THERE IS GENERAL AGREEMENT THAT COMPUTER ABUSE IS A MAJOR PHENOMENON TODAY AND THAT A SIGNIFICANT AMOUNT OF FRAUD AND EMBEZZLEMENT GO UNDETECTED. THERE ARE FOUR CATEGORIES OF COMPUTER ABUSE: (1) MANIPULATION OF COMPUTER ACCOUNTS NOT INVOLVING MISAPPROPRIATION OF MONEY, (2) MISAPPROPRIATION OF GOODS, SERVICES, OR MONEY MAKING USE OF THE COMPUTER SYSTEM, (3) MISAPPROPRIATION OF EMPLOYERS' COMPUTER-BASED INFORMATION AND DISPOSAL FOR GAIN, AND (4) MANIPULATION OF EQUIPMENT OR SYSTEMS TO PLACE THE ORGANIZATION AT SOME KIND OF DISADVANTAGE. VARIOUS METHODS OF CONTROL ARE SUGGESTED. THE FIRST SUGGESTION IS TO CAREFULLY CHOOSE PERSONNEL AND POSITIONS OF RESPONSIBILITY SHOULD ONLY BE FILLED AFTER A CAREFUL CHECK OF REFERENCES AND THOROUGH PERSONALITY TESTING. IT IS ALSO SUGGESTED THAT TECHNICAL KNOWLEDGE OF COMPUTER SYSTEMS BE RESTRICTED WHEREVER POSSIBLE AND THAT SENSITIVE MATTER SHOULD BE DISCLOSED STRICTLY ON A 'NEED TO KNOW' BASIS. AT TIMES FRAUD TAKES THE FORM OF THE PRODUCTION OF INCORRECT OUTPUT OR A DELAY IN PROCESSING. TO PREVENT THIS, A SECURE LOCATION, A RELIABLE AND FLEXIBLE INSTALLATION WITH RESTRICTED ACCESS, TRUSTWORTHY STAFF, AND WELL-TESTED STANDBY ARRANGEMENTS ARE NECESSARY. TO PREVENT INPUT ABUSE, CONTROLS SHOULD BE TIGHTENED OVER THE GENERATION AND FLOW OF INPUT TRANSACTIONS. IN ADDITION, IT IS SUGGESTED THAT EFFECTIVE CONTROLS OVER THE DATA BANK BE EXERCISED. INTERNAL AUDITS ARE ALSO SUGGESTED FOR CONTROL OF COMPUTER ABUSE. AUDIT ENQUIRY PACKAGES ARE RECOMMENDED TO ASSIST THE AUDITOR IN CHECKING THE ACCOUNTING RECORDS. TABLES AND LIST OF REFERENCES ARE PROVIDED. (MLC)