Overview
Scenario
You are a fraud examiner for Locktight, an accounting firm that helps small businesses implement internal and fraud prevention methods. You recently reviewed a client’s internal control structure and found several areas for improvement. The client’s management couldn’t find the organizational chart and approval guidelines for hiring employees, selecting vendors, and disbursing checks. Additionally, there is one person responsible for initiating and approving new vendors and check disbursements for accounts payable and payroll. The client has no internal audit department to provide oversight or monitor financial transactions.
Your manager has asked you to write a blog post for Locktight’s customer-facing website discussing internal controls and fraud prevention methods that organizations can implement to avoid similar situations.
The skills practiced in this activity will help to support you in your project.
Directions
Write a blog post that describes potential fraud prevention methods.
Specifically, you must address the following rubric criteria:
Describe internal controls that can help the organization mitigate fraud.
Explain how internal control activities can strengthen the organization’s fraud prevention program.
Evaluate various fraud prevention methods that the organization can implement.
What to Submit
Submit your activity as a 1- to 2-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.