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By Roy L. Wesley

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Management should therefore be more interested in avoiding losses than in trying to purchase insurance to cover every possible risk. A costly fallacy in any loss prevention program is the belief that management can hide behind an insurance policy as a form of protection. Insurance is a form of risk transfer and final recovery will only be a portion of the actual loss. Most insurance companies now demand that management implement preventive measures and techniques before issuance of a policy. Today insurance is regarded as a second line of defense against possible losses that are otherwise unavoidable.

If your company has a cost accounting department, do you know if your charges are accurate or are you contributing to the fraud? ASSET ACCOUNTABILITY Within the accounting system function, there are two types of assets, current and fixed. The first group, current assets, can be defined as cash, inventories (see Chapter 8), and receivables. Although this group is very important and represents large dollar amounts, our main concern here is fixed assets, which represent a business's permanent investments.

Information Security 49 locations. The 414 Gang has demonstrated that anyone with one of the popular new microcomputers has the potential to unlock the secrets contained in machines operated by banks, hospitals, corporations, and even military installations. How safe do you feel now? W h a t can you do about it? W h a t will you d o about it? SOME SOLUTIONS We have identified some situations involving breaches of information security. The following, not in priority order, are some thoughts and comments regarding what can be done to reduce theft of information.

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