ACC00718 - Accounting Information Systems: Fraud Prevention Analysis

This report examines fraud prevention and detection within accounting information systems, addressing two distinct scenarios. The first scenario involves a public company overpaying a promotions company due to inflated response numbers. The report identifies five procedures and checks, including thorough partner background checks, expert assistance from accounting professionals, embracing new technology for feedback systems, employee training on fraud awareness, and segregation of accounting duties, to reduce the risk of such fraud. The second scenario investigates excessive freight and travel expenses, where the report identifies detective internal controls, such as surprise cash counts, inventory checks, review of accounting work, enforcement of job descriptions, and internal audits. Furthermore, the report outlines five procedures that could have alerted the auditor to the fraud, including the presence of multiple bank accounts, comparing budgets with actual spending, segregation of accounting tasks, ambiguous accounts, and background checks on accounting department employees. These measures are designed to enhance financial integrity and prevent fraudulent activities.