An Important Problem That Every Business Owner Has Dealt With. Fraud

Depending on the severity of the fraud, the appropriate response can be different from firm to firm. A good way to detect fraud would be to listen to information provided by a disgruntled employee. This holds true unless the employee was disgruntled before the fraud occurred. The information will probably be false and misleading because the employee has held animosity for a while. Regardless, you should take the information seriously when it is first presented to you.

Based on your scenario, recommend one (1) control that would prevent or detect your fraud. Support your recommendation with examples.

The government should try to find a better way to detect fraud and start preventing it, especially since it has

Getting an internal auditor into the government office was a great move on their part. We can now move forward in this case as we have established that fraud is taking place. The next steps that could be made it to pay close attention to the employees. Any suspicious behavior, such as a sudden eager to work till late at night, or even noticing bad habits like gambling or drug problems could lead someone to steal. Another way to aid against fraud is to control and intensify the paper trail. Make it difficult to be able to get away with cash without recording it and clearing it with someone

Cash is such an important current asset to a business, especially for the every day running of it, so ready access to cash is crucial. Therefore, every company must utilize safeguards to protect and manage their cash. An alarming statistic in one of The National Restaurant Association’s (NRA) reports shows that employee theft cost $8.5B to its members in 2007 – the equivalent of 4% of food sales. Furthermore, only 10% of employees do not commit fraud in any situation, while 5% do commit fraud, and the other 85% will actually consider

I’d suggest to her to have her employees trained for the prevention and detection of fraud and give her the important internal control needed to prevent and detect fraud. The preventive control would be to have segregation of duties or dual custody to ensure that everything is accurately recorded and presented, another is she should implement a system of authorization to verify all transactions, inflows and outflows of cash, are recorded properly and have physical safeguards and not have one employee have unlimited access to everything as this will probably lead to theft and manipulation of data. For her detective controls, the organization should have independent checks to see if there is any suspicious activities or information found within the company and lastly, she must have documents and records of everything as this will be used as evidence when fraud is detected. (Albrecht et. al 2014, p.

Fraud is a pervasive and omnipresent threat in the modern business environment. While the controls to help mitigate the risk have become increasingly sophisticated, so too have the methods in which employees, managers and even third parties defraud victim entities. While some industries seem more at risk than others it is important to recognize the vulnerability that is common to all of them. One industry that seems to be able to avoid the worst of fraudulent acts is the Transportation Industry. Through use of time tested control methods and avant-garde procedures to help mitigate business risk, the industry is able to consistently place ahead of others in rates of fraud occurrences.

There are various forms of cash fraud. One of the common schemes is cash larceny. Cash larceny refers to employees intentionally taking away cash from their employer without the employer’s knowledge and consent (Wells, 2014). Employees who have direct access to cash are more likely to commit cash larceny (Wells, 2014). Cash larceny is more likely to occur if there are weak internal controls in an organization. Weak internal controls make it difficult to prevent and detect an occurrence of fraud. This paper seeks to evaluate a recent case of cash larceny by a former employee at Glen Aubrey Fire Company.

The second preventive method Daniel's touches on is still based on background, but this one is more like continuing process. People change sometimes, the same employee that was hired a year ago might not be the same employee a year later. A person behavior don't always remain constant and no one knows really knows what an employees might be involved in outside of work. Thus, firms should perform a background check when promoted within, especially when employees play a bigger role than they used. The third and final preventive method Daniel talks about is audit. As mentioned in the case, management and board members are often more trusting. Most of financial fraud that firms encountered are cause by board members and upper level management, such as the infamous case that occurred in 2001 Dennis Kozlowski, the former CEO of Tyco International Ltd., and former Tyco finance chief Mark Swartz “were sentenced up to 25 years in prison for stealing hundreds of millions of dollars from the company.” After the infamous Enron and WorldCom scandal, all publicly traded company are required to audit by an independent auditor and issue their financial statement well. All of the three methods Daniel provided

Some industry-specific factors, such as having valuable near-cash assets, can increase the organization's vulnerability. Also they will need to rationalize the actions as justifiable. The individuals committing the fraud must first convince themselves that their behavior is acceptable or will be temporary. For example, Barry Minkow’s believed that the lies and deceit are for the betterment of his company and that with time everything will eventually return to normal.

Fraudulent, erroneous, and illegal acts committed by a public company, usually at a managerial or executive level, have been a very serious problem for many years and have prompted development of strict and updated regulations, such as the Sarbanes-Oxley Act, in an attempt to prevent these occurrences. Unfortunately, these new or updated regulations are not enough to prevent these acts from happening, thus not alleviating the auditors of their responsibility to detect fraud. Some methods that management and auditors can employ to prevent and detect fraud, errors, and illegal acts are: improving knowledge, improving skills,

Combating fraud in the private sector is a difficult task. Trying to combat fraud in the public sector is daunting. In 1999 15.7% of the American workforce were employed by a government entity (federal, state, and local).[1] Mirroring society, government will have its share of perpetrators. The difference from the private sector is in the scope of the fraud committed, the loss of the public trust, the blaring headlines from news media, and difficulty in making necessary changes to combat the problems.

Recommendations For Measures or Actions That Chief Information Officers (CIOs) or Chief Technology Officers (CTOs) Might Mandate to Reduce Fraud and Other Unethical Practices While Protecting the Reputation of the Organization and the Infrastructures of Computer Systems ………..……………………………………………….………….….7

Another way that might prevent employee theft is through surveillance. In the early 1990's Long John Silver's Restaurants, Inc. installed surveillance cameras in their stores after having a history of internal losses. The cameras proved to work during one of many instances. One instance included a young cashier who had stolen over eighty dollars in less than two hours while working at the Long John Silver's drive-through window. Unfortunately for her, in the ceiling, over the drive-through register, a surveillance system had recorded her every move.

A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud