Реферат: Untitled Essay Research Paper In accounting systems

Untitled Essay, Research Paper

In accounting systems, certain controls are needed to ensure that employees

are doing their jobs properly and ensure that the system runs properly. These

checks are in the best interest of the organization. These controls come

in the form of internal and external controls for the system. The internal

controls are the checks that are placed in the system my the company’s

own management and directors. Today more and more companies are moving from

the manual accounting systems to computerized accounting information systems.

The advantages of a computerized system are increases in the speed and accuracy

of processing accounting information.

However, as systems become computerized, the internal controls for that system

has to be adapted accordingly. This is because computerized systems bring

with them certain unique problems that can only be removed or minimized by

adapting the present controls and adding new controls. These problems are

· In a manual system there is a paper trail for the internal auditor

to follow. All records and transactions are kept on paper and so an auditor

has clear and documented proof of what has transpired. Computerized systems

rarely have a clear paper trail to follow. Since computers do all of the

sorting 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.

· Another problem of computer systems is the fact that there can be

difficulty in determining who entered the data. In a manual system the identity

of the person entering the data can be identified possibly by the person’s

handwriting. This cannot be done in a computerized system. This makes it

very difficult to determine who is responsible for errors or fraud.

· Since the computers do all calculations and processing errors can

occur due to bad design of the program. This can be difficult to detect

especially if the error does not occur frequently and only does so under

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