The Impact of Accounting Information Systems (AIS) on Fraud Detection

This paper examines whether fraudulent activities in financial statements have decreased with the use of computerized accounting information systems (CAIS) and what can be done by accounting information systems (AIS) to decrease fraud in financial statements. Studies show that using computerized accounting information systems do not decrease fraud each time because top management instead of lower level employees is the one who commits crimes. Although enterprise resource planning systems (ERP) provide controls such as segregation of duties, they may not be sufficient to detect fraud. Instead, data mining techniques such as neural networks, decision trees and Bayesian Belief Networks may be used.