ACCOUNTING INFORMATION SYSTEM 1 ACCOUNTING INFORMATION SYSTEM.

ACCOUNTING INFORMATION SYSTEM 1
ACCOUNTING INFORMATION SYSTEM
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ACCOUNTING INFORMATION SYSTEM 4
ACCOUNTING INFORMATION SYSTEM
Scenario A
1) Identify five (5) procedures and checks that would have reduced the risk to the
victim company?
The Australian Public company ought to have followed the blow five procedures. It
should have known the promotions company well by visiting the customer reviews and
comments section among others. Secondly, it should have communicated fraud risk policy to
possibly alert the promotions company that they are watching against fraud. The third procedure
was to implement internal controls that deter fraud such as documenting the number of
customers reached through promotion and their verifiable contacts. The next procedure was to
carry out monitoring and lastly the Australian company could hire experts qualified to examine
fraud (Munsif, Raghunandan and Rama 2012).
Scenario B
1) Identify and discuss which internal control could have prevented this fraud and
give five (5) examples
The American company should have used the COSO internal control framework. It
ensures that the risk of intentionally or unintentionally misrepresenting financial figures are
avoided (Hoitash and Johnstone 2012). For example, risk assessment, effective internal
environment, control activities, effective information and communication and monitoring.