Accounting Information System for More Pty Ltd - myassignmenthelp

Question: Discuss about theAccounting Information System for More Pty Ltd. Answer: Introduction Accounting information systems play an essential role in collection, storing, processing as well as recording of data for providing information during the process of decision making. These systems are made up of interrelated components, where it is divided into smaller sub-systems helping to achieve the organizational objective. The key characteristics of accounting information system are relevance, completeness, timeliness, verifiability, accessibility, understandability as well as reliability. Web-based systems and its wide-spread usage have helped the accounting information systems to identify organizational risks along with the creation of accounting procedures for maintaining optimum control over risk (Belfo Trigo, 2013; Accounting Information Systems, 2013). The key objective of the paper is to discuss the revenue cycle, weaknesses related to internal control along with the processes to mitigate the risks arising due to the weaknesses. Additionally, Ransom-ware attack and its brief overview have been explained in this paper. Overview of Revenue Cycle Figure: Revenue Cycle Revenue Cycle is referred as a set of business activities, helping to exchange goods as well as services for cash with the customers. Maximum of the transactions in todays business takes place on credit, where the amount is paid after the goods are shipped on time to the consumers. There are two key phases in the revenue cycle, which starts with the physical phase, where the good is received by the buyer and ends with the financial phase, where the buyer pays the cash for the delivered product. As mentioned in the accounting information system, there are two subsystems handling the above mentioned phases (Hall, 2008; Hall, 2012). The subsystems include processing of sales order for the physical phase while cash receipts look after the financial phase. Additionally, activities of revenue cycle are divided into two major categories including manual system and computerized system. Manual systems follow the manual procedures of sales, billing, warehouse, credit, shipping, general ledger, accounts receivable as well as inventory control. Moreover, sales returns, cash receipts, control of revenue cycle are parts of manual system. Accounting system based on computers start with automating the process of sales order through batch technology and reengineering the same with real-time technology. The procedures of manual systems are enhanced with the use of information technology, where procedures of cash receipts get automated and reengineered. Usage of Point-of-sale (POS) systems as well as reengineering through EDI along with Internet has made the process of revenue cycle easier than before (Hall, 2008; Hall, 2012). Identification of Practical Controls Table: Weaknesses, Impacts and Measures for the Identification of Practical Controls (Source: Ayam, 2015; Treasury Inspector General for Tax Administration, 2015; Office of the Auditor General of Canada, 2004) Overview of Ransom-ware attack Based on the case study as reported by ABC (2017), it has been found that in May 2017, 57000 organizations in nearly 100 nations suffered cyber attack globally, including Ukraine, Russia, Taiwan as well as India among others, where the un-patched older versions of Microsoft windows were commonly used (ABC, 2017). This cyber attack was identified as a ransom-ware attack named Wannacry, which created a flaw in the software of Microsoft Corporation (McGoogan, Titcomb Krol, 2017). The cyber attackers took advantage of the vulnerabilities related to the older version of Windows operating system. Additionally, European nations including Spain and Portugal among others were forced to turn down the patients in the clinics as well as hospitals because they lost access due to the cyber extortion of ransomware. According to British cyber centre, FedEx Corporation, which is the leading shipper globally, was one of the victims of the attack, where the systems got affected due to the malware ente ring through spam mails (ABC, 2017). The National Security Agency identified that hackers were spreading a ransom-ware that locked up files as well as folders completely. Wannacry ransom-ware demanded payments during the cyber attack on systems of several users, where hackers used this trend for quick payout of money. A ransom-ware is described as a cyber attack or virus, which takes full control of others system and blocks away all sources of access to it until and unless the asked amount is paid (McGoogan et al., 2017; ABC, 2017). Based on the research conducted by the Kaspersky Lab experts, Ransomware demands nearly $300- $600 for restoring the system, which increases every two hours if not paid (ABC, 2017). The process starts when a user unintentionally clicks on a ransom-ware link or downloads it. The hacker through malicious software enters into the system as soon as the link is opened and launches the attack to lock down the system as a whole, where access of the owner gets d enied. Microsoft had already issued patches for the software to fix up the issues but majority of the people were still found using the same old version (McGoogan, Titcomb Krol, 2017; ABC, 2017). Recommendations and Conclusion Considering the motherboards and More Pty Ltd, such a ransom-ware cyber attack may occur in the future. Therefore, the company should follow the measures of controlling the information security, monitoring as well as documentation as mentioned above. Data should hence be saved in more than one systems, where if one systems gets attacked by the ransom-ware, the other system can be used for the accessing the data. Encryption of data is compulsory, which reduces the chances of cyber attack as encrypted data cannot be hacked easily by any hacker. Day-to-day recording of data should be done by Motherboards and More Pty Ltd., which will lessen the burden with the passage of time. Access should be made limited for the users, which will further prevent clicking on dangerous links as well as sites. Additionally, Motherboards and more Pty Ltd should use latest version of Microsoft windows or any other operating system with fix-patches installed in it to prevent their system from the disruptive attack of Ransomware. Accounting information system plays an important role and simplifies the processes of collecting, recording as well as handling data and information. Proper techniques used during electronic data storage will secure the data for a longer duration, where the leaders or managers can effectively conduct a decision making process. Conclusively, it was found that a ransom-ware is a dangerous attack and therefore Motherboards and More Pty Ltd should follow the processes as mentioned in the study. References ABC. (2017). Biggest ransomware outbreak in history' hits nearly 100 countries with data held for ransom Retrieved September 21, 2017, from https://www.abc.net.au/news/2017-05-13/biggest-ransomware-outbreak-in-history-hits-nearly-100-nations/8523102 Accounting Information Systems. (2013). Accounting Information Systems Explained. Retrieved September 20, 2017, from https://www.accountinginformationsystems.org/ Ayam, J. R. A. (2015). An analysis of revenue cycle internal controls in Ghanaian universities. Case Studies in Business and Management, 2(2), 1. Belfo, F., Trigo, A. (2013). Accounting information systems: Tradition and future directions. Procedia Technology, 9, 536-546. Hall, J. A. (2008). Accounting Information Systems. United States: Cengage learning. Hall, J. A. (2012). Accounting Information Systems. United States: Cengage learning. McGoogan, C., Titcomb, J. Krol, C. (2017). What is WannaCry and how does ransomware work? Retrieved September 20, 2017, from https://www.telegraph.co.uk/technology/0/ransomware-does-work/ Office of the auditor General of Canada. (2004). 2004 march report of the auditor general of canada. Retrieved September 20, 2017, from https://www.oag-bvg.gc.ca/internet/English/att_20040306xe05_e_13231.html Treasury Inspector General for Tax Administration. (2015). Annual assessment of the internal revenue service information technology program. Retrieved September 20, 2017, from https://www.treasury.gov/tigta/auditreports/2015reports/201520094fr.pdf