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    Risk Exposures

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    Trish Caluma
    ACCOUNTING INFORMATION SYSTEM

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Risk Exposures

    Uploaded by

    Trish Caluma
    25 views11 pages
    ACCOUNTING INFORMATION SYSTEM

    Copyright

    © Attribution Non-Commercial (BY-NC)

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    PPT, PDF, TXT or read online from Scribd

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    ACCOUNTING INFORMATION SYSTEM

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    25 views11 pages

    Risk Exposures

    Uploaded by

    Trish Caluma
    ACCOUNTING INFORMATION SYSTEM

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 11

    RISK EXPOSURES

    Risk Exposures
    -it may arise from a variety of internal and external sources, such as employees, customers, computer hackers, criminals and acts of nature.

    TYPES OF RISKS

    Unintentional Errors
    -errors may appear in input data, such as in customer names or numbers. -they may appear during processing, as when clerks incorrectly multiply quantities ordered on customers order) times unit prices of the merchandise items.

    Deliberate Errors
    -errors constitute fraud, since they are made to secure, unfair or unlawful gain.

    -it may appear in input data, during processing, or in generated outputs.

    Unintentional Losses of Assets

    -assets may be lost or misplaced by accident. -physical assets may be lost.

    Thefts of Assets
    -a firm assets may be stolen by outsiders, such as professional thieves who break into a storeroom.

    Breaches of Security
    -unauthorized persons may gain access to a firms data files and reports. -security breaches can be very damaging in certain cases, as when competitors gain access to a firms confidential marketing plans.

    Acts of Violence and Natural Disasters


    -certain violent acts cause damage to a firms assets, including data. -violent acts can also arise from nonhuman sources, such as fires that engulf computer rooms, short circuits that disable printers, and natural disasters such as hurricane and floods that destroy computer resources.

    Degree of Risk Exposure


    1. Frequency. The more frequent an occurrence, the greater the exposure to risk. 2. Vulnerability. The more vulnerable an asset, the greater the exposure to risk. 3. Size. The higher monetary value of potential loss, the greater the exposure to risk.

    Problem Conditions Affecting Exposures to Risks


    Collusion. The cooperation of two or more employees for a fraudulent act.

    Lack of Enforcement. A firm may have adequate management policies and control procedures but may look irregularities. Computer Crime. A relative recent heightened proportions is computer crime. risk of

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