Question

Why are internal threats a major challenge for organizations? How can internal threats be minimized?

Answer 1

Failing to properly segregate duties can result in a greater risk of errors or fraud.an effective policies and procedures makes the company dilute by the internal organisation. InProper documentation results in existence of transactions completed, procedures performed, and controls in place. Unless proper oversight and review makes inproper attention to basic internal control monitoring procedures.Not reviewing User access rights for information systems makes the total control system and make a path to internal threat.

This point should be followed to eliminate internal threat

(i) transactions are executed in accordance with managements general or
specific authorization;
(ii) all transactions are promptly recorded in the correct amount in the
appropriate accounts and in the accounting period in which executed so as
to permit preparation of financial information within a framework of
recognized accounting policies and practices and relevant statutory
requirements, if any, and to maintain accountability for assets;
(iii) assets are safeguarded from unauthorised access, use or disposition; and
(iv) the recorded assets are compared with the existing assets at reasonable
intervals and appropriate action is taken with regard to any differences.