ACC 760 (Fall 2022) - Team Project

Accounting Operations Plan, Fraud Risk Assessment and

Internal Controls Recommendations

Objective

Describe the operations and transaction cycles of a business.

Requirements

Prepare a report that describes the processes required to fully operationalize the business for the plan assigned to your team. Your report should include the following:

Description of the product/service.

A detailed description of the business including locations, headcount, and functional areas.

A detailed description of each transaction cycle applicable to the business. You should describe the types of transactions (e.g. sales) and how they will be processed through the accounting system (e.g. invoice will be prepared by the sales accountant and mailed to the customer). You must factor in the cost of setting up operations/departments For purposes of this project, you will have additional funding of $75,000.

Once you have set up operational cycles,

Identify all fraud risks (both internal and external) that this company might face. Internal risks should be identified by fraud scheme.

For each transaction cycle, recommend internal controls that would help mitigate the fraud risks you identified above. Controls should be linked with the transaction cycle being protected and should be described in detail (e.g. Separation of duties is too general what duties are being separated and who is responsible for what). Be sure to tailor your recommendations to this company rather than a data dump of everything discussed in the text and class.

Identify any other fraud prevention tools you would implement for this company.