Computer-Based Information Systems Controls. Learning Objectives. Describe the threats to an AIS and discuss why these threats are growing. Explain the basic concepts of control as applied to business organizations.
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Anup Kumar Saha
Jason’s frustrations, continued
Describe the threats to an AIS and discuss why these threats are growing.
Explain the basic concepts of control as applied to business organizations.
What is the traditional definition of internal control?
Internal control is the plan of organization and the methods a business uses to safeguard assets, provide accurate and reliable information, promote and improve operational efficiency, and encourage adherence to prescribed managerial policies.
Describe the major elements in the control environment of a business organization.
Describe control policies and procedures commonly used in business organizations.
Receiving checks in mail
Preparing source documents
Preparing performance reportsSegregation of Duties
Segregation of duties prevents an employee from falsifying records to cover up an inaccurate or false transaction that was inappropriately authorized.
Independent checks ensure that transactions are processed accurately are another important control element.
Evaluate a system of internal accounting control, identify its deficiencies, and prescribe modifications to remedy those deficiencies.
Some threats pose a greater risk because the probability of their occurrence is more likely. For example:
Conduct a cost-benefit analysis for particular threats, exposures, risks, and controls.
Expected loss = risk × exposure