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INDIVIDUAL ASSIGNMENTACCOUNTING INFORMATION SYSTEMSNAME:NUR AZMINA BINTI MAZLAN ANUARNO ID: B201101058COURSE CODE: BACT3313LECTURERS NAME: SIR MOHAMAD NOR BIN HARON
2Question 1a)Two kinds of fraud in business are fraudulent financial reporting and misappropriation ofassets. Fraudulent financial reporting is linked to management fraud since it involves an on-purpose conduct that can lead to materially misleading financial statements. For example, inorder to increase profits, an employee may report revenue even if the client has notcompleted any transactions in order to provide a more positive financial picture of thecompany. This sort of fraud can also involve misrepresentation of assets, misrepresentationof liability, and misrepresentation of revenue. Misappropriation of assets, on the other hand,involves employees abusing their positions and authority to steal from the company throughfraudulent behavior, and it may also be referred to as the theft of a company's assets. Forexample, an employee could apply cash receipts to a different customer's account to hideearlier cash receipt thefts. Skimming, lapping, payroll theft, and inventory theft are examplesof this type of fraud.b)Two tools that can help the companies to reduce losses from fraud by develop specialsoftware of fraud detectionin the company’soperation. This will allow the company to keeptrack ofcompany’stransaction activity and prevent employees from committing fraud. Next,make a backup plan in case of fraud. This will assist the company in being prepared soonerand having a remedy in place for any crisis that may arise that can cause a company problem.Question 2a)A general ledger and reporting system is the process of maintaining general ledger accountsand preparing reports that summarize the results of thecompany’s activities. Four basicactivities involved in the general ledger and reporting system are update the general ledger,post adjusting entries, prepare financial statements and also produce the managerial reports.b)Making an error when updating the general ledger or creating a report is the initial threat inthe general ledger and reporting system. It happens frequently because updating the generalledger require the completion of various documents, all of which have an influence on thegenerated report and may lead to incorrect judgments based on inaccurate information.Therefore, reconciliations and control reports may be used to ensure that clearing andsuspense accounts have zero balances, as well as comparing balances in control accounts tototals of subsidiary accounts.The second threat is loss, alteration, or unauthorized disclosure of data in general ledger andreporting system. It has become a serious problem since recovering it may be difficult, and itmay result in the exposure of personal information, allowing anybody to read and edit it. Itcan be kept under control by making at least one backup of the general ledger and putting inplace access and security restrictions such user IDs, passwords, and logs of all actions, as wellas having particular authorizations.

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Term
Summer
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gperiasamy
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