AICPA Trust Principles, IT controls Accounting, Finance Case Study (Case Study Sample)
We will continue our discussion of how information technology affects the internal control environment, with the help of representatives from Ernst & Young.
1. Read TW Chapter 4
2. Watch Video on AICPA Trust Principles Discussing Inherent Risks in IT Systems
3. Watch Video on Control Activities for IT Systems
From a news source or the Internet, find and briefly summarize an example of an IT control failure of an organization. Categorize the failure into one of the five categories of the AICPA’s Trust Services Principles. Briefly discuss a specific IT-related control that could have prevented the IT control failure.
AICPA Trust Principles
According to AICPA guidelines, five types of risks inherent to IT systems include security, process integrity, availability, confidentiality, and online privacy (Williamson, AICPA Trust Service). The control systems that an organization can consider to mitigate these risks are authentication, organizational structure, and implementing measures to prevent hacking and other types of data theft (Williamson, General IT Controls). In 2019, British Airways (BA), a large UK-based airline, faced an enormous data breach causing it to compromise the information 500,000 customers. The attackers directed a false code to the third-party script of BA’s website that enabled them to hold their control. After this, they were able to scrap the credit card number of each passenger entering their details to book their tickets online (Stokel-Walker). Hence, it tricked customers into disclosing their personal information.
As for the five categories of AICPA’s trust principles, this disaster falls under the c
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