Objectives of AISs

The primary goals of the research study are examining the importance of the accounting information system according to the security perspectives, and the aims of the AISs is to attaining the critical objectives which are represented by the provided information of accounting which provides the several benefits to its users. By achieving all of these, the sub-objectives of this research will be completed as well at the same time. These sub-objectives are;

·         Assessing the all economic events which are taking place in the institution by using the process accounting as; data collecting, labeling, storing, summarizing and recording ion the books of accounts.  

·         To transfer the information of accounting by using the set of reports and documents for all those who require its benefits. It also includes those documents which are applying by the administration of institution for the decision making and performance evaluation.

·         The research study is conducted to attaining the internal control for the elements of the overall materials which are existed in several institutions (Al-Dalabih, 2018).

·         To evaluate the risk nature by which the security of the information system is threatening, rates of return and environment of the Electronic accounting banking

·         To assess the causes of the different risk by which the protection of the information system is treating  

·         To determine the defensive standards which are adopted by the banks for reducing the risk by which the electronic accounting information systems is threatening.

·         The principal objective of the research study is to identify the impact of the use of AISs in the financial data’s quality which is commonly applying on the services companies (Al-Dalabih, 2018).

·         The sub-objectives of the study is to measure the accounting information which can be determined as the reliable tools in the means of modern information technology.

·         The study aims to establish the modern accounting information system along with their roles for improving the uses of the accounting information  (Nnenna, 2012).

Introduction of AIS Security

The accounting information system is considered as the soft wear which is required by the business processing the financial data as collecting and storing of the data and these all used for the process of the decision making. For tracking down the activities of the accounting, it is a computer-based method in conjunction with the resources of the information technology. Generally, the accurate data for the managers provided by the accounting information system for taking the significant decisions which are required to breaking and doing their business (Accounting Edu Org, 2019).

Parts of an Accounting Information System

There are six major parts of the accounting information system security, and these are;

People: It includes all of the characters who are involved in the usage of the AISs as a business analyst, accountants, and managers.

Procedure and instruction: It include all the ways which are required to retrieving, processing, collecting and storing the data.

Data: It includes all the information which is used for the AISs

Software: It consists of the programs of the computers which is required for processing the data.

The infrastructure of information technology: All the hardware which are using to operate the AISs  

Internal Controls: It includes all of the measures which are required for protecting the data.

People

In an AISs the peoples are the users of the system. It includes all the professionals who require the needs of the AIS organization in which provides for auditors, managers, consultants, chief financial officers, and business analysis. The system of the AISs used in the different departments for working together  (Accounting Edu Org, 2019).

Procedure and Instructions

The instructions and process of the AISs are included the ways and methods which are commonly using for processing, collecting, storing and retrieving the data. Their operations can be automated and manual both. There are the primary two sources from where the data can become internal and external. The online orders of the customers are included in the external sources and employees in internal sources. For the software of the AISs, the instruction and procedure will be coded, and it also must be encrypted in the employees by providing awareness program, training, and documentation.    

Data

In the Accounting information system security, the data is always containing in the financial information which is related to the practices of the organization’s business. It also includes the data of any activity which can influence the finances of the organization which are discussing in the AIS  (Accounting Edu Org, 2019).

In an AIS the types of the data are included, and it will depend upon the business nature and consist of the following;

• inventory data
• vendor invoices
• timekeeping
• sales analysis reports
• tax information
• customer billing statements
• payroll information
• purchase requisitions general ledger
• sales orders
• check registers

Software of AIS Security

The software component of an AIS is known as programs of the computer which is required analyzing, retrieving, storing and processing the financial data of the company.  At the beginning of the computers AISs were followed the paper-based and manual system, but now the most of the companies are involved in using the software of the machine which is considered as the basis of the AIS. The small business commonly uses sage Peachtree Accounting, Intuit's Quickbooks and Microsoft's Small Business Accounting, but there are several other software which is used for this purposes. Business one ad SAP is regularly using for the small mid-sized business. These businesses are also using the Sage Group's MAS 90, Microsoft's Dynamics GP, Epicor Financial Management and MAS 200, Oracle's People soft  (Accounting Edu Org, 2019).

