Procedures to Reduce Risk in Accounting Information System

ACCOUNTING INFORMATION SYSTEM 1
Accounting Information System
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ACCOUNTING INFORMATION SYSTEM 2
{1} Identify five (5) procedures and checks that would have reduced the risk to the victim
company?
Live the corporate culture
The first procedure which would have been used by the affected company against
overpaying its marketers as a result of inflated marketing response reports, is by living according
to the corporate culture and also setting a good example. Through the provision of work-friendly
environment workers as well as promoters can be easily prevented to be involved in theft and
fraud. A clear organizational structure, policies, and procedures which are clearly outlined and
fair policy of employment would have reduced the financial fraud the occurred in the affected
company (Bachenheimer, Kemesa Inc, 2013, p.747). Moreover, the company could have adopted
an open door policy which would have protected the fraud due to unrestricted communication.
Hiring experts
The second procedure to avoid such frauds as in the affected company case, hiring
experts can be the best alternative. Experts in the field of marketing and data analysis would
have saved the situation of the company. Moreover, the company could also hire one or two
certified fraud examiners who can be of great help in the detection of fraud as well as in setting
up anti-fraud policies and procedures (Kovács and David, 2016, pp.148-157). The hired experts
can also provide a wide range of services to the company such as a complete audit on internal
controls, basic consultations as well as forensic analysis.
Monitoring of vocational balances

ACCOUNTING INFORMATION SYSTEM 3
Some employees take advantage of loyalty and never miss out of office day after day all
through the whole year. As this can be viewed as an act of loyalty this can also be an act of fear
whereby an employee fears that in cases where someone replaces his vacancy during vacation a
fraud may be detected. Hence it is always good for a company to consider the varying vocational
balances and make sure that there is an equal balance in the term that all the employees go on
vacations (Gil and Goldstraw-White, 2010, pp.100-119). In addition, it is good to embrace
employee rotational method over a period of time.
Proper documentation
Documentation is one of the best internal control which when monitored can help a
company to avoid fraud. The report received from the marketers is supposed to be well
documented and a comparison made on the past and the recent documents. Moreover, through
the documentation, a review committee can be introduced to help during the counterchecking to
identify cases of forgery in the invoiced number of respondents report (Kovács and David, 2016,
pp.148-157). Furthermore, electronic data protection and storage software can be introduced in
the company to ensure that the company can find all relevant materials in cases of fraud
detection or during an audit.
Embracing technology
Moreover, with the improved technology advancement, the company can opt an
electronic feedback system which can be used by the respondents to feed all the required detail
and sent directly to the server (Gil and Goldstraw-White, 2010, pp.100-119). Through this, the
company will have avoided forgery of documents and also introduced a reliable measure to
reduce fraud and other crimes.