Accounting Information System (CA51019)

while ethical issues are based on the practice of

people. (Something legal can be unethical)
Module 3: Ethics, Fraud, and Internal
Control
Ethics are principles of conduct that individuals
use in making decisions that guide their
People behavior in situations involving the diea of
The core of any business is its people - and right and wrong or between what should be
their indvidual attributes, including integrity, done and what should not be done.
ethical values, and competence - and the
environment in which they operate. Business Ethics involves answering 2 questions:
1. How do managers decide what is right
They are the engine that drives the entity and in the conduct of business?
the foundation on which everything rests. 2. How do managers achieve what is
right?
Fraud Myths VS Fraud Facts
Making Ethical Decisions
1. Align it with the standard of practice or
guidelines
2. Make a better judgement to avoid or
resolve conflicts

It is the ethical responsibility of an organization

managers to seek a balance between the risks
and benefits to employees, shareholders,
customers and the public.

This includes adherence to the principles of:

Control Myths and Realities 1. Honesty
2. Competency
3. Trusworthiness
4. Truthfulness
5. Transparency
6. Accountability
7. Justice

The benefits of the decision must outweigh the

risks. No alternative should provide greater
benefit or less risk.

Examples of Ethical Issues in Business

“Internal controls gets us where we want to go

without surprises along the way. Internal control
is me.”

Ethical Issues in Business

Ethical standards are derived from social

group mores and implaneted personal belief
regarding problem with right and wrong that
are not universally set.
● Whistle Blowing System - Costly;
Ethical issues must not be construed with legal Identity of the one who whistle blowed
issues. Legal issues are based on written laws, will be anonymous and highly protected

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 science with the goal of bringing some
Computer Ethics
new understanding to the field.

It is the analysis of the nature and social Issues in Computer Ethics

impact of computer technology and the 1. Privacy. Full control of what and how
corresponding formulation and justification of much information about and individual
policies for the ethical use of such technology is available to other and to whom it is
which includes: available.
a. Details about software 2. Ownership. State or fact of exclusive
○ If computer is slow; rights and control over the property like
○ Malware; Intellectual Property. (E.g. UST PPT
Template)
○ Build-up of temporary files; 3. Security. Involves accuracy,
○ Computer keeps restarting confidentiality & integrity. (E.g.
because of virus, malware, or Blackboard, UST Cloud Campus
updates; Integrity)
○ Driver issues with regard to 4. Equity in Access. Issues related to
mouse, keyboard, etc. economic status, culture and safety.
○ Happens in only one (E.g. Bringing your own device to access
application your files instead of public computers in
b. Hardware schools; what’s yours must be yours
○ Not enough RAM; alone; Asynchronous videos may be
accessed in BB only; SAP through Cloud
○ CPU is old;
Computing)
○ Motherboard, graphic card 5. Environmental. Reports printing should
issues; be minimize due to the presence of the
○ Computer port issue of electronic copy, papers comes from
keyboards and mouse; trees.
○ Happens in more than one 6. Artificial Intelligence. Knowledge
application system that more or less clone the
c. Concerns about networks connecting managers decision like Decision
computers Support System (DSS) and Executive
d. Computers themselves Support System (ESS).
7. Unemployment and Displacement.
Computer Ethics Issues Example: Wi-Fi is Technology ease and flatten task
slow. This may be caused by an application in hierarchy.
the background that is consuming the 8. Misuse of Computers. Copying
bandwidth; another cause is maybe the hard propriety software, personal benefit
disc is failing. usage, accessing files are among others
various misuse.
3 Levels of Computer Ethics
1. POP computer ethics is the exposure Sarbanes-Oxley Act (SOX Act of 2002)
to stories and reports found in the Sabarnes-Oxley Act (SOX) is the most
popular media regarding the good or important law to protect the interest of the
bad implications of computer public, with provisions specifically focus on
technologies. capital markets, corporate governance and the
2. Para computer ethics involves taking a auditing profession.
real interest in computer ethics cases
and acquiring some level of skill and Section 406 requires public companies to
knowledge in the field. (E.g. Certified disclose to the SEC, Code of Ethics that applies
Information System Auditor - CISAs) to CEO, CFO and Controller which addresses;
3. Theoretical computer ethics involve a. Procedures for dealing with conflicts
interest to multidisciplinary researchers of interest. (E.g. Officials giving flowers
who apply the theories of philosophy, wherein sila rin may ari nung flower
sociology, and psychology to computer shop)

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