a) Internal controls play an important role in reducing the risks of fraudulent activities in any organization. Further, advanced technology helps accountants in reducing fraud. Explain how an advanced technology transaction processing system reduces fraudulent activities from any organizing. b) Refer to the given system flowchart, and we have discussed the control weakness and the risk associated with these control weaknesses. Based on these control weaknesses and the associated risk, what types of frauds are possible in this business environment. Sales Department Accounting Department Warehouse Shipping Department Slock Release Packing Packing Customer Sales Order Release Packing Customer Order Reconcle Packing sip and Sales order, send Camier Record in Shipping AR Sub Ledge Pick Goods Update Inventory send goods Shipping Bi Customer Approves cred, prepare Update Accounts Inventory Sub ledger Sales documents Shipping Log AR Control Sales Order Stock Release Packing Sip Sales Stock Order Involce Sales Order Slock Release Packing Sip Carier Packing Sip Biling Department Sales Invoice Add prices and tas B Customer and Jounal record Sale Sales Invoice Customer

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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a) Internal controls play an important role in reducing the risks of fraudulent activities in any
organization. Further, advanced technology helps accountants in reducing fraud. Explain
how an advanced technology transaction processing system reduces fraudulent activities
from any organizing.
b) Refer to the given system flowchart, and we have discussed the control weakness and the
risk associated with these control weaknesses. Based on these control weaknesses and
the associated risk, what types of frauds are possible in this business environment.
Sales Department
Accounting Department
Warehouse
Shipping Department
Slock
Release
Packing
Packing
Customer
Sales
Order
Release
Packing
Customer
Order
Reconcle
Packing sip and
Sales order, send
Camier
Record in Shipping
AR Sub
Ledge
Pick Goods
Update
Inventory
send goods
Shipping
Bi Customer
Approves
cred, prepare
Update
Accounts
Inventory
Sub ledger
Sales
documents
Shipping
Log
AR
Control
Sales
Order
Stock
Release
Packing
Sip
Sales
Stock
Order
Involce
Sales
Order
Slock
Release
Packing
Sip
Carier
Packing
Sip
Biling Department
Sales
Invoice
Add prices and
tas B
Customer and
Jounal
record Sale
Sales
Invoice
Customer
Transcribed Image Text:a) Internal controls play an important role in reducing the risks of fraudulent activities in any organization. Further, advanced technology helps accountants in reducing fraud. Explain how an advanced technology transaction processing system reduces fraudulent activities from any organizing. b) Refer to the given system flowchart, and we have discussed the control weakness and the risk associated with these control weaknesses. Based on these control weaknesses and the associated risk, what types of frauds are possible in this business environment. Sales Department Accounting Department Warehouse Shipping Department Slock Release Packing Packing Customer Sales Order Release Packing Customer Order Reconcle Packing sip and Sales order, send Camier Record in Shipping AR Sub Ledge Pick Goods Update Inventory send goods Shipping Bi Customer Approves cred, prepare Update Accounts Inventory Sub ledger Sales documents Shipping Log AR Control Sales Order Stock Release Packing Sip Sales Stock Order Involce Sales Order Slock Release Packing Sip Carier Packing Sip Biling Department Sales Invoice Add prices and tas B Customer and Jounal record Sale Sales Invoice Customer
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