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Security of data and information has always been a concern for business organizations. With recent trends towards down‐sizing and the implementation of Local Area Networks, the necessity for the development of carefully formulated policies and procedures for data security has taken on a new emphasis. Auditors are responsible for the verification of security measures, as well as recommending corrective actions or proper measures when risks and exposures are found. The authors provide an overview of the important security considerations, identify threats common to the data and information managed by the organization, and recommend procedures to effectively secure the Local Area Network.

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