ACC 564 Assignment 3 Fraud in the AIS
An effective accounting information system is a key factor in protecting organizations from embezzlement or fraud. The accounting information system should be designed and used as a control tool preventing theft internally or externally. Unfortunately, a case of theft or the accounting information system fails to prevent embezzlement, happens often. The failure of an accounting information system occurs due to a flaw in the controls of the system or manipulation of the system by an internal user. According to estimates of the Association of Certified Fraud Examiners, the average company loses seven percent of its revenues to fraud, although much of this fraud involves external parties, such as shoplifting by customers and cheating by suppliers (Arens el al., 2010).
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