Essay on Hacking: Identity Theft and Information
By Helen Tewolde
This paper will discuss accounting information system attacks and failures: who to blame. I am also going to discuss the following related topics in the following order:
Firstly, I will take a position on whether a company and its management team should or should not be held liable for losses sustained in a successful attack made on their AIS by outside source. Secondly, I will suggest who should pay for the losses, to whom, and state why. Thirdly, I will give my opinion regarding the role, if any; the federal government should have deciding and enforcing remedies and punishment. Finally, I will evaluate how AIS can contribute or not to contribute to the …show more content…
In general, concern about spam, identity theft, and protecting individual privacy have resulted in numerous federal government regulations. If organizations fail to comply with these laws and regulations, they should be liable for the financial and moral damaged they caused. Therefore, organizations, which own the AIS, must pay for the losses of their victims who suffered financial and moral damages.
The Federal Government should Have Deciding and Enforcing Remedies and Punishment
By definition, accounting is an information system, since an AIS collects, records, stores, and processes accounting and other data to produce information for decision makers (Romney & Steinbart, 2012). That means some federal government accounting and auditing regulations are directly or indirectly applicable to the accounting information system. The Sarbanes-Oxley Act (SOX) of 2002 is one of them.
In the late 1990s and early 2000s news stories were reporting frauds at Enron, WorldCom, Xerox, Tyco, Global Crossing, Adelphi, and other companies. In response to this fraud, US Congress passed the SOX of 2002. SOX applies…