The information system of Carlsbad Bottle Inc. is deemed to be 90% reliable. A major threat in

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The information system of Carlsbad Bottle Inc. is deemed to be 90% reliable. A major threat in the procurement process has been discovered with an exposure of $300,000. Two control procedures are identified to mitigate the threat. Implementation of control A would cost $18,000 and reduce the risk to 4%. Implementation of control B would cost $10,000 and reduce the risk to 6%. Implementation of both controls would cost $26,000 and reduce the risk to 2.5%. Given the information presented above and consider an economic analysis of costs and benefits only, which control procedure(s) should Carlsbad Bottle choose to implement?

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Accounting Information Systems

ISBN: 978-0078025495

1st edition

Authors: Vernon Richardson, Chengyee Chang

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