Accounting Info Systems W/lab

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because they did not take precaution to the threat before and after. By being, negligent to the threat the company is facing breach of security, and maybe this is because management did not want to spend the money to develop an effective strategy to safeguard the company AIS. This is why they should be accountable for company losses.

On the other hand, if companies adequately protected their data, then they should not be held liable for losses sustained to outside attacks on the accounting information system. The reason is that they choose to comply with the appropriate laws and regulations to safeguard their company from threats. They take internal and external threats seriously by educating employees about control measure, establishing policy security, creating strategies and objective and implementing them into their application development process, and backing up sensitive data to a safer location. To avoid undue risk, risk appetite must be in alignment with company strategy (Romney 189). These companies are not at fault because they are committed to integrity, values, ethic, and competence. Because they believe in those four words, their business is in good standards with the public. Integrity starts at the top, as company employees adopt top management attitudes about risks and controls (Romney 189).

To conclude, accounting information system has come a long way from manual to computerized systems. Therefore, companies that do not protect their company should be held liable for losses sustained in a successful attack made on their accounting information system from outside sources. Because they did not follow the proper regulations to safeguard, their company the company ended up losing thousands of dollars. However, if they adequately protect their company from threats they should not be held liable because they have taken the essential protections against threats. Accounting information systems should be reliable to help accomplish a specific organizational goal to make effective decisions.

References

Fontinelle, A. (2015). Introduction To Accounting Information Systems . Retrieved from Investopedia: http://www.investopedia.com/articles/professionaleducation/11/accounting-information-systems.asp

Romney, Marshall B., Paul Steinbart. Accounting Information Systems, 12th Edition. Pearson Learning Solutions. VitalBook file.