Internal Controls on an Accounting Information System

In accounting corpses, trusted controls ar needed to construe that employees argon doing their jobs properly and command that the transcription of rules runs properly. These checks are in the best interest of the organization. These controls succeed in the form of native and external controls for the system. The native controls are the checks that are placed in the system my the companys own management and directors. Today to a greater extent and more companies are moving from the manual accounting systems to data processorized accounting entropy systems. The advantages of a computerized system are increases in the speed and the true of treat accounting information.\n\nHowever, as systems become computerized, the internal controls for that system has to be adapted accordingly. This is because computerized systems run with them certain unique chores that basin unless be removed(p) or minimized by adapting the present controls and adding new controls. These probl ems are\n\n In a manual system in that respect is a paper jumper cable for the internal attendee to follow. All records and proceedings are kept on paper and so an auditor has clear and documented check of what has transpired. Computerized systems rarely have a clear paper trail to follow. Since computers do all of the categorisation of the information the company rarely sorts the source documents. Also the computer does most of the calculations and processing so there would not be the amount of documentation that there would be in a manual system.\n\n Another problem of computer systems is the fact that there brush off be hassle in determining who entered the data. In a manual system the identity of the person debut the data nookie be identified possibly by the persons handwriting. This cannot be done in a computerized system. This makes it very gruelling to determine who is responsible for errors or fraud.\n\n Since the computers do all calculations and processing err ors can occur referable to bad design of the program. This can be difficult to pick up especially if the error does not occur frequently and only does so under item conditions.\n\n Computer systems also tornado new opportunities for fraud. If a computerized system is not set up properly and certain checks not put in past the computer system can be used to swindle the company. The fact that it is difficult to delimit who enters the data only adds to the magnitude of this.\n\nIn collection...If you want to contribute a full essay, order it on our website:

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