Case 4: Risk Assessment and Information/Communication: Risks and Benefits of Remote Acoess Your company has recently upgraded its accounting software. The consultant who installed the software has explained that a new option makes the system available through the Internet for staff (remote access capability). Previously, staff only had access to the system when they were physically in the headquarters building. With remote access to the system, they would be able to access the system from anywhere by entering their user name and password. Currently, user name and password specifications are not regulated. For example, passwords are allowed to be as short as three characters and may remain unchanged for up to six months. Issues in Accounting Education Polume 25, No. 4, 2010 American Accounting Association 746 Some ot the staff expressed interest being able to access the system from home, especially on weekends, instead of making the drive into town. Additionally, some managers have expressed a desire to be able to access some of the reports when they are away at business meetings. As the IT Audit Director, the decision as to whether to implement remote accece is in your bands, Questions 1. For purposes of evaluating internal controls, how does your client upgrading its accounting software impact your audit risk? Explain. 2. Discuss the upsides and downsides of allowing remote access to the company's system. Be sure to include internal control considerations in your responses. Case 5