Acct 562

Case Study This end is a re completelyy wide-cut workout of weak intimate controls. The main controls that lacked were supervision, segregation of duties. This fictional character explains how the internal controls are important and helps prevent the drool. The solutions given in the case are effective way to prevent the hypocrite; just these actions are needed to be cutn era the arrangement is in progress. In this case the Mr. Scott was the only head in charge of passing the bills to accounts pay qualified (AP) section and he was the person in charge of picking up those checks. Considering the coincidence one, it shows that federation had hired the internal auditor. Comp any didnt crap any type of internal control before the investigator was hired, or if the internal controls were in located they werent effective or were not closely monitored. It didnt take too desire to discover the travesty by an investigator. The AP section and the person respons ible for(p) to approve the bills that were submitted by vendors were double check or if they have some policy in placed they could have prevented the fraud. Mr. Scott was old(prenominal) with the system and knew the loop holes to work around it. Mr. Scott works there for 15 old age had a great moving-picture show that impart let everyone believe in the company that he cannot deputation the fraud.

He did a great job at keeping his impression that way, so that other employees and colleagues dont submit him questions or doubt him for the fraud. In these 15 years the fraud that has been committed by Mr. Scott is big and the amount that has been stolen is very material. fit in to the report to the nation 2010, 26% of all cash ! outlay fraud is direction fraud. What Mr. Scott did is a billing fraud. He submitted shape bills to payables and gets paid for it. He committed the fraud at a very advanced level. He utilise the original greenback and changed it through computer and made pseudo invoices, so flock who just looked at the invoice wouldnt be able to tell the difference,...If you want to get a full essay, tell apart it on our website: OrderEssay.net

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