Research on Internal Control of Accounting Information System under Network Environment. Qing Xie 1,a

Transcription

1 Advanced Materials Research Online: ISSN: , Vols , pp doi: / Trans Tech Publications, Switzerland Research on Internal Control of Accounting Information System under Network Environment Qing Xie 1,a 1 Economics and Management School of Anshun University,561000,China a Christalive@126.com Keywords: Network environment, Accounting information system,internal control Abstract. The rapid development of network information technology makes enterprise information systems expose to an open and complex environment, which brings a severe test to the enterprises internal control. This article mainly analyzes problems which internal control of accounting information system under the network environment may face in the aspects of control environment, risk evaluation, control activity, information and communication and supervision. It also advices that through strengthening the awareness of risk, strengthening supervision, employees training and system control to deal with these problems. Introduction The development of the network information technology has caused great changes in all aspects of society, which has brought opportunities and challenges to accounting work. Under network environment, the enterprise accounting event is increasingly dependent on information systems, the use of information system to control the economic activity and the control of information system has become an important part of enterprise internal control. The development of computer network makes various computer systems inside and outside enterprises connected to each other, which greatly improves the speed of information processing. But at the same time, enterprise information systems have been exposed to an open and complex environment, which has brought a severe test to the enterprises internal control. Therefore, the research on internal control of accounting information system under network environment is important, its significance is mainly manifested in the following two aspects: The internal control of accounting information system will directly affect the operation and development of enterprises. When the accounting information internal control system is not perfect, enterprises may face huge risk, even the survival of enterprises could be threatened. The internal control of accounting information system under network environment can overcome the inadaptability of traditional accounting internal control. With the general use of information technology in the business process, great changes have taken place in accounting environment, traditional accounting information system internal control gradually shows the limitations of itself, hence the accounting information system internal control is facing reform and restructuring. Combining the advanced information technology, management concepts and internal control of accounting information systems, exploring new methods of internal control based on accounting information systems under network environment to guide practice, in this way can we make the internal control useful for enterprises. However, so far, the related research is less. This article mainly analyzes problems which internal control of accounting information system under the network environment may face and gives advices on how to improve it. Problems of Internal Control of Accounting Information System under Network Environment The continuous application of network information technology brings not only advantages but also risks to enterprises. Under network environment, although the enterprise overall goal has not changed, the external environment and internal factors of economic industry and management are different[1]. All rights reserved. No part of contents of this paper may be reproduced or transmitted in any form or by any means without the written permission of Trans Tech Publications, (ID: , Pennsylvania State University, University Park, USA-10/05/16,01:38:55)

2 Advanced Materials Research Vols Internal control of accounting information system under network environment may face problems in control environment, risk evaluation, control activity, information and communication and supervision. Control environment. Control environment is the combine of all influencing factors of internal control system. Under network environment, the internal control environment of the accounting information system changes a lot. Liu et al think network technology can cause changes in the internal control structure, internal control mode and management perspective[2]. The application of network technology makes the enterprise internal information transmission become more unobstructed, enterprise organization structure flat, communication between policy makers and practitioners fast. That inevitably leads to the redistribution of power within the organization, requiring companies to change the organizational structure and division under traditional manual environment system. In this way, enterprises can decrease the internal control level, clear the responsibility of each functional departments and positions and improve working efficiency. At the same time, the enterprise internal information flow and business process have changed greatly. In the new flat organization structure, enterprise internal information communication becomes smoother, relevant personnel can be real-time acquisition no matter at what level the decision-making information is, each part of the enterprise can become the center of the decisions and actions. Network technology requires business organizations to be more scalable, give full play to the initiative of the business sector and learn to manage enterprises in a dynamic environment. Risk evaluation. The change of business process, openness of the system, dispersion of information and sharing of data can make the system from the previous closed state towards opening, which causes risks to the accounting information system in the following four aspects: Risks caused by the change of the authorized way. The supervision of enterprises is accomplished by human, under network environment, as a result of the openness and secrecy of the financial information, all kinds of authorized people own a password or code. Once the password or code was tampered with, it will inevitably cause the network management out of control, leaving the accounting information at risk. Risks caused by computer accounting internal control programs. Under network environment, the internal control largely depends on the quality of accounting information system program. Once vulnerabilities appear in the program, it will cause serious damage to the system security. Risks of accounting information distortion which can be increased by the openness of network. As the network environment has the characteristics of openness, all information in this environment are theoretically accessible. The accounting information system under network environment can easily be accessed by viruses or hackers which will result in huge losses for enterprises. Digitization of original documents makes accounting information insecurity. With the development of network environment, some enterprises original documents has realized digital electronic, proof of the paperless is extremely vulnerable to tampering or damage. These paperless certificates are very easily tampered with or destroyed. Enterprises should also attach great importance to the risk assessment, collect all kinds of information related to risk changes, regularly or not regularly carry out risk assessment, update risk database to provide full and effective data for improving risk assessment[3]. Control activity. Control activities are the control policies and procedures which enterprises develop to ensure the commands are implemented. They are also necessary prevention and measures to reduce losses in the aim of achieving organizational goals. The application of network technology make control means diversity, flexible and efficient which strengthens the internal control function. At the same time, control points change from human-control into combining control of human and computers. Control procedures need to be adapted to the business process, which makes the control and economic business confirmation harder. Information and communication. Information and communication have great help for enterprises to prevent risks. They make enterprise staffs clearly obtain and fulfill information on their

