Data security challenges in electronic accounting information systems and their impact on the reliability of financial reports

Abstract

In the digital age, electronic accounting information systems (EAIS) play a pivotal role in the collection, processing, and presentation of financial data. However, the increased reliance on these systems has brought forth significant data security challenges that threaten the integrity and reliability of financial reports. This study explores the various security risks associated with EAIS, such as unauthorized access, data breaches, system vulnerabilities, and cyberattacks, and analyzes their potential impact on the accuracy, completeness, and timeliness of financial information. The paper highlights how weaknesses in data security can lead to financial misstatements, loss of stakeholder confidence, and legal implications for organizations. Furthermore, the study emphasizes the importance of implementing robust security measures, including encryption, access controls, and regular audits, to ensure the reliability and credibility of financial reporting. By understanding and mitigating these challenges, organizations can safeguard their financial data and uphold the trust of investors and regulatory bodies.