Read the following article and answer the questions that follow:
Safeguarding Information
Organizations seek to collect and store valuable information to improve business performance; yet by doing so, the information asset becomes a prime target. Fighting cybercrime has become an ongoing battle for some enterprises as they try to prevent and detect cyberattacks on information assets. Because information assets have value, the accounting system must safeguard the information stored. In today’s business environment with financial frauds, lapses in ethics, and cybercrime, a crucial aspect of accounting systems is security and controls to safeguard information assets stored in the system. To protect information assets, organizations implement security and controls to prevent fraud, unauthorized access, modification, destruction, or disclosure. Internal control is the set of policies and procedures enterprises use to safeguard assets, including information assets, and to prevent and detect errors. Limiting access to your enterprise’s accounting system by requiring a valid user ID and password is an example of an internal control.
In the aftermath of the Enron financial scandal, which involved massive fraud, there is increased emphasis upon preventing and detecting fraud. There is also an increased focus upon ethics within the accounting profession. The Sarbanes-Oxley Act of 2002 (SOX), the
U.S. legislation passed after the Enron scandal, requires that publicly traded companies assess the effectiveness of their system of internal controls and that an independent CPA firm audit this assessment. IT audit plays a critical role in assessing security and controls for an enterprise’s IT and accounting applications.
When designing an accounting system, it is crucial that security for information assets is considered to prevent fraud and unauthorized access. Security and controls are needed for accounting systems, accounting databases, shadow data systems, and BI applications.
Adapted from: Kay and Ovlia, 2013.

QUESTION ONE [40]
With the use of relevant research, examine the role of internal controls in preventing fraud, unauthorized access, modification, destruction, or disclosure of information. (20)
With the use of relevant research elaborate on the role of the Sarbanes-Oxley Act in preventing fraud. (20)

QUESTION TWO [30]
Determine the concept of a hierarchical database. (15)
Elaborate on each of the different types of database languages. (15)

QUESTION THREE [30]
Determine with the use of a relevant example each of the five (5) steps in the transaction processing cycle. (15)
Examine with the use of relevant example the function and components of a decision support system. (15)

Answers to Above Questions on Safeguarding Information

Answer 1: Internal control plays an important role in preventing fraud, unathorised access, and destruction and diclosure of information across organisations. Efficient internal control within the organisation helps in reducing the overall chances of fradulent activities and also enhances the integrity and reliability of information as well.

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