3 2028 Progress in Applied Sciences, Engineering and Technology control responsibility. Accounting information system under network environment has the characteristics of open, real-time and electronic. Supervision. Under network environment, some internal control is programmed by computers and embedded within the computer application system. Hence, internal control has the characteristics of combine of artificial control and program control. Attention must be paid to the supervision of internal control under network environment. Assessment of control design and operation situation should be carried out by appropriate person at the appropriate time[4]. Methods to strengthen the Internal Control of Accounting Information System under Network Environment Strengthen the awareness of risk. Because of the complexity and openness of the network environment, accounting information system faces new challenges and risks. Enterprises should strengthen the awareness of risk, promote risk management to a certain height, establish risk management as the core of the internal control system. Only in this way, the survival and development of enterprises can get more support. Strengthen supervision. Supervision is the process to evaluate the effectiveness of the internal control system. Through continuous monitoring or individual evaluation or a combination of both the supervision of the internal control system can be achieved. Continuous monitoring activities are based on enterprises daily recurring activities which can provide important feedback about effectiveness of other control elements. Individual evaluation is independent of the control activities and takes regular evaluation of the behavior. On the one hand, regularly evaluating the effectiveness of the system directly is necessary, on the other hand, it can also be used to evaluate whether continuous monitoring programs are valid. Employees training. In strengthening the management of the accounting information system internal control process, the human factor is very important. In a good internal control system, each staff shall be clear about their power and responsibility for internal control. It is important to improve risk prevention consciousness of accountants and managers, at the same time, pay attention to the development of the integrated service quality of relevant personnel. System control. Improve the internal control mechanisms of accounting information system specification in regulations and guidelines. The Government should establish and complete e-commerce laws and regulations as soon as possible and formulate network accounting information management in accordance with national conditions to regulate the online transactions and accounting. Specific provisions should be made about corporate online disclosure obligations and responsibilities, network accounting information quality standards, regulators and their responsibilities and so on, to provide the network accounting information system a good social environment.

4 Advanced Materials Research Vols Fig.1 Problems and corresponding solutions for internal control of accounting information system under network environment Conclusions With the rapid development of computer technology and Internet, great changes have taken place in the external environment of enterprises, the traditional internal control of accounting information system has been unable to meet the needs of the new environment. Therefore, establishing the internal control of accounting information system under the network environment becomes very important. The main content of this article is shown in Fig.1, which is illustrating the potential problems which enterprises internal control of accounting information system under network environment may encounter and giving some corresponding solution measures. References [1] T. Cheng: Finance And Accounting Monthly, (2006).8, p.2. [2] Z.Y. Liu and J. Liu: Accounting Research, (2001).12, p.5. [3] R. E. Zhu and X. He: Auditing Research, (2004).6, p.11. [4] S.P. Wu, H. W. Cheng and X. D. Shao: Accounting Research, (2000).2, p.2.

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