What is the red-tape in accounting information system?

Answer 1

Red tape is the symbol for the hoops you have to jump through, the paperwork you have to fill out, and the things you have to do in order to get help from or business done with the federal bureaucracy. Some people restrict the definition a little more--they would only call something red tape if it is actually a useless procedure.

It's a tough choice government (and business) always has to make. You can decide that it isn't worth it for the government to spend so much time making records and tracking everything it spends money on, because it costs so much money to do that, and often stalls the individuals or companies trying to work with the government. The problem is that if you cut out all the red tape, there is no way to track how it was spent and whether someone ripped of the government.

Just like with every business, the government has to decide how much time and money they want to waste to ensure that people who steal from them get caught. People are usually most critical when the paperwork or red tape is useless and doesn't prove what it set out to do, or when it is impossible to get around. Examples would be requiring a license that is not available (impossible), or one that anyone can have just by signing their name (useless).