What role do financial or accounting packages play in avoiding fraud?
However, Oracle believes that a good accounting system, when judiciously implemented, can reduce the risk of improper accounting and increase the business transparency that all companies must now seek if they are to retain the trust of their shareholders. Here’s how: Control A simple way of reducing risk is to limit the number of people who define and apply business rules. If a CFO leaves it up to his company’s local finance directors to enforce local and group practices, the risks are quite significant. Companies understand this and usually have strict group policies that must be applied by local finance directors, and a regular internal audit makes sure this happens. Such policies are much easier to apply when a company that has one single central system, rather than a typical set-up of four or five regional systems or a host of individual local accounting systems. A centralised system will act as a watchdog, ensuring that global policies are applied, rather than relying on internal
