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PREPARED BY

SYED FARHAN ALI

REG-ID 10574

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y In today's fast changing world the importance ofcomputerized accountinginformation system can beillustrated by the following fact.

y The average company experiencing computer outagelasting ten days or more will never fully recovered.

y Most of these companies are out of business withinyears.

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y Outage reasons

y Incidents like floods, hurricane, earthquakes andother natural or human disasters are the main reasons

that can seriously effects the availability of thecomputerized accountinginformation system.

y Solution

y In order to effectively and efficiently recover from the

disaster companies are now implementing andeffective disaster recovery plans

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y The disaster recoveryplanis a comprehensive set ofmeasures and proceduresput into place within anorganization to ensure that essential, mission criticalresources and infrastructures are maintained or

backed up by alternatives by various stages of adisaster

y Objectives of Disaster recoveryplan

y The comprehensiveness of a companys disaster

recoveryplanning has a critical impact on howeffectively and efficiently a company recovers fromdisruption.

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Aproper DRP satisfies the following objectives.

y Protection of assets and records

y Resumptionofnormal operations

y Protection ofpersonnel

y Continuity ofmanagement

y Minimization of loses and recovery time.

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Disadvantage ofnot having DRP

y A competitive disadvantage for the company duringeven the shortest business interruptionis that

competitors will have the opportunity to sell to thecompanys customers.

y The underlying theme of these issues is that there aresubstantial costs associated with the risk ofnot

implementing a DRP. The cost ofnot havingplaninplace can be severe enough to cause bankruptcy.

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Internal Control and Disaster Recovery Planning

y One must first understand which aspects of acompanys accountants are viewed as the most

important. Establishing and maintaining anappropriate internal control systemis necessary toensure relevant, reliable accountinginformation.

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PrimaryObjectives ofInternal Control

y Reliability and integrity ofinformation.

y Compliance with policies, plans and laws.

y Safeguarding assets.

y Efficient use of resources.

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Accomplishment ofgoals

y The components of a DRP that accountant consider mostimportant

y

Protection of accounting records is crucial, because theserecords are a critical input to the decisionmakingprocess.

y The other important components of a DRP are backups offinancial statements and backups of customer records,followed by vendor records, personnel records andinventory records. No clear pattern emerges indicating aprioritized approach to planning a disaster recoverysystem.

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Conclusion

y In current era a DRP plan for an organizationisconsidered to be the lifeline factor for the continuity of

an organization business process because if there is nodisaster recoveryplan the organization can fall fromsky to earth within seconds if any severe disasteroccurs.

y http://www.youtube.com/watch?v=nsFp6yc1nxA&feature=related

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