Accounting Information System

Accou
nting Information System 1
ACCOUNTING INFORMATION SYSTEM
By [Name]
Name of the school (Course)
Professor’s Name
Name of the University
Name of the city/ state
Date

Accou
nting Information System 2
Scenario A
These are the five procedures as well as checks that would reduce risks to
victim companies
The company would have practiced Authorization of the whole promotion
procedures, instead of the company only using promoters from the
promotion company, it would have also involved its employees in the
processes whereby it would have set defined responsibilities, adherence
mechanisms, and roles for these individuals as they are working hand in
hand with the promotion company. This would have helped the company to
be assured that the activities carried out by the assigned company are
appropriate (American Institute of Certified Public Accountants 2014).
The victimized company was supposed to carry out performance reviews,
performance analysis, or review makes a comparison between the planned
or expected outcomes with the actual results. If there is a big difference,
thus, the promotion company have to be summoned. Before the promotion
procedures, there was the need of the company to set the needed number of
customers, and these numbers are compared to the ones collected by the
promotion company. The company, before payments, would have first
accessed the numbers.

Accou
nting Information System 3
The public company should have a plan for processing and accessing
information collected from research. Unluckily, the company let the data
obtained by the promotion company be kept by themselves, which shows
that the company does not have proper information and data processing
procedures. A system with better control of data should have all events well
recorded, data should be accurate, and have general supervision over the
information
The company would have segregated duties among different companies, to
avoid fraud by untruthful companies, big companies should avoid passing
roles and task to one company, I other words, they should divide the job to
compare the outcomes quickly.
The company was supposed to have physical controls; physical controls
refers to those controls placed in place to safeguard the resources of the
Organization. The company would use labor from the promotion company,
but the rest of the materials would have been for it, this makes it easy to
track the whole process used in the transactions.
Scenario B
Question 1
The internal control which could have prevented fraud, as well as five
examples of the internal control, are: