The article draws attention to the problem of fraud in the accounting profession. The author refers to the issues and potential of Accounting Information Systems (AIS), particularly Blockchain technology, to detect and prevent fraud in corrupted public companies (Boylan & Hull, 2022). The article is rather expository than analytical or descriptive and mainly uses data from external sources and research, which shows that fraud prevention is nearly impossible to prove. The article does not have any significant background. For instance, there are articles stating how each AIS system works and how it can benefit a company, but they are separate from the research question of if an AIS system can detect or prevent fraudulent activity. The lack of data and research relevant to Blockchain technology creates a limit on this research. Blockchain technology is the only technology that could have accepted the alternative hypothesis. However, Blockchain is still advancing and was discovered in recent years.
Notably, the author appeals to recent research by Gettry Marcus titled Fraud statistics, which shows weaknesses in internal controls across various companies. According to Boylan (2022), citing Hutchinson, internal controls are the most effective way to prevent fraudulent activity. The author further highlights Enterprise Resource Planning (ERP) and Blockchain as critical technologies that can help detect fraud. However, for the above systems to be correctly implemented, appropriate infrastructure must be put in place.
The article by Boylan possesses interest, first of all, for investors and shareholders who own companies and want to make sure their operations are established at a high level. In particular, the data introduced in the article may facilitate a better understanding of the validity of financial statements. Furthermore, AIS is important to inform investors of potential risks, losses, and profits (Al-Nsour et al.,2021). Stated succinctly, the article is a statistical extract, which does not seem to be connected to recent events in the American economy—at least, there is no background mentioned in the article. However, what is remarkable about this article is the language in which it has been written. Boylan managed to present insipid statistical data in an easy-to-read manner, diluting the material with quotations from insiders and explaining complicated terms simply. In other words, the author’s professionalism makes the article unique among simple news stories.
Bitcoin Pyramid Schemes Wreak Havoc on Brazil’s ‘New Egypt’
In April 2021, Brazilian Federal Police raided the helipad of a beachside hotel in Rio de Janeiro state. They ended up arresting two men and a woman loading a chopper with the equivalent of US$1.3 million in neatly wrapped banknotes (Jeantet, 2022). The prisoners informed police they worked for GAS Consulting & Technology; a cryptocurrency investment business created by a former waiter-turned-multimillionaire who is said to be the primary player in one of Brazil’s largest-ever pyramid schemes.
Dos Santos is accused of orchestrating a complex scheme that defrauded hundreds of small-scale investors who thought they were becoming wealthy off bitcoin’s rapid rise. A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors (Zhang et al., 202). He is presently held in a Rio de Janeiro jail awaiting trial on allegations including racketeering, financial crimes, and ordering the murder and attempted murder of two business opponents.
This article finds relevance to business people, particularly to investors. It provides insightful information on business transactions and deals. Precisely, it is an eye-opener to shareholders that informs them of the importance of clearly undertaking research. Furthermore, the arrest of Dos Santos serves as a warning to any person who intends to undertake such business.
References
Al-Nsour, E., Weshah, S., & Dahiyat, A. (2021). Cloud accounting information systems: Threats and advantages. Accounting, 7(4), 875-882. Web.
Boylan, D. H., & Hull, J. E. (2022). Have Accounting Information Systems significantly helped in detecting fraudulent activities in accounting?The Journal of Applied Business and Economics, 24(3), 45-56. Web.
Jeantet, D. (2022). Bitcoin pyramid schemes wreak havoc on Brazil’s ‘New Egypt’. AP NEWS. Web.
Zhang, Y., Yu, W., Li, Z., Raza, S., & Cao, H. (2021). Detecting Ethereum Ponzi schemes based on improved LightGBM algorithm. IEEE Transactions on Computational Social Systems, 9(2), 624–637. Web.