Manchester Sales Company is a medium- sized retail operation with an IT staff of 10 employees. The IT staff effectively maintains all accounting functions as well as computer operations. The overall internal control and security system is quite good. However, there are a number of problems. First, all the IT employees know the passwords to each other’s accounts. Although this is a breach of the security system, most employees feel that the other employees are basically honest and that there is no need to worry. Second, employees are lax about document distribution procedures. Almost anybody can come into the server and pick up a printout without an entry being logged into the records. Security has repeatedly complained to these employees about the problem but to no avail.

Required
Discuss the problem of lax security in this company. What are its implications? What can be done about it?