Workflow Sample: Prevention of Accounting Fraud, Nothing else but "Automatic Recording"

It is reminiscent of "the Lehman collapse" which is referred to as "Lehman Shock" in Japan. I would call it "Toshiba shock".

To the Japanese people, Toshiba is famous for the sponsor of Sazae-san which holds the Guinness World Record for the longest running animated television series. Its sponsorship is over forty five years.

In such Toshiba, a major Accounting scandal has been revealed.

Many people would feel watching the press conference of the other day (July 21) on TV that it is organizational and malicious Accounting fraud. Investors around the world may be wondering what the "Audit Committee" has been doing, or what the "Accounting auditor" (auditing firm) has been doing, even in a Company with Committee. They have learned nothing at all from the lesson of "Kanebo scandal" or "Olympus scandal". They should rather dismantle the entire group and end the history of 140 years. Thereby, reorganization of the consumer electronics industry and heavy industrial industry of Japan would be promoted.

There is nothing better than the visualization of Business data to prevent "circular trade" or "aggregation fraud".

Fraud occurs because the Business Process is invisible, because business data in it is invisible... You should give the authority to be able to view the real-time business data in the Business Division, to the General managers and their superiors for example. To the executive officers and directors, for example, you should give the authority to browse the real-time business data of entire company. Nobody would even think about expressly falsifying "the documentation of the board of directors", if it was a mechanism of automatic recording the fact of "who when did what".

[Basic insiders flow of Quotes / Orders / Billing, etc.]

Of course, business contents or division of duties within the organization will be different depending on the company. "Business Flow Diagram", "Data Items", "Responsible Organization" which configure the Business Process, would be necessary to be modified at each department in each company. However, anyone will be capable of modification, as long as knowing the basic idea of "separation of execution and supervision" and "separation of Planning and implementation", etc.

Indeed, you might imagine a substantial mechanism when you hear the words like "radical overhaul of the internal control system". The first and the maximum step toward to prevent fraud is to create a mechanism that automatically record the business of its own departments.

[Basic insiders flow of Quotes / Orders / Billing, etc.:"1.Application" screen]