Account Information Systems Boston Pearson â€Myassignmenthelp.Com

Question: Discuss About The Account Information Systems Boston Pearson? Answer: Introducation When the Activities like Sales made by the company, inventory, working capital to finance daily operations, trade receivables completed in a period it is called as Revenue Cycle. Revenue cycle starts from considering the need of customers and making products according to them and sells those products in the form of cash or credit and records these transactions in the books of accounts (Romney Steinbart, 2012). (i) Motherboards and More Pty ltd suffering from various Deficiencies in internal control system and the some of the deficiencies are listed below: Inadequate Risk Assessment Procedures: Procedures made for assessing the risk is inadequate and the management failed to identify the risks which affects the daily operations of the company. Failed to Identify the Collusion among the Employees: Internal controls of the company are completely failed in identifying the conspiracy between the employees and the members of staff (Marinovic, 2013). Key Business Cycles not properly Defined: Managers and Owners failed in making the effective policies and procedures and the policies is not defined in written and various important cycles are not made by the company which affects the operations of the company. (ii) Impact of internal control weaknesses on the organizations: Internal Controls are the process derived by the management to provide a reasonable assurance that the daily operations of the company is achieved with the efficiency and effectiveness and complies with the provisions of law and follow necessary regulations. If the internal controls of the company are very weak then it will fall out in the near future (Badara Saidin, 2013). Weakness in the internal controls made companies vulnerable to the risk. Some of the risks are making unauthorized accounting and taxable transactions, manipulation of financial and accounting records and inconsistent applications of accounting policies. Weakness in the internal control system leads to conflict of interest between the employees and management and the possible risks affect the productivity of the company and interest of the users of financial statement will not be protected. (iii) Specific Internal Controls implemented to mitigate the risk in the organizations: Increase Oversight: Various Monitoring devices will be installed in the entire organization to find any suspicious activity and it will be removed by using various devices like camera installed in the place of work. Give Incentive to those who report for Suspicious Activity: If any employee or member of staff reports for any suspicious activity and the information provided by him leads to any fraud then he will be rewarded with a incentive. This will encourage other employees and the chances of fraud in the company will decrease. Educate Employees by providing Required Training: A complete training related to the operations of the company will be provided to the employees which will prevent the employees to making any unintentional errors (Vijayakumar Nagaraja, 2012). Financial Data Checked by the Third Party: financial data prepared by the company will be checked by the third party like an audit team who will give his opinion and report the necessary matters in his audit report. Conduct Detailed Risk Assessment: The management of the company and those charged with governance should make a complete analysis of the risk and make procedures to reduce the extent of the risk. A detailed risk assessment should made by the company to mitigate the risk. Protect Petty Cash funds and other cash funds: Mainly defaults and frauds will come into the cash account the management of the company made a detailed procedure to protect the cash funds and the cash fund should be reconcile at the end of every week if possible. Avoid Related Party Transactions: Related party transactions should be avoided by the management of the company to protect the conflict of interest between the top management (Reginato, et.al., 2011). These changes in internal controls should help the company in minimizing their risk and increase the productivity of the organization. The famous Attack which affects the data of million computers was happened in May 2017 which is known as WannaCry Ransomware attack. It is a cryptoworm made to affects the workings of the computers and it enters into the computer through the same network and encrypt the important files in the computer and demand a ransom number of payment in exchange of decrypting these files. It first affects the computers which is operated on Microsoft windows and not updated and do not have a security patch. Bitcoin is the currency in which they demand payment for decrypting the files (Hathaway, et. al., 2012). More than 1millions companies are affected from this attack across all over the world. In the modern period the number of cyber-attacks has rapidly increased and to prevent the company from these attacks various controls should be implemented by the management of Motherboards and More Pty ltd and these are listed below: Dont click on email links and attachments: when the warning is given to not to click on the email links and attachments which harms the data of the company then it should be avoided by the employees and management of the company. Use a hardware based firewall: All the computers of the company should use hardware based firewall which will mitigate the threats posed by the company. Disable Autorun: when any devices attached in the system it runs automatically and sometimes worms comes through when any devices attached in the system. Management of the company should disable the function of Autorun which should decrease the possibility of cyber-attack. Install Antiviruses in all the system of the company: Various security applications available on the internet. Company has to purchase one of these antiviruses to protect the data of the company. Some of the best software available in the market are Norton360, Quickheal total security, Kaspersky,etc. Data Backups should be made at regular intervals: Backup of the financial data of the company should be made at regular intervals and the data backup should be store offline in case of any cyber-attack (Kotenko and Chechulin, 2013). Authentication reduces to less number of peoples: Authentication to financial data of the company should remain to the less number of people so the important information about the company should not spread everywhere. References Badara, M. A. S., Saidin, S. Z. (2013). Impact of the effective internal control system on the internal audit effectiveness at local government level. Journal of Social and Development Sciences, 4(1), 16-23. Hathaway, O. A., Crootof, R., Levitz, P., Nix, H., Nowlan, A., Perdue, W., Spiegel, J. (2012). The law of cyber-attack. California Law Review, 817-885. Kotenko, I. and Chechulin, A., 2013, June. A cyber attack modeling and impact assessment framework. In Cyber Conflict (CyCon), 2013 5th International Conference on (pp. 1-24). IEEE. Marinovic, I. (2013). Internal control system, earnings quality, and the dynamics of financial reporting. The RAND Journal of Economics, 44(1), 145-167. Reginato, E., Paglietti, P., Fadda, I. (2011). Formal or substantial innovation: enquiring the internal control system reform in the italian local government. International Journal of Business and Management, 6(6), 3. Romney, M. B., Steinbart, P. J. (2012). Accounting information systems. Boston: Pearson. Vijayakumar, A. N., Nagaraja, N. (2012). Internal Control Systems: Effectiveness of Internal Audit in Risk Management at Public Sector Enterprises. BVIMR Management Edge, 5(1).