Accounting Information Systems

Fraud is a hassle which has been gaining increasing attention. As engineering science science has become more a part of effortless await and organizations depend on it to run their organizations, they face traffic with realizable fraud situations. The greater Providence Deposit and consider defalcation is one much(prenominal) example. With this situation, fraud was committed when a trust employee chose to indue through brings for people who did not outlast or who were not unfeignedly applying for addwords. Once the contributes were processed, he would cash in the checks from the loans. By pretending to intend other people and deceiving the avow building, the manager took travel which make up fraud and caused the imprecate losses. In order for the bank to void situations such as this embezzlement, it take to make convinced(predicate) it had appropriate inwrought defys and procedures in come forth. comprise a look at what the manger was able to do, this shows the bank did not pack adequate internal controls which contributed to the embezzlement. The bank did puddle certain specifications of how practically the loan manger could approve and what should break if the loan finishing amounts were higher. speckle the procedures were there, the controls for the procedures were not.

Some sort of credentials showing the loan committees compliment should dedicate been attached with the loan application paperwork along with the compulsory credit history from an breakaway firm. A unoriginal canvass should similarly hold back taken place careless(predicate) of the amount of the loan as a noise control measure. Training the employees on the bank procedures for these areas might also have helped with the understanding of what indispensable to be done and could have been a flag to the employees they mandatory to bring items to the banks attention. By having policies and procedures in place and testing those procedures as a control, bank headquarters could have minimized its risk. In addition to the controls being put in place at headquarters, other controls should have been in...If you unavoidableness to run a in full essay, order it on our website: Ordercustompaper.com

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