1. Identify areas where internal controls are weak over personnel, assets, and accounting functions....

Question

1. Identify areas where internal controls are weak over personnel, assets, and accounting functions. Identify personnel in positions to exploit those weaknesses.

Preeta · Accepted Answer

In the given case, the following frauds can be identified:
· Fraud in Revenue from Ticket Sale:-
The possibilities remain that although Ben Hill keep the ticket ledger and cash at the designated place yet after everyone leaves he steal some part of the money and also alter the ticket ledger along with that to adjust for the stolen money. Then he submits that ticket ledger and cash to Michelle. 
Differences have been found between the notebooks of Myrna and the ticket ledger submitted by been to Michelle. This is a very common type of fraud (Albrecht et al., 2011). The mismatch reveals the fraud committed by Ben. It can also be assumed that Ben charge the differential amount of ticket proceeds to Jessica Keller’s account. 
· Fraud in Employee Payroll:
When Game Day Employee Time Sheet was compared to the Payroll Summary, it was found that there was difference of $180 for each month. When enquiry was made with ADP of payroll services, he provided with a detailed payroll summary. Only a summary used to be  submit by Ben to Michelle.

1. Identify areas where internal controls are weak over personnel, assets, and accounting functions. Identify personnel in positions to exploit those weaknesses.

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment