During an Audit of Chien Products, You Note That All

question 63

Essay

During an audit of Chien Products, you note that all new accounting employees are set up with a temporary password of "abc123".You also noted that employees are not required to change their passwords when they first set up their accounts, nor is there a requirement to change passwords regularly.Write a paragraph describing the implications of these IT risks.

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Definitions:

Reserve

Assets held back or saved for future use or to meet unforeseen needs, often referring to banks' reserves of cash.

Demand Deposits

Money in bank accounts that can be withdrawn "on demand" without any advance notice.

Junk Bonds

High-yield bonds that carry a higher risk of default compared to investment-grade bonds, typically issued by companies with lower credit ratings.

Real Estate Loans

Loans specifically provided for purchasing property, including both residential and commercial properties.