Abstract
The concept of IT as a business enabler is enshrined in the widespread use of computerized accounting information system the world over. However, this milestone in accounting portends imminent challenges in terms of the integrity of underlying accounting transactions processed by IT equipment and facility, an important question arises: what are the likely threats to computerized accounting information systems resulting from the deployment of IT in business and how can these challenges be overcome especially in developing economies? To analyse this area of interest, Nigerian companies has been chosen as reference. An empirical study was conducted through a structured survey directed to the users of computerized accounting systems. Information was collected in order to explain the perceived threats common to CAIS's as well as determine what categories of threats were most significant. Results show that employees and outsiders constitute key threats to information assets used in computerized accounting when not controlled effectively. This suggests that management should put in place authorization procedures on a need to know basis only. Authorized users should have access to only applications and data required to perform specific tasks only. Also, there should be regular logging and monitoring of logical access to systems and data, policies and procedures on segregation of duties, access and transaction logs.
Highlights
Computerized Accounting Information Systems (CAIS) handles both financial and non-financial transactions that directly affect the processing of financial transactions
We have identified the following hypotheses in order to provide answers to the questions raised earlier: H01: there is no significant difference on the perception of respondent groups on the existence of security threats to CAIS’s in Nigerian companies
In the final analysis aimed at answering hypothesis two, Logistic regression was applied in order to analyse the influence of those factors perceived as threats on CAIS’s
Summary
Computerized Accounting Information Systems (CAIS) handles both financial and non-financial transactions that directly affect the processing of financial transactions. When changes are made to customers’ data, for instance change in of kin and/or address, these changes provide vital information for processing of future sales to such customers. The application of software to accounting has been further engendered by the growth of commercial software market which have relatively low cost as compared to customized software; emergence of industry-specific vendors who targets their software to the needs of particular types of businesses; growing demand for software by businesses; and the trend toward downsizing of organizational units and the resulting move toward distributed data processing environment, which has made commercial software options more appealing to larger organizations. Variable(s) entered on step 1: Man Made Disasters such as Fire Loss of Power, Introduction Entry of Computer Virus to the System, Suppression or Destruction of Output, Creation of Fictitious or Incorrect Output.
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