Information Technology Infrastructure

The infrastructure of the information security is just known as the fancy names which are used for the hardware for operating the AISs. Most of these hardware items are includes as the things which are used for the business to running its operation. It includes storage media, mobile devices, surge protectors, computers, servers, printers, backup power supply, and routers. Moreover, for the factors which are considered as the best for selecting the hardware, storage capability and it can use for the upgraded and expanded (Accounting Edu Org, 2019).

Internal Controls

The security measures are also included in the internal controls of an AIS. It also consists of the means which are used to protecting the sensitive data. It can be complicated and straightforward in the simple it requires a password, and in involved it needs biometric identification. For protecting computer access against the unauthorized, there must be AIS internal controls. It also requires for limiting the entrance of the authorized users which is containing on the few users of the company. It can also use for preventing the accesses of the illegal file which are provided by the individuals who are allowing its access for its selected parts of the system.

The importance of AIS Security

The exposure of the business which is related to not securing the ASI is considered as the crucial just due to the integrated nature of the accounting of the modern days. The beginning of the ERP (Enterprise resource planning) is regarded as a significant innovation by which the face of information system management can be developed quickly in the business. The decision makers and the business managers are always struggling for their queries of the instant accounting information for helping to making prompt as well as for the practical decision making for increasing the competition in the market.

Functions of an Accounting Information System

·         There are three essential functions of the accounting information system;

·         The first function of the AISs is used to making sure that control is in place for recording and processing data accurately.

·         The second function of the AISs is considered as to supplying useful information for taking quick decision. It includes producing the financial statement and managerial reports.

·         The third of the AISs is known as the collection of the data effectively and efficiently as well as the storage of the information which is concerned with the financial activities of the organization. It included availing data of a transaction from various source of documents. To the record, the operation in journals and then post it into the ledger.    

 Collect and Process Data

It is referred to as the phase at where the bookkeepers and accountants are collecting the data from the payrolls, receivables and cash sales. The software processes all the debits and credits by using the accounting information system for managing the database accurately.

Providing Important Reports to the Management

The reports are used by the management which is derived from the AIS, and it is used to analyzing the current operations of the company along with the financial conditions. It will be gear up for the future which is required to setting the goals and making plans.  

Accuracy and Security

By lemmatizing the number of people the security can be improved who can access the system. By using this process, it can make sure that the data will be confidential as well as data will be secured. It is more accessible to track down and the digital footprints in case of something wrong.

By using the accounting information system which is based upon the computer this is the digital world, it provides efficiency which is required for the business. The significant benefits of the AISs are it streamlines along with the reporting automation by which everything can be a few clicks away when the company head requires the financial reports from their staff.    

The confidential information is containing on the accounting information system which must be secure and safe all times. The significances of the illegal access can be overwhelmed by identifying the problem of the loss of data. It used ion this system if the accounting data will be deleted or changed and it also can create the mess in the departments of the accounting. It can cover up the question of the accuracy and reliability of the data  (Shanker, 2019).

Physical Security

The computer system of the small business must be saved against the theft and losses. The server and order must be kept at the safe place, and the elements do not be exposed by it. Generally, the equipment of the accounting is held inside the offices where all the doors are a lock to making it more secure. It is also used for limiting unauthorized access. The accounting cables which are connecting with the equipment must be safe and away from the people who are involved in destroying them and tripping on them.  

Authentication

All the systems which are using bin the organization must be login by the password which is authenticated for the users. To make sure the person is allowed to using the computer. The password doesn’t be shared with anyone, and it must be changed periodically. The setting of the systems must be according to the automatic setup of the passwords after the 90 days.

The process of the authentication is generally included providing the rights to the users. It means to give the rights only those users who have access for all information. By giving access to the individual user, the profile can be set up just for the accounts payable module although many others have access to the reports only. The risk of the misuse of the data must be lemmatized.

Accounting Information Systems Security Issues

AISs consists of the private and confidential information which can be compromised in the case of the unprotected. The illegal usage of the accounting information can be the cause of the risk losing of information, and it can create the disastrous. The input of the wrong data and misuses of the confidential information is also included in the illegal usage of the accounting information.   

