Procedures to Reduce Risk in Accounting Information Systems

ACCOUNTING INFORMATION SYSTEMS 1
Accounting Information Systems
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ACCOUNTING INFORMATION SYSTEMS 2
{1} Identify five (5) procedures and checks that would have reduced the
risk to the victim company?
Know your business partners
This means that before an organization engages in any business partnership,
there should be deep research of the other individual or business. Through this, the
company can be able to gain the trust of transacting with the chosen individual or
business. If the affected company would have engaged in the background
information of their marketing partners they would have gained some knowledge of
the past performance of the company (Shanmugam, Haat and Ali, 2012, p.88). Moreover
knowing your partners also helps in building a healthy relationship whereby no one
will go against the terms agreed upon or provide false information for material gain
over the other party.
Get expert assistance
A company will require getting the best auditing as well as accounting
professionals; through this, the company will be able to have peace of mind on
every transaction which will be conducted as skilled professionals are always guided
by their code of conduct. Through hiring an expert the company can be able to
detect fraud at the initial stages and be able to address it before it incurs a loss
(Wasserblat and Lubowich, NICE Ltd, 2012, p.562). Professionalism spirit through the
hiring of the most proficient and skilled will also set a warning to the corrupt and
wipe away the spirit of misconduct in the company transactions.
Embrace new technology

ACCOUNTING INFORMATION SYSTEMS 3
As technology is expanding and changing over the years it is advisable for
companies to embrace the incoming technology in all the operations. Through this,
the company can introduce an electronic response system where the customers
through the help of the marketers will be able to fill in their feedback and then the
feedback gets sent directly to one server (Hoffmann and Birnbrich, 2012, pp.390-407).
Through this, the company will be able to fight the inflated response rate by the
marketers and hence reduce overpaying for services which were not offered.
Training employees to prevent fraud
Those employees who are working g in fraud-prone areas and department in
the company should be trained. Through training, the company will have defended
its self from fraud cases. Moreover, the employees should be taught of the warning
signs of fraud as well as the consequences. More so the company can set an
anonymous system of reporting where every worker will be the watchdog of others
(Shanmugam, Haat and Ali, 2012, p.88). Through this, the company will be able to avoid
risks of paying for goods and services which were not delivered or offered and at
the same time be aware of the workers who engage in corrupt practices.
Segregation of accounting duties
A company may choose to segregate their business operations in the
accounting department thr0ough introducing a hierarchical means of funds
approval. If a company gives the responsibility of raising a request and approving
the money to two people or three the chances of fraud will be high hence the
company can form a hierarchy for approving every payment that will be made to
the suppliers and other stakeholders of the company. Through this poor payment
and verification of marketers respondent reports (Wasserblat and Lubowich, NICE Ltd,