Accounting Information System 6

ACCOUNTING INFORMATION SYSTEM 1
Accounting Information System
Name
Professor
Institution
Submission Date

ACCOUNTING INFORMATION SYSTEM 2
Scenario “A”
{1}
Documentation
The first procedure that would have enabled the company to avoid fraud is through the
introduction of an archive store for all documents. Documentation provides a reference whenever
they are required (Bachenheimer, Kemesa Inc, 2013, p.747). Moreover, the documents which are
stored can be used to track the trend of the company marketing response.
Duty segregation
This is a second check that could have enabled the company to avoid fraud. The
segregation of various duties to different employees is one of the ways to avoid or track fraud.
The bank reconciler should not be the check signer; moreover, the cash at hand spending should
also be regulated and approved by more than one person (Ramos, 2013, pp.28-37).
Embracing new technology
Such technologies include the use of camera and video recorders. Through this, the
company can be able to verify all the provided response and compare it with the real evidence
provided in the field videos or pictures.
Hiring the experts
A company can also be able to stop and avoid fraud through the acquisition of the best
professionals, through this the conflict of interest among other threats of accounting will be
avoided and also a role model and the pace of the company will be shaped according to the
behavior of those mandated to lead others (Gill and Goldstraw-White, 2010, pp.100-119).

ACCOUNTING INFORMATION SYSTEM 3
Know your partners
Finally, another very important factor is gaining confidence in a business partner. This
can be easily achieved through performing a background check as well as the historical
background of an individual or a company before engaging them through this due diligence will
provide peace of mind to the company or warn the company.
Scenario “B”
{2}
Detective internal control would have worked better for the company in the case study
this is because if the controls were put in place before, the company wouldn’t have experienced a
loss due to the mismanagement and lack of duty segregation (Kovács and David, 2016., pp.148-
157). Example of detective internal controls which would have saved the company is;
Internal audit, through the reports and concerns raised by an internal auditor the
company, could have been able to prevent the fraud case and also manage its bank accounts
properly (Ramos, 2013, pp.28-37). Moreover, most of the corrupt employees could have been
chased away from work.
Surprise inventory taking, more so a surprise stock taking is one of a detective internal
control. This is because through it stock misused or resold is easily identified and also it keeps
the storekeeper on toes hence reducing cases of fraud (Gill and Goldstraw-White, 2010, pp.100-
119).
Surprise cash count; this is necessary mostly where most of the transactions are paid by
cash. Through surprise cash count missing money can be easily detected and questions regarding