Case 1: Fraud Detection and Prevention at a Garden Center
BUS FPX 4068 Assessment 2 Jacob Kent, the general manager of a big garden store in Columbus, oversees an operation that is multi-department with multiple control processes to manage cash receipts. Recent alarm, though, over possible schemes of check fraud within the organization has been raised by the fact that a returned check came as non-Alien funds. Under such circumstances, one has to consider the potential fraud schemes and put in place control procedures to identify and avert fraudulent transactions. Besides, process analysis of stores can determine the employees who can be involved in such schemes.
Possible Check Fraud Schemes and Control Processes:
• Check change: Employees can substitute the check received from customers, substitute the payment or amount.
• Check fraud: Employees can sign the check or execute counterfeit checks.
• Check kitting: Workers may gain from time lag in the check processing within the treatment to allow false balance.
• Including actions:
• Separation of duties: Multiple tasks may stop collusion for cash handling, make deposits and include accounts.
• Mandatory PIN entry: Unique PIN entry for every transaction raises accountability.
• Regular reconciliation: The sales report, the deposit slip and the bank statement may spot regular harmony deviations.
• Employee training: Educating at-risk employees and results can encourage moral conduct.
Identifying Employees at Risk:
•Department head and treasurer: Workers who are in charge of dealing with cash and making deposits are in an excellent state for fraud.
• Seller: You can exploit their access to the records by entering the PIN code for transactions.
• Managing Director: Though there are no possibilities, GM’s managerial role entails that they must be also vigilant against fraudulent practices.
Case 2: Financial Reporting Integrity at the Keel Company
Finance directors at Kail Company encounter moral and accounting issues after the company’s Heather Locard, a loss of earnings, and a shift in the ownership arrangement. Herein, she goes through several options for stable earnings, and queries GAAP Sami and Accounting.
BUS FPX 4068 Assessment 2 Case Studies
Acceptability under GAAP:
Percentage of completion rises: It is a violation of the GAAP if not established on the basis of the precise estimates of the project completion.
• Recognize revenue on standard contracts: Recognition of income is a violation of GAAP in advance without the adequate collateral for collection.
• Mark-to-market accounts: Accounting method changes are acceptable if clear and based on the GAAP principles are made.
Financial Statements Fraud:
• Options 1 and 2 Potential accounts can form fraud from fraud if the company’s financial health is used to deliberately confuse stakeholders.
Recommended Course of Action:
• Follow GAAP principles: Maintain integrity in financial reporting by following installed accounting standards.
• Communicate effectively: Communicate the company’s financial position transparent for stakeholders including new trustees.
• Seek alternative solutions: given long-term stability, seek alternative solutions that align with moral and legal requirements.
Case 3: SOX 404 Compliance for a Biomedical Company
A small biomedical firm, which intends to go public, is grappling with the issue of securing SOX 404 contains with a mere three employees including the whole management team.
Feasibility of SOX 404 Compliance:
• Irrespective of size, the firm can acquire SOX 404 contaminaries through the proper internal control and management frameworks.
General Steps for Compliance:
•Set up internal control: Implement robust internal control for financial reporting, such as duties and papers of procedures.
• Management structure: Increase the board with independent board members possessing relevant expertise.
• External audit: Affiliate external auditors to review compliance and ensure stakeholders.
Lastly, every case highlights the significance of moral conduct, adheres to regulatory guidelines, and implementation and financial reporting of successful checks for safeguarding against fraud guarantee integrity.
References
Contract security. (Raw.). Understand the risk of open source software [white book]. Https://www.contrastsecurity.com/hubfs/undrstand- arsiss_whitepaper_0420_final_final_final_final.pdf?, From%20 may ponants,
William, H., George Y., and J., L. (2011). Forensic accounts and fraudulent (second edition). MacGra-Hil Learning Solutions. Https://capella.vitalsource.com/Books/1260492990
Centhaorinichicago. (2022, February 8). How to calculate the beverages restaurant. HTS
