Task Team of FUNDAMENTAL ACCOUNTING School of Business Sun Yat-sen University ()Electronic devices and computer controls-Accounting systems are relying on the computer to perform basic functions, and therefore, programmers become the focus for internal controls. Businesses use other electronic devices to help protect assets and control operations such as inventory sensors (8 )Other controlsBusinesses often use controls to protect assets such as fireproof vaults(to protect documents), burglar alarms(to protect property ), point-of-sale terminals(to protect cash) Fidelity bonds insure the company against theft by an employee Mandatory vacations and job rotation enhances morale and helps keep employees honest (9)e-Commerce creates some new risks such as protection confidential information 1)Some pitfalls include a Stolen credit-card numbers that can be used by authorized people b Computer viruses(that reproduce themselves) and Trojan horses(that do not reproduce)are vicious programs that can destroy or alter data and/or infect word-procession files c Hackers can impersonate legitimate businesses on the web and solicit confidential data from unsuspecting people 2)Two standard techniques are used to secure e-commerce data. a Encryption rearranges text messages by some mathematical process so that the message cannot be read by anyone who does not know the process b Firewalls limit access to a local network by blocking intruders (10)There are some limitations of internal control procedures D)Internal control systems can be thwarted by collusion between two or more people working together to defraud the firm 2)An overly complex internal control system may be inefficientTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University (7)Electronic devices and computer controls—Accounting systems are relying on the computer to perform basic functions; and therefore, programmers become the focus for internal controls. Businesses use other electronic devices to help protect assets and control operations, such as inventory sensors. (8)Other controls—Businesses often use controls to protect assets such as fireproof vaults (to protect documents), burglar alarms (to protect property), point-of-sale terminals (to protect cash). Fidelity bonds insure the company against theft by an employee. Mandatory vacations and job rotation enhances morale and helps keep employees honest. (9)e-Commerce creates some new risks such as protection confidential information. 1)Some pitfalls include: a.Stolen credit-card numbers that can be used by authorized people. b.Computer viruses (that reproduce themselves) and Trojan horses (that do not reproduce) are vicious programs that can destroy or alter data and/or infect word-procession files. c.Hackers can impersonate legitimate businesses on the web and solicit confidential data from unsuspecting people. 2)Two standard techniques are used to secure e-commerce data. a.Encryption rearranges text messages by some mathematical process so that the message cannot be read by anyone who does not know the process. b.Firewalls limit access to a local network by blocking intruders. (10)There are some limitations of internal control procedures. 1)Internal control systems can be thwarted by collusion between two or more people working together to defraud the firm. 2)An overly complex internal control system may be inefficient