Question: The assistant finance director for the city of Tustin California
The assistant finance director for the city of Tustin, California, was fired after city officials discovered that she had used her access to city computers to cancel her daughter’s $300 water bill. An investigation revealed that she had embezzled a large sum of money from Tustin in this manner over a long period. She was able to conceal the embezzlement for so long because the amount embezzled always fell within a 2% error factor used by the city’s internal auditors. What weaknesses existed in the audit approach? How could the audit plan be improved? What internal control weaknesses were present in the system? Should Tustin’s internal auditors have discovered this fraud earlier?
Relevant QuestionsLou Goble, an internal auditor for a large manufacturing enterprise, received an anonymous note from an assembly-line operator who has worked at the company’s West Coast factory for the past 15 years. The note indicated ...As an internal auditor, you have been assigned to evaluate the controls and operation of acomputer payroll system. To test the computer systems and programs, you submit independentlycreated test transactions with regular ...The fixed-asset master file at Thermo-Bond includes the following data items:Asset number ......... Date of retirement (99/99/2099 for assets still in service)Description .......... Depreciation method codeType code ...Invoiceless pricing has been adopted by some large businesses for B2B transactions. What are the barriers, if any, to its use in B2C commerce?Parktown Medical Center, Inc. is a small health care provider owned by a publicly held corporation. It employs seven salaried physicians, ten nurses, three support staff, and three clerical workers. The clerical workers ...
Post your question