The Impact of Computerized Accounting Information System on the Fraud Prevention in Retail Businesses in a City

Over the years, the manual-based system of accounting has been gradually replaced by the computerized accounting information system (AIS). This technological shift has enabled thousands of businesses to obtain more benefits such as speed and accuracy of data entry and improved work performance. However, with all the advantages and benefits of AIS, the use of a computerized AIS has also led to multiple incidences of fraud (PwC, 2018). This research study investigated the use of computerized AIS and its relative impact on the fraud prevention in ten (10) retail businesses in a highly-urbanized city. The study adopted a quantitative descriptive research design and employed a combination of printed questionnaires and a web based survey tool in collecting data. The results were analyzed and interpreted using descriptive statistics such as frequency count, rank, percentage, weighted mean, and multiple regression analysis model. Analysis of findings revealed that the components of AIS are effective as to its utilization. However, in spite of being effective in performing various tasks, it was found that only AIS data and software components have significant impact on preventing certain types of fraud such as customer fraud and vendor fraud. It is recommended that the retail businesses should adapt to the changing needs of the business environment and commit to improving the current status of their computerized AIS.