Mrs Moji

Discuss the risks related to internal control in a higher automated work environment.

It is important to make internal control work in higher automated work environment. It all boil down to protecting the business from internal and external financial loss, The key to good internal control, is good monitoring system and make every employee accountable for there work I mean the ability to check the footprint left by each employee? In United state every company have common guidance on the structure of internal control systems. The risk involved in automated work environment is very high? They must putting an effective control environment in place is and it not a simple task. The company must have the follow structure in place? The Company needs to have the ability to document and monitors business processes that cross multiple enterprise divisions and regions, span entire business processes and monitor multiple, often disconnected information technology.

The base set up involves and include a plan to have a good internal control in the following aspect.

 Safeguard its assets

 Check the accuracy and reliability of its accounting data

 Promote operational efficiency

 Encourage adherence to policies for accounting and financial controls

1. The risk involve include, data mismanagement, input error, internal and external fraud.

2. Unauthorized access is another major risk in a higher automated work environment.

3. For example. You have to log out of the system properly. I noticed at my workplace, by exiting the system without clicking the log out function bottom does not mean I am logout of the system completely. When someone attempt to log in, it will take them back to the last person who logged in and you can get into there information.

4. There is also the risk of employer stealing information for there own personal use and gain.

5. There is also the risk of computer hackers?

6. The risk of infecting the system with virus...