Efficiency of Accounting Information System and Information Security Investment Impact on Firms Performance: A Review

Abstract

Accounting Information systems should be kept safe and protected at any moment because it contains a very sensitive and confidential information. It has become vital for firms to secure their information securely as a threat to information is rapidly increasing in malicious attacks on the firms’ IT infrastructure in which it could affect business continuity. Also, penalties of inadequate security could make firms suffer substantial fiscal loss. As information technology is playing a major role in our businesses and organization today, the rate of security threats also increases, firms are encouraged to invest in a comprehensive and strong IT security set- ups to protect and safeguard the accessibility, integrity, confidentiality of accounting information from vulnerable of threat because it can cause substantial financial consequences, losing of customers, and impairment of good will amongst others. Thus, the drive of this research is to evaluate the impact of firm’s investment on information security and accounting information system efficiency on the performance of firms which indicated that a good internal control ensures reliable financial report for decision making, in which the qualitative method of data collection was used which the previous literature was reviewed and other secondary data was also used for the purpose of the study. From our findings, we discovered that unceasing investments on information security procedures lessens the risk of attack from cyber threats and failure of information system.  The researchers therefore commend businesses and organizations to take a vigorous method to information security plans and control. Also, to regulate the IT menace of some security occurrences, it is essential for firms to progressively invest in diverse security technologies considering the significant information technology related and non-information technology related security investment factors, and it is vital for businesses and organizations to know the impact of information security investment on performance.

Keywords: Accounting Information System, Firm performance, Investment, Security Technology.

Abbreviation

AIS - Accounting Information System

IT - Information Technology.