The Expanded Risk Horizon of Accounting Networks Utilizing Wireless Technology

Abstract

One of the major professional responsibilities of accountants and auditors is to identify and evaluate the risks in accounting information systems. More and more accounting systems are utilizing wireless data links, including 802.11 “wi-fi” segments. Because of marketing claims and personal experiences, it is widely believed by both professionals and the public that today's 802.11 wireless equipment has an operational range of well under 500 feet. This paper reports on an experiment which established reliable, high-speed connections across a distance of 56 miles using commercial off-the-shelf equipment. The results provide empirical evidence that the risk of undetected eavesdropping on modern Wi-Fi network transmissions extends to at least a thousand times as far as the commonly-recognized range of these networks. This experiment vividly demonstrates the possibility that accounting data is at risk well outside the normal sphere of expected vulnerability recognized by auditors and systems evaluators. Without a full understanding of characteristics of wireless data transfer, accountants and auditors could easily fail in their evaluation and assessment of the safety, integrity, and security of the accounting system.