Risks and Controls in Computer-Based Accounting Information Systems

Question 1

Do automated systems increase or decrease the potential for data analytics compared with manual accounting systems?

Answer 1

Increase since they are designed to include data and text analytic subsystems (e.g., expert systems, DSS, executive support systems).

Question 2

List six risks that are greater in an automated than in manual systems.

Answer 2

Reliance on faulty programs, unauthorized access, unauthorized changes, failure to update systems, inappropriate manual intervention, data loss.

Question 3

How does segregation of duties differ in an automated, compared to a manual, accounting system?

Answer 3

Segregated functions are often combined in automated systems, with automated processes then used as a compensating control.

Question 4

How does the audit trail differ in an automated, compared to a manual, accounting system?

Answer 4

In automated systems, audit trails are often in imaged or other electronic forms. In manual systems, they were paper.