Safeguarding financial integrity: security and confidentiality in SMEs without dedicated accountants / Nurul Izzah Haziqah Mat Arop and Saflina Azis
In Small Medium Industries (SMEs), the absence of an internal accountant poses a significant challenge, resulting in questionable financial data. As SMEs navigate the complexities of business operations, the role of an accountant becomes increasingly vital. Having an internal accountant provides SME...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universiti Teknologi MARA, Negeri Sembilan
2024
|
| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/105737/1/105737.pdf https://ir.uitm.edu.my/id/eprint/105737/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | In Small Medium Industries (SMEs), the absence of an internal accountant poses a significant challenge, resulting in questionable financial data. As SMEs navigate the complexities of business operations, the role of an accountant becomes increasingly vital. Having an internal accountant provides SMEs with specialized financial expertise, ensuring timely and accurate financial reporting, proper maintenance of records, and compliance with tax laws. However, some SMEs, particularly startups, may opt to forego hiring an internal accountant to save costs, relying instead on accounting software or outsourcing services for financial management. Without internal accountants, SMEs risk unintentionally violating moral and professional guidelines set by regulatory bodies like the Malaysian Institute of Accountants (MIA). The complexity of financial reporting standards, such as the Malaysian Financial Reporting Standards (MFRS), poses further challenges for SMEs, potentially leading to inaccuracies and hindering financial transparency and comparability. The absence of internal accountants in SMEs can lead to various problems, including inadequate management and control over sensitive financial information. Dependence on non-specialized personnel and outsourcing increases the risk of data breaches and compromises confidentiality. Ignorance about cybersecurity among Malaysian SMEs further exacerbates these risks, leaving them vulnerable to cyber threats and privacy breaches. |
|---|