Business Accounting Issues and the Importance of Cyber Security

This study material discusses the growth of blockchain technology and the importance of cyber security in the business world. It also explores the role of accountants in recording and managing financial data, and the consequences of non-effective accounting frameworks. The material emphasizes the need for proper accounting software and alignment with international accounting standards to avoid business collapses. References to relevant articles provide further insights.

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Table of Contents
Week-7..................................................................................................................................................1
Week-8..................................................................................................................................................2
Week-9..................................................................................................................................................3
References.............................................................................................................................................5

Week-7
Block chain in the past few years have grown exponentially. So much so that today
it's worth millions of dollars. I found that it only seems to be growing to be an even bigger
industry. In 2013 the technology in the block chain space was nascent. It was not proven and
indeed very confusing. No one could have imagined that it would boom to become the huge
industry that it is today. Today Crypto/Ethereum has become household names and hence
preparing myself on the workings of it was vital if not anything else. The lecture also showed
me how technology can progress with such a quick frame of time. For instance staple names
associated with block chain such as the Crypto and Ethereum communities were only in their
beta stage and today they are flourishing like never before. Cyber security consist of control,
techniques, technologies, ad processes to safeguards the systems, networks, data and
information from the cyber-attack and hacking. After assessing the several articles and
details, I found that cyber security can be effectively secured by efficient techniques. It
decreases the risk of the cyber-attacks and also protect against the invalid unauthorized
exploitation of the network, technologies and systems (Summers, & Sweeney, 2018). There
is a technical term known as robust cyber security that includes implementation of control
based three pillars: people, processes and technology. According to me, the cyber security is
very important for a business as it has direct impact on the functioning of the same. If there is
a lack of focus in the cyber security, it can create great damage to the business organization.
Generally, such damages results directly in the economic costs. Cybercrimes taking place are
theft of corporate data and information, disruption to the trading, loss of entire company
details. I found that Cyber-attacks can affect and cause great financial loss and reputational
damage to even the most prominent organizations. It is that if a company is facing cyber-
attack, they can lose their assets, reputation and business, data and information (Amran, et al.
2008). Potentially they can face many regulatory fines, rules and regulations, litigation as
well as they have to pay the costs of remediation. I also prepare myself to meet the
challenges and also to identify and secure opportunities when it comes. I found that if the
proper security system and problem are managed then it will help respondents and
stakeholders to resolve the IT related issues in effective manner. I found that in case of Block
Chain, cyber security should be managed properly and supported by the advance
technologies. Most of the capital need be invested on the anti-virus software installations
which will curb the ill-intentioned users to make the bombing attacks on the investors of the

block chain activities. Now in end, I could easily sum up by saying that if the proper security
program and technical work system in installed in the process then it will strengthen the
block Chain work program on international level.
Week-8
After completion of my graduation I was employed by a big accounting firm. I was
handled the work of accountant to prepare the accounting statement of various companies. I
found that accountant is the person who is responsible in recording, documenting and storing
the financial data of company. I learned during my experience that every financial statement
such as income statement, balance sheet and cash flow statement of company needs to be
supported by the proper invoices and documents. . It is analysed that many companies such as
JB Hi-Fi, Woolworths, Telstra and other big international companies have faced the business
collapse issues due to non-effective accounting framework. I think that all the companies
operating their business on international level should record its financial statements in the
accounting software. These all the companies failed to record the books of account due to the
non-effective accounting software system in its accounting process. The accounting process
of companies should be supported by the proper recording, documenting and managing the
financial transactions in the books of account of company. Most of the collapse of the
business happened due to the discrepancies of the functions made by the accountants. He is
responsible to reveals the record the financial data of company (Ross, Westerfield, & Jordan,
2008). Most of the corporate collapses happened due to the non-effective accounting of
accountant such as HIH insurance, Dick smith and other big companies have faced the issue.
I learned that how accounting process is among other factors that has contributed to the
collapses of the above given big companies. These all companies prepared its books of
account on the basis of the falsified details which was the mistake of its accountants. These
accountants did not consider the any of the invoices and right documents while preparing the
books of account. I learned that these financial accounting issues arise from the beginning
and if it is not sorted by the accountant of the companies then it becomes in the future. I have
found that financial statements are the very essential for the stakeholders and investors to
assess the financial performance of company and in order to make investment decisions,
these financial statements are assessed by these investors. This accounting knowledge has
helped me learn the key aspects of the financial recording of the transactions and how
companies could save themselves from the business collapse if they follow proper accounting

frameworks and accounting system. Nonetheless, with the increasing complexities of the
business, every accountant of the company should focus on installing the accounting software
system such as SISA, MYOB and other accounting software’s to record the books of account
of company (Amran, et al. 2008).
Week-9
With the change in time, many companies have been facing business accounting
issues due to the weak accounting control system. After reading the article given by Brennan,
& McGrath, (2007), I have found that company needs to align its domestic and international
accounting frameworks if it wants to disclose the true and fair view of its recorded assets and
liabilities in its books of account. This article review the studies of the 14 companies, which
had faced the fraudulent financial statements in the books of account. In the case of HIH
Company, auditors of the company found that company was disclosing the falsified
document and details and failed to manage the business process effectively. This company
was having less effective internal control system (Summers, & Sweeney, 2018). In the
Kingston Cotton Mill company, I analysed that auditors found the discrepancies in the
accounting and reporting frameworks. All the companies which faced collapsed in the article
given by Brennan, & McGrath, 2007), I found that these companies failed to comply with the
applicable accounting standards while preparing its financial statements. I read in the article
shared that every companies needs to set up harmonization in the books of account with the
international accounting standards if they wants to maintain transparency and accuracy in the
books of account (Summers, & Sweeney, 2018). I found that auditors are in the fiduciary
position to the stakeholder and they have to indulged in assessing the books of account of
company and identifying whether the revealed financial translations of the company are
showing the true and fair view or not. The KPMG being the auditor of more than 5
companies which got collapsed divulged that company failed due to the mistaken in its books
of account and there was no supporting documents which could be helpful for it to sustain in
the market. These all companies prepared its books of account on the basis of the falsified
details. I learned that these financial accounting issues arise from the beginning and if it is not
sorted by the accountant of the companies then it becomes in the future. In the corporate
governance of Macquarie University, I found that this university comply with the all the
applicable rules and regulation. It has strengthen its legal compliance by complying with the
possible corporate regulations. It also helps Macquarie University to sustain its university in

long run. The corporate compliance department of University is accompanied with the more
than 10 legal compliance officer who helps University to comply with the applicable laws
and regulation and helps it to sustain in long run. In my past job as assistant accountant in
company, I experienced that auditors could help company to identify these issues but
accountants of the company are the one who create. Therefore, all the international
companies should also indulged in hiring separate internal audit department to check the
discrepancies in the books of account.

References
Amran, A., Manaf Rosli Bin, A., and Che Haat Mohd Hassan, B. (2008). Risk reporting: An
exploratory study on risk management disclosure in Malaysian annual reports. Managerial
Auditing Journal, 24(1), 39-57.
Brennan, N. M., and McGrath, M. (2007). Financial statement fraud: Some lessons from US
and European case studies. Australian Accounting Review, 17(42), 49-61.
Ross, S. A., Westerfield, R., and Jordan, B. D. (2008). Fundamentals of corporate finance.
Tata McGraw-Hill Education.
Summers, S. L., and Sweeney, J. T. (2018). Fraudulently misstated financial statements and
insider trading: An empirical analysis. Accounting Review, 131-146.