Page 426 - Introduction to Business

400 PART 4 Accounting

recovery on schedule. Also, the recovery plan should include procedures for coping
with the nonavailability of data-processing personnel.
After the occurrence of a disaster, even if the firm has an excellent recovery plan,
it may take a few days before the backup site can begin processing accounting infor-
mation. Such a delay requires the company to focus its efforts on processing those
computerized accounting jobs essential to the survival of the organization. Conse-
quently, the recovery team must prioritize accounting applications that must be
processed at the expense of all others. By identifying those accounting applications
deemed critical and by further evaluating the resources required to sustain those
critical accounting applications, decisions are more easily made regarding alterna-
tive work locations, schedules, backup facilities, software needs, data preparation
needs, personnel needs, security, and documentation requirements.
The fourth part of a computer contingency plan is testing the plan. Numerous
potential problems can be eliminated by developing a test strategy. The most effec-
tive way to determine if the contingency plan works is to conduct simulations of
actual disasters. Test results should be reviewed by individuals who took part in the
test. The results of the review should be utilized to identify any flaws in the contin-
gency plan.
The fifth and final component of a computer contingency plan is maintenance
of the plan. An organization should ensure procedures are devised to keep the con-
tingency plan current. Any necessary changes based on the simulated disasters
should be integrated into the documented plan. A plan of action should be pre-
pared for the implementation of changes to ensure even greater protection from
disasters.
The computer contingency plan is a corrective control. The contingency plan is
not designed to prevent disasters from occurring, but when disaster strikes, the
presence of a computer contingency plan enables a company to quickly restore its
capabilities to process critical accounting information and to provide services and
products for its customers efficiently and effectively. Preparation of such a plan
forces a company to prioritize accounting applications into critical and noncritical
categories. Thus, the company will be better prepared to continue processing criti-
cal accounting information.

reality What internal controls have you seen used in the jobs you have had?
CH ECK

Careers in Accounting

Accounting is a field of great diversity and great opportunity. Accounting careers
are available in public accounting, industry, and the government and not-for-profit
areas. Public accounting firms are staffed by Certified Public Accountants (CPAs).
CPAs are licensed by the state in which they work. Basic requirements to become a
CPA include passing the CPA exam and obtaining work experience. CPA firms offer
three types of services to their clients: auditing and other assurance services, tax-
planning and compliance services, and management consulting services.
Accountants who work for industry firms are called management accountants.
All types of industry firms need management accountants, from manufacturing
companies like General Motors to technology firms like Microsoft to retail firms like
Wal-Mart to movie studios like Universal. Fast-food restaurant chains need
accountants. Rock bands need accountants.
Government and not-for-profit organizations need accountants. In the federal
government, accounting graduates can work in a number of places, such as the
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