Management of AIS Security

The security of the accounting information system is to include in the responsibility of the top management. It is not related to the IT problem and bookkeeping. It has made it necessary for the management of the (SOX) according to section 404 of the Sarbanes-Oxley Act for maintaining the internal controls over financial reporting. It also includes the accounting system which is used to generating the number of reports (Shanker, 2019)

Risks of AIS Security

The risk of the accounting system is considered as the real which is required to the booking the fraudulent transaction and the tape of the financial information can be stolen by someone. There are few examples of the risks which are discussed;   

·      Loss and deletion of data

·      To theft the numbers of social security from contractors and employees

·      Payments for the fake vendors

·      Backup tapes damage

·      Theft to the computer and servers (Shanker, 2019)

Security Measures

The measures of the security are commonly known as controls, and they may be defensive. It is used to detecting and preventing risks. It also includes the identification of the problems after considering the facts. For protecting the system, the controls can be set up after identification of the problem. Few of the security standards can be discussed as; (Shanker, 2019):

·         Changing the passwords frequently

·         Data encryption

·      Supervising the vendor reports review on a monthly basis

·      The computer and server environment must be safe and protected

·      off-site archiving of backup tapes must be protected and safe.

Tips to Secure Accounting System Information

There are several approaches which can be used to securing the accounting information step and it contains on the several steps these are; the first step is taken for ensuring the financial information which is related to the inventory, and it required high security along with its impacts that it have their own business when the business is penetrated.

Its depends on the criticality and sensitivity degree of the components of the AIS for meeting the noncommercial and commercial needs of the society of the business. The financial information of the inventory includes:

·         Value of information

• Location of information

·         Knowledge of the owner

·         Knowledge on the security and risk profile

Physical Approach to Securing AIS

The first warning for the information system security is the physical security of the infrastructure. If there is no form of physical security in the place, it doesn’t to expect the system would be safe. The server which is containing on the financial information there must be kept at the safe place physically along with the proper access of the control which is implemented. In the physical security of the computer infrastructure, the security camera must be used effectively.

Logical Approach to Securing AIS

The access of the remote for accounting information and business which is provided by the executives is considered as one of the highest single sources of threat for the AIS security for any business entity. The software of the protection which has the capability of intrusion prevention, firewalls, access and intrusion detection which can be organized when it is possible. It is used at the time of the evaluation of the cost-benefit analysis of the project.  (Kearns, 2014).

The significance of Securing Accounting Information System

In the era of the super highway information for the failures of the business, the businesses are going to be vulnerable which is relevant to the leakage of the news because of the compromising technology. Technology is also considered as the enabler of the business, and it is also known as the destructive tool which cannot manage properly (Accountantnext Door, 2019). There are the following things which can be ensured by the accounting database of the organization.

·         Improved profitability

·         Increased efficiency

·         The business can run smoothly

·         To make sure the continuing availability of the information of the industry

·         To make sure the information integrity which is stored in the computers.  

·         The reputation of the business can be enhanced

·          Loyalty for the regulation and privacy laws

Critical Success Factor of Accounting Information Systems Security

There are several studies which have discussed the numerous cases where the information is seen by the employees and managers for the security if the system which is known as the exclusive function of the IT department. Mostly the senior management of most companies is fail to evaluate their roles and responsibilities for promoting and establishing the structure of the sound information security management. To the most desired security of accounting information system which must be achieved and it is required to gaining the support of the top management (Al-Ibbini, 2017).

The Reliability of Accounting Information Systems

The reliability is vitally important just because of the providers and AIS stores as valuable business information. For the safety of the AIS the important basic principals are discussed by the AICPA and CICA:

Security: It provides access for the system to controlling and limiting the data and grants only to authorize individuals.

Confidentiality: It includes the protection of sensitive information to disclosing the unauthorized person.

Privacy: It is referred as the disclosure, collection and use of the personal information which is done by the customer appropriately

Integrity processing: It alludes the complete processing of data on time and accurately which is done with the proper authorization.

Availability: For meeting contractual and operational obligations the system is available.

Role of the AIS in Modern Organizations

It has become essential for most of the organization, and the information is producing by an accounting information system which is associated with strategic perspectives. This is one of most using roles of the accounting information system. However, the internal operations are not just reviewed by the accounts department of the organization, but they are paying attention to working for producing the information which will be beneficial to taking a decision. It is relevant to the competition and external environment of the organization (BAWANEH, 2014).

