Answer To: Each question should be 300 words. Question 1: Fraud & Breaches Fraud & data breaches can affect any...
Ca answered on Jun 18 2021
12
ASSIGNMENT
1 ) The consequence of data breaches which businesses experience are severe and they are increasing. Fact is, 93% of successful data breaches occur in less than one minute, but it takes weeks to realize that breach occurred in 80% of businesses.
Data breaches have the following impact.
· Revenue Loss - Drastic revenue loss due to security breaches is common. Studies suggest that 29% of businesses that face a data breach end up losing revenue. Of those that lost revenue, 38% experienced a loss of 20% or more.
· Effect on Brand Reputation – A Forbes Insight report found that 46% of organizations had suffered damage to their reputations and brand value as a result of a data breach; 19% of organizations suffered reputation and brand damage as a result of a third-party security breach.
· Loss of Intellectual Property- The Firm can lose its Licenses, Copyright, Trademark, and Confidential Formulas.
· Hidden Costs such as litigation fees compensation fees, PR, and investigations, not to forget insurance premium hikes Etc will cause a burden to the company.
· Online Vandalism- Hacker will modify few letters or numbers on company’s contact page. He can also add some unwanted content to some of web pages.
Business should take the following steps in case of a data breach
· Immediately contact IT professionals
· Prevent further data breaches and limit the damage at this point
· Contract IT forensic experts from outside to handle the ongoing investigation
· Notify necessary parties
Article supporting my opinion is as follows
(a) Title - Data Security Breach: 5 Consequences for Your Business
(b) Link - https://www.theamegroup.com/security-breach/
(c) Summary – A company can safeguard its data by using encryption and prevent itself from its consequences.
References –
· How Cyber Attacks Can Damage Affect Consumer Perception- www.securelink.com
· Data Security Breach: 5 Consequences for Your Business www.theamegroup.com ›
· https://smallbusiness.chron.com/company-should-respond-security-breach-37191.html
2) In the video fraud auditing is clearly explained by Professor Helen Brown. The three most important concepts which I learned are:
· Management fraud and its types- Fraud can be conducted by the management by way of fraudulent financial reporting with intent to deceive users and to meet earning objectives, this can have a significant impact on the shareholder’s wealth if the business is listed on a stock exchange. Management can conduct fraud by asset misappropriation, cash handling and other physical assets. This can be detected through AIS as we have an asset register in place from that asset can be physically tracked and fraud can be known and asset loss can be prevented.
· Assessing the risk of fraud regardless of management integrity and honesty - SAS 1 states “In exercising professional skepticism an auditor neither assumes that management is dishonest or assumes unquestioned honesty”. AIS comes to the rescue here, all the checks and internal control in Accounting Information System are not biased, it will check the transaction done by the clerk as well as senior management with the same diligence and skepticism.
· Using MAD Scorecard to detect Fraud - We can find the potential fraudster. Examining the employee profiles for personal as well as professional behaviors, doing the analysis and finally finding out the real culprit. This part can be tracked using the AIS and its employee analysis and it will help in understanding the employee needs, expectations, credit history, past performance and past history which is captured in AIS. AIS is a very important tool in this dynamic business environment with complex transactions increasing day by day. AIS serves as a tool to reduce any potential error, facilitates quicker and faster capture of transactions.
3) Certainly, the demand of the, company as well as customer to agree on lower availability of say 80%, will definitely harm the company as well as customers which will not be realized earlier, until when a company has lost a major market share. The impact of lower availability and reliability of systems is long-term. Before agreeing to such an arrangement company should assess its financial condition, its future goals, vision, market share and competition in the industry. In case of Monopoly the impact will be not great as when compared to Perfect Competition.
Here is how lower availability can harm Business
· Productivity loss- In companies which are manufacturing, an unplanned server failure will stop an entire production line. Although some industrial machines are equipped with sensors that utilize edge computing framework to continue functioning...