An AIS impacts potential fraud risk by automating processes that would otherwise be manually intensive, increasing accuracy. However, it also introduces new risks if not properly monitored: Methods to Prevent Fraud: Implementing real-time monitoring, segregation of duties, regular audits, and employee training can mitigate fraud risk. Unintentional Errors: System updates and functionality tests are vital to prevent data entry errors or system faults that could lead to financial misstatements