Accounting Information System - Essay Example

Some of the main benefits of using accounting information systems to manage financial information include quick collection of information, accurate analysis of information, consistency of records, completeness of information, and error-free processing of information. Along with these significant benefits of using accounting information systems, there also exist some concerns regarding privacy of information stored in the systems. In this report, we will identify all suspected frauds and computer crimes that can make the use of accounting information systems risky for companies.

The report will also include a discussion about the steps that companies can take to make their accounting systems safe and risk-free. Frauds and computer cries have been the major concerns for computer users since the rise of computer technology. Although computer systems have facilitated people in many different ways, such as, ease in storing information, ease in doing calculations, and ease in making reports, but privacy has been the major concern regarding use of computer systems for managing important information.

In case of accounting information systems, the concern for privacy even becomes more significant. Companies making use of accounting information systems also face a number of privacy issues. Some of those issues include hacking of private financial information, misuse of financial information by the users of the system, and showing altered financial statements to hide personal performance. One of the main computer crimes that can occur with accounting information systems can be alteration of original financial information by the users of the system.

“Employees can gather information for personal use or manipulate information to make financial documents appear better than the actual results” (Vitez n.d., p. 1). Employees dealing the information system of accounts department can make the illegal use of it