FRAUD AND ITS CONTROL IN A COMPUTERISED ACCOUNTING ENVIRONMENT


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FRAUD AND ITS CONTROL IN A COMPUTERISED ACCOUNTING ENVIRONMENT

PROJECT TOPICS AND MATERIALS ON FRAUD AND ITS CONTROL IN A COMPUTERISED ACCOUNTING ENVIRONMENT


CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

In the business environment people have different kind of task to perform and computer can help with most these tasks because they can work faster with information more than humans. They can also solve complicated problem without stopping and they also make teller mistake than humans as a result of this, most business personnel used computer system to do the work. 

However, computer can be also perform more function, such as logical operation e.g. additions, subjection division and multiplication. Computer can also be used to assess information from the interest and it can be used to store information, editing words etc. Due to the usefulness of computer business owners’ organization, and individuals depend on computers mostly in their daily activities and also the first device was as ABACUS and used by the “Babylon as” around 300BC.

The first printing press was completed in approximately 1440. It’s clear that modern advance in technology have been for time. However the electronic computer that we know today have evolved from a combination of electric development Sway programming and other influences.

German  (1937), created the very first program and electric binary machine which help to jump and start the modern computer

This way a State University inverted the first digital computer in early 1940’s and also in 1985, modern computer giant dell introduced the very first computer known as the Turbo PC.

Likewise, Steve Roziniak designed the first Apple computer. Therefore, computer crime usually occurs as a result of the following:

(1).    National phenomenon

(2).    Accident.

(3).    Mistakes.

1.2     Statement of the Problem  

One of the objective of this study is to investigate fraud and it control in computerized accounting environment. Improving the quality of financial record and reporting practices has been widely known to be of major benefit to be derived with the aid of computers in the world of today.

 

 

 

 

1.3     Research Questions      

(i).    Do you think that management policy can effect the level of fraud positively?

(ii)     Is fraud easier in a computerized environment than manual environment?

(iii)    Is there any effective system of internal control in your organization?

1.4     Objective of the Study

The objective of this research work can be divided into two parts, primary objective and secondary objectives. The primary objective is to fixed out the practical means to minimize as well as to control fraud in a computerized accounting environment, the secondary objective are follows:

(1)     To identify the causes of fraud in a computerized accounting environment.

(2)     To determine the magnitude and frequency of in a computerized environment.

(3)     To determine the effect of frau on business organization

(4)     To recommend measures rendering the incidence by computer fraud.

(5).    To identify the various type of fraud perpetuated with computer.

(6)     To determined the adequacy of control techniques being used by the business organization.

1.5     Statement of Hypotheses

In order to achieve the objective of the study, the following hypothesis have been formulated:

(1)     Fraud is easier in a computerized accounting environment than manual accounting environment.

(2).    Effective management policy can affect the level fraud?

1.6     Scope of the Study

Computer has now become commonly applied in business organization, ministries, hospitals, finance houses and the government. All are fully aware of these activities and as result of this, we can be the scope of this study on the financial department (Bursary) of Auchi Polytechnic, Auchi.

1.7     Significant Of the Study

The significance of this project work is to reveal the effect of computer fraud in business organization by using a computerized accounting system.

The effect include the high liquidation of the business organization, high level risk that most of the business owners are also expose to and the effect it have Nigeria economic.

The purpose of informing management business owners, accountant and auditor on how to detect such fraud is mutually beneficial to the to the parties involved. Basically the significant of this research is adverting management business owners, accountant and auditor on various loopholes in a computerized accounting environment.

 1.8    Limitation of the Study

(i)      Lack of qualified Trained personnel to mount the computerized accounting system.

(ii)     Sample size of the population i.e. Auchi Polytechnic, Auchi. Data limitation with reference to Bursary department ICT Units.

(iii)    Lack of back up- files and poor audit department.

(vi)    Fight of software, equipment data and online interception.

1.9     Operational Definition of Terms

Accountant:- This is a person who keeps record of financial matter in an organization.

Business:- This is the ability of making, buying, selling or supplying thing for money, which include goods and service.

Circuiting:- This is a systematic of electrical circuit.

Device:- This device means something  that is invented or adopted.

Electronic:- This is the principal place of business of an individual a group of people.

Equipment:- These are things that are needed for a purpose

Fraudulent:- Doing thing in a deceitful way

Frequency:- This is the date of occurrence of an event or something.

Generation:- One stage  in developing sequence, born from the last and giving birth to the first.

Loophole:- A mistake is a way sometimes is being done LSI (Large Seale integrated circuiting): This is a type integrated circuiting in which many thing transistor are part on a chip and each chip can do.  

Liquidation:- This is the stage of being bank  up.

 Magnitude:-  This is the degree of importance of a thing.

Memory:- That part of the computer that store information instrument.

Perpetuation:- This is the act  of committing crime.

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In the business environment people have different kind of task to perform and computer can help with most these tasks because they can work faster with information more than humans. They can also solve complicated problem without stopping and they also make teller mistake than humans as a result of this, most business personnel used computer system to do the work... business administration project topics

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