Overview
1. Auditing
(400 per DB post) (APA format)
(No use of Artificial Intelligence) (No Plagiarism)
You are the auditor for Office Supply, which is opening a new location next week. The store manager has established all the controls you recommended for ensuring that sales are recorded properly, and cash is accounted for. The manager has heard from other locations that employees often used returned goods as a means of skimming money from the register. Choose one of the following questions to discuss:
- How might an employee use returned goods to skim money from the register?
2. Auditing
(300 per DB reply ) (APA format)
(No use of Artificial Intelligence) (No Plagiarism)
Hope Almaraz
Dec 18 9:57pm| Last reply Dec 21 6:04pm
Reply from Hope Almaraz
Hello Class,
Fraud is an unavoidable aspect of business; however, when controls and audits fail to account for a clear shortfall, the result can be an insurmountable loss. In the case of Office Supply, the store manager has confirmed from other locations that skimming money from returned goods is a common method employees use to commit fraud. To determine how to prevent this activity from occurring in their store, the manager must first consider how the fraudulent activity is taking place. As employees are accepting returned goods from customers, they may be understating the funds that they are returning to customers and pocketing the rest, or they may be misidentifying the returned goods to return the incorrect value to the customer while they retain the excess that would be due for a separate product. The result is a reputational risk if or when a customer reviews the transaction and determines they have been shortchanged, or a loss of revenue created by product value becoming misaligned with funds returned to customers. The manager should monitor revenue and returns closely to prevent this known instance of fraud.
Thank you!
3. Auditing
(300 per DB reply ) (APA format)
(No use of Artificial Intelligence) (No Plagiarism)
Timothy Fell
Dec 18 8:45pm| Last reply Dec 21 2:54pm
Reply from Timothy Fell
Hello all,
Fraud can hit your company in many different ways and for many different reasons, no company is guaranteed to be completely safe from fraud but there are many different actions a company can take to help mitigate or lessen the chances of fraud.
For me I would recommend that the manager take a close look at the controls as they play a pivotal part in making sure that the structure of the company is set up in a way that is non fraudulent. When it comes to cash I would recommend that there are separation of duties so that the company can ensure that the person that is taking in money from vendors and or customers and depositing it is not the same one that is in charge of Accounts Payable and paying the bills for the company as this can easily be manipulated if someone wanted to short paying an invoice or report less money taken in. Another key aspect would be to make sure that you have good controls on the Payroll setup and the the person you have running that has someone that is reviewing the payrolls every time they are being ran. As someone that works at a smaller non-profit there are times when you can be short staffed and have the need to have someone doing multiple jobs but the key is that you have approval processes that go through multiple supervisors and even multiple departments to make sure that the information and data is correct and is being performed accurately.
Thank you,
Tim