Question

1)   The vast majority of firms these days have computer-based information systems. Discuss the main benefits and risks associated with computerized information systems and explain why each item is a benefit of weakness.

2) General controls in an IT environment are very similar to entity-level controls discussed in the reading on the control environment and application controls are very similar to transaction-level controls. Describe the main differences between general controls and application controls. Provide two examples of each to illustrate your answer.

Answer 1

Answers 1) Benefits of Computer based Information Systems Ant In General, a system has Seneral interrelated and Interdependent Subsystems or Components. No Subsystem can function in isolation, it depends on other Subsystems for its Inputs. ☆ The work done. By individual Subsystems is integrated to acheive the Contral goal of the System. The goal of Individual subsystem is of lowes Priority than the goal of the entire System. A The main aimd Purpose of each Information System is to convent the data into information which is Useful & Meaningful. An Information system also aims to support operations, Management and decision-making Risks - * Common Security Risks In relation to Computerised information Systems is the danger of Unauthorised access to Confidential data A The loss of Important Hardware, software or data can have significant effects on an organization's effectiveness,

General Controls! general Controls should be Performed to ensure the develop- -ment, implementation, Operation and Maintenance of Information susters in a planned and Controlled Manner in an Organisation. The Controls at this level provide a stable infrastructure in which information System. Can be built, operated & Maintained on a day to day basis. ex Example is Physical Access Control I Infrasto ucture & Enviorme- -ntal Control Application Control (~) These include the Progra- - is -mmatic routines within the application Program code. The objective of application Controle is to ensure that data gener Complete, acwrate and valid during its Input, Update and storose. The specific controls Could Include from design, source document controls in Processing and output Controls. Any function on that works to ensure the processing accuracy of the application tion can be can be considered an apo considered an application Control Example! Control. ů, Boundary control si, Input Control