Computerized Accounting Information Systems and Perceived Security Threats in Developing Economies: The Nigerian Case

Abstract

The concept of IT as a business enabler is enshrined in the widespread use of computerized accounting information system the world over. However, this milestone in accounting portends imminent challenges in terms of the integrity of underlying accounting transactions processed by IT equipment and facility, an important question arises: what are the likely threats to computerized accounting information systems resulting from the deployment of IT in business and how can these challenges be overcome especially in developing economies? To analyse this area of interest, Nigerian companies has been chosen as reference. An empirical study was conducted through a structured survey directed to the users of computerized accounting systems. Information was collected in order to explain the perceived threats common to CAIS’s as well as determine what categories of threats were most significant. Results show that employees and outsiders constitute key threats to information assets used in computerized accounting when not controlled effectively. This suggests that management should put in place authorization procedures on a “need to know basis” only. Authorized users should have access to only applications and data required to perform specific tasks only. Also, there should be regular logging and monitoring of logical access to systems and data, policies and procedures on segregation of duties, access and transaction logs.