Accounting information system is like problem solver for those who work in accounting field. It is because with AIS the task such as purchase order, invoice, and payment invoice can perform with high speed and easy to do for most business. Even thought it can perform high speed and accuracy there still room for human error. The system will not catch the information or data that enter wrongly into the system. As for example, the amount of the payment invoice was enter $500 but the system doesn’t know that payment was actually $5000 and it was entered and wrongly paid by mistake. Error and fraud are still happen in accounting. As for that, internal controls are needed to prevent and detect risk. In business, there has more meaning of fraud such are intentional deception, asset misappropriation or financial data manipulation to the advantages of the perpetrator, white collar, defalcation and irregularities. Auditors also encounter two types of fraud which is employee fraud and management fraud. Employee’s fraud is generally designed to convert cash or other employee’s personal benefit while the other one is management fraud where the fraud does not involve direct theft and is more harmful.

As year ago, a general ledger, a list of account and transaction was kept in paper pads, manually maintained and also consuming time task for accountant. For example, if the balance sheet is not balance, there is something wrong and it took time for the accountant to find and solve the mistake. But these day with modern technology nowadays like using AIS where counting is handle automatically and the financial statement are compiled at the push of button. Accountants just have to correct the amount where mistake occur and it will automatically adjusted. Besides, the data coding in AIS is concisely represent large amount of complex information that would otherwise be unmanageable. It also provides accountability over transaction completeness and able to identified unique transaction and account within a file. These days, by using AIS, general ledger that contains general account and transaction, detail of transaction are often kept in separate module. Then this module will transferred to general ledger. As for example, the account payable module handles all issue regarding account payable including vendor names, invoice dates and other important data to the bill paying process. Whenever invoices are entered and paid, expenses, account payable and cash are recognised and it will transfer to general ledger.