The Importance of AISs to Accountants

The person who is performing the duties related to the accounting carrier which must be study and connected to the AIS accusing information system and includes concepts.  It doesn’t matter which specific path of the carrier is chosen in the accounting fields and it is mostly related to the use of an accounting information system. It includes accountants who have possible roles which are related to the AISs as;

The can be the regular user of the AIS, and they can be the part of the implementation team of an AIS. They may be auditors of the AIS  (Al-Ibbini, 2017). In the accounting information system, the accountants are paying an important role. It also can answer to the several questions

Who are the employees for accessing the data?

How can the data be accessed, retrieved and stored in the organization?

What are the means of storing the information?

The importance of AISs to specific accounting professions

From the particular business of accounting, the general accounting differs from the accounting information system. The role of the occupation of the accounting can be discussed with the discussion of the accounting information system security which is used to showing the functions of each accountant.

·         The financial information is preparing to buy the financial accountants which are required for the external decision making.

·         The financial information is preparing to buy the managerial accountants which are required for the internal decision making.

·         For the fairness, the financial statements are attesting by the auditors who are involved in the evaluation of the controls.

·         All the activities related to the accounting are controlling by the accounting managers

·         The specification of the accounting information system are devising by the consultants  

Conclusion on AIS Security

It is concluded that the accounting information system, can perform adequately in the organization until to ensure its efficiency, confidentiality, privacy, and security. There is only one reason to use this system, and that is the organization becomes modern by using this system. It is considered as the particular for the departments of the accounts. The primary reason to use this system is to meet the required demands of the accounts department which is linked with the requirements of the modern organization. It has been concluded that if there would not be effective accounting information system security than the current organization will fail to take quick decision. However, the accounting information system allows providing the information which is required by all of these current organization for running their business correctly and taking quick decision.

Furthermore, it can differentiate from one profession of accounting to another profession. It has been concluded that the accounting information system will supports all of the accounting professions for playing role as enabler and supporter for taking the sound and effective decision. Now the accountants of the organization are performing their duties professionally and they are responsible for eliminating fraud, reducing risk and assuring compliance. According to generally accepted Accounting principles (GAAP) it is also used to the transparency of transactions. In addition, with the regards of the ethical issues the accountants are responsible for enhancing the transparency of the transaction for assuring the compliance with GAAP. It includes in the personal and professional duties of the mangers.

 It has been observed in this study that the agencies of the regulation as SEC in USA needs information security to detecting and preventing from frauds. They also required it for the internal control over financial reporting. The AISs also provides the strict ethical principal for the adherence of the accounting departments. The security issues of the organizations are also discussed in the research study which needs proper channels to overwhelming the all of the financial problems of the organization related to the security. The accounting information system security provides the good solution for solving all of these problems.

Limitations and perspectives

There are the several limitations of the research study but two of these are discussed for this research study. These two limits are human limits and reduce spatial.

Human limit:

The human limits of the accounting information security system can be defined as internal auditors, financial controllers, and head of departments, accountants and general managers. Additionally, the staff of the banks and the staff of the departments of the information technology.

Reduce spatial

The other limitations of the study are including as the lack of the knowledge skills which is related to the field of the IT. To using this system properly the educated staff is necessary who can provide the accurate solution. The data must be according to the authentic perspectives rather than the data will be used randomly for various purposes.    

Reference of AIS Security

Accountantnext Door. (2019). SECURING ACCOUNTING INFORMATION SYSTEM OF A BUSINESS. Retrieved from https://www.accountantnextdoor.com/securing-accounting-information-system-of-a-business/

Accounting Edu Org. (2019). What are Accounting Information Systems. Retrieved from https://www.accountingedu.org/accounting-information-systems.html

Al-Dalabih, F. A. (2018). The Impact of the Use of Accounting Information Systems on theQuality of Financial Data. International Business Research, 11(5).

Al-Ibbini, O. A. (2017). The Critical Success Factors Influencing the Quality of Accounting Information Systems and the Expected Performance. nternational Journal of Economics and Finance, 9(12).

BAWANEH, S. S. (2014). Information Security for Organizations and Accounting Information Systems A Jordan Banking Sector Case. International Review of Management and Business Research, 3(1).

Kearns, G. S. (2014). The Importance of Accounting Information Systems in the Accounting Curricula:A CPA Perspective. Educators Journal, 9(1).

Nnenna, O. (2012). The Use Accounting Information as an Aid to Management in Decision Making. . British.

Shanker, S. (2019). Accounting Information Systems & Security. Smallbusiness Chron.