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Accounting Information Systems - Assignment Example

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Accounting Information Systems
Answer 1
Air New Zealand is a domestic and international airline company. It is one of the famous airline companies based in New Zealand. This airline group provides cargo transport services and air passenger services. …
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Accounting Information Systems

Download file to see previous pages... Air New Zealand has also has diversification in aircraft engineering and ground handling services of airlines. Apart from it won services it also provides these two services to other domestic as well as international companies. Subsidiaries of this group also offer online ticket booking services, retailing and travel wholesaling services. Vision of the company is that it strives to become number airlines company in terms of customer satisfaction of services in every country where it provides services (Air New Zealand, 2012). The company is dedicated to become customers’ first choice of airlines for travelling to within and from New Zealand. The company has developed a competitive advantage in terms of creativity and innovation in its services quality. The company promotes the domestic culture, people, behaviors and quality of business practice to the overseas people. It also has a long term value i.e. growth company and contribution a major percentage to the domestic countries growth. The company has been awarded Airline of the year in 2010 and 2012 and it also achieved many national international awards for its quality services. According to company’s financial report of 2010, it has total assets of NZ$1,566 million and profit of NZ$82 million. Accounting information systems of the company refers to the efficient use information technology to management of company’s operating activities and recoding of daily financials transactions and information. Company provides high priority to its Accounting information systems as it maintains the company’s accounting and financial information and update daily basis. AIS help the company to operate accounting and financial management efficiently and easily. As AIS has higher involvement of information technology and computers systems, network, internet etc so there is higher possibility that the company could be exposed to computer fraud and abuse in many ways (Sori, 2009, p.36). There are some general types of threat related to accounting information systems of the company. Terrorist attack and natural deserter in New Zealand and other operating countries are considered as macroeconomic threats to the company’s information systems. Other micro environmental threats are malfunction of hardwires software errors, human unintentional manual errors, and lastly the most dangerous intentional acts or computer crimes. Now fraud refers to intentional unethical and unfair business practice by organizations or individual or groups. Supplier of product and services to this company might gain unethical interest or benefits over the company. Any individual within the organization may commit fraudulent activities intentionally for his or her individual interests. In efficient asset management through absence of internal control systems leads to theft of company’s valuable assets. Another affective type is fraudulent reporting of financial statements. Accounting information systems has given high priority and focus by the company to protect any fraudulent activities regarding financial reporting which is quarterly or yearly result of daily accounting records and maintenance and updating ethically and fairly representation of that. The company could be exposed to any type of fraudulent financial reporting due to some common reasons that leads to unethical business practice by the company. Presence of deceive creditors or suppliers, or investors might be the reason one reason. Another way of reporting fraudulent financial statements can be done by increasing the current market of share of the company. Third reason might be to collect investment to sufficient cash inflow to the ...Download file to see next pagesRead More
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