Norman Grill Fraud

What steps should management, the Board of Directors, or the Audit Committee of the Board of Directors take in response to allegations of possible fraud or illegal acts?

Read the David Miller case from Chapter 5. After reading the case, describe a reason why someone who has been entrusted with the firm’s assets would commit a fraudulent act against the company. Based upon your understanding of the case and your professional and personal experience, recommend a series of actions that should have been taken in order to pre

Professional auditing standards discuss the three key “conditions” that are typically present when a financial fraud occurs and identify a lengthy list of “fraud risk factors.”

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

They are dangerous to some people that seem to be at the wrong place wrong time. They have some unique history. The future is just an as scary because of what they want to see happen. One of the big things that happen with them was during a routine stop in West Memphis, Ark by two police officers in 2010. Jerry Kane was stop with his 16 old sin Joseph. Jerry was doing speeches all across the country about sovereign citizen movement. A little bit after the stop the son stepped out of the car with an AK-47, opening firing on both officers and killing them both. A major manhunt was on looking for them both and it took about 2 hours to find them. When the police found them a second shootout accord with more officers getting injured but both father and son were killed during the shootout. Some other things the associations also commits are numerous fraud cases causing the people and gov’t lot money. There has been fraudulent insurance scheme. Selling state insurance and only paying out small claims. The company collects millions of dollars. Another one was selling phony diplomatic credentials telling the buyers that this document will give them full diplomatic immunity in U.S. They made from anywhere from $200 to $4000 per each one sold. Also been cases where police officers and F.B.I. agent switched sides and help commit fraud to join the sovereign citizens’ movement. This group has a website where you can learn about and read their point of view. Learn how to fight the government. How to become a family member to them or just donate to the cause. Have all types

The final step in financial control is training your people. Everyone must be prepared to identify any irregular behavior. This behavior is not just with regards to the bookkeeping, but individuals whom are displaying signs of unexplained wealth, extreme changes in demeanor, or financial hardship, could be potential threats to the financial health of the organization because of illegal behavior or a propensity to such behavior. An anonymous whistle-blower program can help to provide employees with a way to report suspected colleagues for suspicious behavior without a fear of retaliation (Clevenger, 2009).

There are various procedures that could be taken in to account that would, if properly implemented, would have detected the frauds that occurred within the companies. There are many control risks that should have been taking regarding inventory along with preliminary audit strategies for the inventory and substantive test to be done that would have raised many flags during the typical audits as well as in depth ones.

Hooper Holmes was founded in 1899 under the name “The National Insurance Information Bureau” by William DeMattos Hooper and Bayard P. Holmes. During this time, information was not readily available and the founders sought to provide more transparency to protect consumers from insurance fraud. Hooper Holmes created a “Casualty Index” to help process the claims of other companies and mitigate the risk of fraud.

Square, Inc. is a financial services company based in San Francisco, California and they market software and hardware payment products. Square was founded in 2009 and launched their services in 2010. The Square Reader was the first product they ever released and it's a convenient way

Donald Trump’s is a con artist who resembles his own university; he scams people out of their money, and his whole campaign is a scam. Trump lied to people on live TV saying that his university got an A approval rating by the Better Business Bureau. However, that is a lie; the last time they rated his university was in 2010 and they gave it a D-. Furthermore, Trump University shut down in 2011 and now Trump has many lawsuits that have been filed against his university for fraud. The people that paid to attend Trump University never actually met Trump even though they were promised. The closest any of the students got was taking a picture with a cardboard cutout of Trump. Trump scammed people between $20,000 and $60,000; but if Trump continually

First and foremost, the accounting system used should be updated. The case stated that the system was 30 years old and that prior accounting period transactions could not be locked down, which enabled internal control processes to be bypassed. Enhancing internal

Wendy's, the fast food chain retailer is investigating reports regarding a potential breach of their credit card systems in their restaurants. The have hired a security expert to look into it. Wendy’s received information from associated payment industry contacts. They made them aware of unusual activity and fraudulent charges after credit/debit cards were used at their restaurants.

Asset misappropriation in corporate America is so normal, however this fraud plot isn't new the spate of its event in the most recent decade involves grave worry to administration, speculators and workers. Resource misappropriation plans include workers, ordinarily in conspiracy with a few individuals from administration who contribute in abrogating and covering the plan. Therefore, it goes on for just about 10 years before a watchful individual from administration identifies it. This report surveys a benefit misappropriation fraud executed by Miss Sujata "Sue" Sachdeva, its Chief Financial Officer in the vicinity of 1997 and 2009, assess the elements that added to the misappropriation and decide if any administration omissions or insufficiencies

143). Nearly all individuals and organizations are subject to pressure and rationalization of actions, the risk of fraud is great if internal controls are non-existent or can be overridden. It is vital to look-out for indicators that signal weakness in internal control environment. Opportunities exist for fraud due to role of process owners in the structure of internal control and the ability to avoid or override the existing controls (Golden, Skalak & Clayton, 2006 p. 134). Lack of sound corporate governance functions such as inadequacy in the extent and effectiveness of supervision by independent functions are al signals of fraud as it’s a demonstration of weak control environment. The control environment includes the continuity and effectiveness of internal audit, information technology, and accounting personnel as well as the effectiveness of accounting and reporting systems (Golden, Skalak & Clayton, 2006 p. 134). When such deficiencies are not managed or disciplinary actions put in place to check such weaknesses or override of controls, it may signal potential red

Over the past two years, corporate America has endured a plethora of fraudulent acts committed by those of high status within their respective corporations, most of which involve internal fraud. Internal fraud has two main aspects, misappropriation of assets and fraudulent financial reporting, with the focus of this discussion lying within the former. Misappropriation of assets is defined as fraud for personal gain. It is the most common type of fraud found among employees and frequently includes theft of cash and inventory.