Internal Controls and the Accounting Information Systems

Accounting information system
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Institution/ Affiliation
Accounting information system
Money presents an opportunity for accounting fraud in many organizations. As the e-commerce industry is rapidly changing, new forms of fraud have become inevitable. It has become challenging to detect and prevent fraud amidst the increased integration of information systems and the growing amount of data. Therefore, it is imperative to audit an organization’s internal controls to ensure business operations comply with internal and external requirements - as traditional manual control procedures are quickly becoming ineffective or require highly specialized and scarce technical knowledge.
Internal controls play a vital role in ensuring the integrity of the financial and accounting system, preventing fraud, and promoting accountability. Moreover, internal controls help increase operational efficiency by improving the accuracy and timeliness of financial reporting. In the current accounting information systems, the data collected from these systems form the foundation of financial reporting and provide a valuable source for audit purposes (Werner & Gehrke, 2019). Nonetheless, traditional audit procedures are inadequate in discovering deficiencies in the current accounting information systems. Research shows that modern internal cont...