Integrating Audit Trail Technology in Cash Accounting Systems: Implications for Fraud Prevention and Financial Reporting Effectiveness

Namira Novadilla; Abdul Gani; Minasari Nasution; Khairatunnazah; Amin Hou; Sabaruddin Chaniago

doi:10.64276/ams.v1i4.102

Authors

Namira Novadilla Politeknik Unggul LP3M
Abdul Gani Politeknik Unggul LP3M
Minasari Nasution Politeknik Unggul LP3M
Khairatunnazah Politeknik Unggul LP3M
Amin Hou Universitas Mahkota Tricom Unggul https://orcid.org/0009-0001-8433-2330
Sabaruddin Chaniago Universitas Pembinaan Masyarakat Indonesia https://orcid.org/0009-0000-2743-9097

DOI:

https://doi.org/10.64276/ams.v1i4.102

Keywords:

Cash Accounting System, Technology, Fraud, Financial Reports, Governance

Abstract

This study investigates the role of a technology-based cash accounting system in preventing fraud and improving financial reporting quality at the Regional Water Company (PDAM) of Aceh Tamiang Regency. A qualitative descriptive approach was employed, with data collected through observation, in-depth interviews, and documentation. The data were analyzed using thematic analysis to obtain a comprehensive understanding of system implementation in financial management practices.The findings reveal that the implementation of a technology-based cash accounting system significantly contributes to fraud prevention through enhanced transaction transparency and traceability. The digital audit trail feature enables systematic recording of financial activities, thereby strengthening accountability and facilitating continuous monitoring. However, the study also identifies that human factors remain a critical risk, particularly related to potential misuse of access authority and internal control weaknesses. This indicates that technological systems alone are insufficient without strong governance and supervision mechanisms. Furthermore, the system improves the efficiency and accuracy of financial reporting. Automated integration between transaction recording and accounting modules accelerates the reporting process, reduces human error, and enhances the reliability of financial statements. Compared to manual systems, financial reconciliation becomes more effective and aligned with applicable accounting standards. From a managerial perspective, this study implies that PDAM management should strengthen internal control systems by enforcing strict access rights, routine system audits, and continuous monitoring of user activity. Training programs are also necessary to improve employee competence in utilizing accounting technology effectively and ethically. In addition, management should ensure that technological adoption is accompanied by organizational policies that reinforce transparency and accountability

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