Outsourcing

Alphonso S Sharpe

ACC 571

Keller Graduate School of Management

Abstract

This paper is in fulfillment of ACC 571 week three assignments and is about the cooperate responsibility of companies; are they liable for lapses in security controls in the event a successful attack is made on their Accounting Information System (AIS) by outside sources or gratified for adequate security controls.

Argue for OR against the following statement:

"Companies should not be held liable for losses sustained in a successful attack made on their AIS by outside sources."

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 various reason why the above statement should not hold but I will consider the below to support my argument.

1. The AIS is a system that enhances the recording, processing, and reporting of accounting information. To ensure the reliability and accuracy of this information, businesses are required to include in their system internal Control. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records and the security of side documents.

2. There are a variety of sources that threaten accounting information systems and if they are ignored then this can destroy the relevance and reliability of the financial information. It is very important to establish security controls during the data collection process. During this process the transaction or event should be valid, complete and free from material errors.

3. Unauthorized users are those that seek assets to you data base through several means that includes piggybacking,...