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In: Accounting

a) Internal controls play an important role in reducing the risks of fraudulent activities in any...

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.

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Answer-a-

The advanced technology transaction processing system can actually help in reducing the fraud in a company in many ways. The ways through which it can be beneficial in reducing the same are:

1. By storing the data in an effective manner having the complete records of the transactions undertaken stored effectively where no duplication risk or fraud attached to itself could happen.

2. The transaction processing system is having an inbuilt backup and the recovery system in itself. These are implemented in the processing system so the data is never lost and a backup is created for every time new transcations or changes happen in the system.

3. Also, this high tech advanced technology transaction processing system can also be accessed and controlled though authorised people abd users only. Thus, high protection and security is offered by these systems whenever a person wishes to access or even modify the same transactions

ekkarill92 answered 1 year ago
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