Understanding the Impact of IT Risks on Financial Statements: Insecurity, Data Loss, and Accuracy in Accounting

IT risks financial statements accounting data accuracy data security data loss business continuity financial reporting

3.Which are the overarching risks to the financial statements arising from an entity's use of IT? (Select all that applies)[多选题] A.IT applications are insecure B. IT applications are not backed up C.IT applications are processing inaccurate data D. IT applications are inaccurately processing data

The overarching risks to the financial statements arising from an entity's use of IT may include:

A. Insecure IT applications can lead to manipulation or unauthorized changes to financial data, which could impact the integrity and accuracy of the financial information processed by the entity. B. Lack of proper backup procedures for IT applications can result in data loss, compromising the availability of critical financial records. C. Processing inaccurate data through IT applications can result in misstated financial information, contributing to misrepresentation in the financial statements. D. Inaccurate processing of data due to system errors or bugs can lead to misstatements in the financial information reported.

All of these risks can potentially affect the reliability and validity of the financial information presented in the entity's financial statements.

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