be adopted to reduce the threat levels. An excellent explanation however is that of the severity coding of the Department of Homeland Security. This provides the readers with a base and clear explanation of how with the blessing of technology, there have also been a number of misuses as well like the cases of Enron, Arthur Andersen, WorldCom and Tyco (Beard & Wen, 2007). Conclusions: Technology has become a very important part of everyone’s life and now a switch of a button can do almost anything. Technological developments have however caused a number of problems for the society as well. With the increase of technological benefits, there has also been a lot of misuse of the technology. The risks involved are numerous and it is in the hands of individuals to ensure their data is well protected. Despite the technological growth and advancement banks and other institutions are trying their best to ensure complete safety against identity theft. It is important that each one of us understands the seriousness of this crime and ensures our safety. Together with them and the government and a little diligence from the customers end, it would be quite possible to completely remove this crime from society. The basic overall conclusions that the authors have provided have proved to be very effective in the current times. Businesses have adopted the various recommendations and almost every company focuses on the security measures like the email password protection and need for authorized access and authentication. On the whole, the conclusions provided by the authors are completely compliant with the current events and the current circumstances for most organizations. In conclusion, it is also essential to note that the paper does provide a clear analysis of the issues and the possible solutions for the issues. However for development of a paper for this topic, it would also be very effective to consider aspects like the issues that have been caused by the increased use of the internet and the online medium as a whole. The paper could have been more focused on issues that are faced by the management and steps to resolve the issue rather than only focusing more on the duties of the three parties. In conclusion, the explanation and solution that the authors have included are completely compliant with the current conditions and there is a clear focus by the authors, “Identifying, implementing, and monitoring some basic system requirements and sustainable solutions for both the general and unique security challenges that can arise in an unbounded electronic enterprise with a technologically rich environment should be undertaken” (Beard & Wen, 2007). This has been one of the major steps taken by a number of companies and this clearly brings out the validity and reliability of the article. On the whole the article has touched upon a number of current issues and has also concentrated on the solutions similar to those that are being presently adopted by companies not only in the US but across all locations. Bibliography Beard, D., & Wen, H. J. (2007). Reducing the Threat Levels for Accounting Information Systems. The CPA Journal , 34 - 42. Read More