CHAPTER 30

Systems Controls and Security

Measures in an Accounting
Information System
 Without proper safeguards the use of computers
may have negative results such as inconveniences
due to incorrect processing of bills, lost money
through computer fraud
 Controls for Computerized
Accounting Information System
Controls refer to measures and techniques that
prevent, detect and/or correct condition that may
lead to loss or damage to the business firm.

Some of the reasons why computer can cause

control problems are:
1. Effects or error may be magnified
2. Inadequate separation of duties
3. Audit trails may be undermined
4. Human judgement is bypassed
5. Changes to data program may be made by
individuals lacking knowledge
6. More individyals may have access to accounting
data.
Computer controls can be classified as

 General Controls
 Application Controls
GENERAL CONTROLS
These controls provide reasonable assurance that
development of, and changes to computer programs
are authorized, tested or approved prior to their
usage.
1. Organizational or Personal Controls
a.) This will involved separation of incompatible duties at a
minimum, segregate programming operations and the library
functions within the information system department.

 Systems Analysis
 Systems Programming
 Applications Programming
 Database Administration
 Data preparation
 Operations
 Data library
 Data controls
ideally, in a large system, all of the above key functions
should be segregated; in a small computer environment,
manybof the key functions are concentrated in a small
b.) companies may use separate
computer accounts that are assigned to
users on either a group or individual
bases. This will also involves the use of
PASSWORDS and CALL-BACK
procedures to restrict access from
remote terminal.