Abu Bakar Malami, Zaini Zainol, Sherliza Puat NELSON

SECURITY THREATS OF COMPUTERIZED BANKING SYSTEMS (CBS): THE MANAGERS’ PERCEPTION IN MALAYSIA

Internal control system is an important pillar in an organisation. Considering the evidence from major accounting fraud cases that occurred consequence to weak internal control, such as Enron, it could also occur in a financial institution. Hence, the objective of this study is to investigate the bank managers’ opinion on the likelihood of security threats in the computerised banking systems (CBS) in Malaysia. Since most major financial institutions operate in the capital city of Kuala Lumpur, questionnaires were sent to selected bank branches in Kuala Lumpur. The findings are expected to provide a platform for bank managers to share their threats’ experience. Secondly, to assist them in designing and formulating a sound and effective internal control system that will provide reasonable assurance for achieving the bank’s mission. Findings are also expected to provide general insights of internal control system, as most information is very remote and confidential, thus generate a platform for promoting an efficient and effective internal control practice in financial institutions.

Keywords:

Threats Internal Control, CBS, Malaysia,

PDF

___

Abu-Musa, Ahmad A. (2006b), “Exploring Perceived Threats of CAIS in Developing Countries: The Case of Saudi Arabia”, Managerial Auditing Journal, UK, Vol. 21, No. 4, pp. 487- 407.
Abu-Musa, Ahmad A. (2006a), "Evaluating the Security Controls of CAIS in Saudi organizations: The Case of Saudi Arabia", The International Journal of Digital Accounting Research., Vol. 6, No. 11, pp. 25- 64.
Bierstaker, J. L; R. G. Brody; and C. Pacini, (2006) “Accountants' Perceptions Regarding Fraud Detection and Prevention Methods” Managerial Auditing Journal, UK, Vol. 21, No. 5, pp. 520 -535.
Casolaro, L. and Gobbi, G. (2004). Information technology and productivity changes in the Italian banking industry. Report Published by Bank of Italy Economic Research Department, pp. 1-26
Chang S. and Jan D. (2010). SOX 404-compliant ERP system internal control framework: The preliminary outcome. Business and policy research, pp. 282 – 295.
Davis C. E. (1996). Perceived security threats to today’s accounting information system: A survey of CISA, Information system audit control journal, Vol. 3, pp. 38-41
Gupta A. and Hammond R. (2005). Information systems security issues and decisions for small and business: An empirical examination. Information management & computer security, Vol. 13, No. 2, pp. 297-310.
Jackson C., (2000) “Discussion of Information Technology-Related Activities of Internal Auditors”, Journal of Information Systems, Vol. 14, No. 1, pp. 55-56.
Kankanhalli, A., Teo, H., Tan, B. and Wei, K. (2003). An integrative study of information systems security effectiveness. International Journal of Information Management, Vol. 23, No. 2, pp.139-148
Kreicberg L. (2010). Internal threats to information security; countermeasures and human factor within SME. Master’s thesis, Lulea University of technology
Loch, Karen D., Houston H. Carr and Merrill E. Warkentin (1992). Threats to information systems: Today’s reality, yesterday’s understanding. MIS Quarterly, pp. 173 - 186. Salehi M., (2010). Usefulness of accounting information system in emerging
economy: Empirical evidence of Iran. Economics and Finance, Vol. 2, No. 2, pp. 186-195.
Strong, J. M., Portz K. and Busta B (2006). A First look at the accounting information systems emphasis at one University: An Exploratory Analysis. The Review of Business Information Systems, Vol. 10, No. 2, pp. 235-256.