Case Study

As disclosed in a reports, about event occurred at National X company is regular of the forms of employee extortion that happens throughout each day at various associations. it absolutely was nothing too complicated and exhibited however insiders United Nations agency apprehend the eccentricities of contrastive conditions utilize their insight for his or her own sweetening.

A Financial Manager of the National X company took advantage his knowledge that its must in nonprofits receiving federal grants to pay back any unused cash. This cash should paid directly to the federal department. Company, the financial manager created bank account at a state capital bank under name very similar to the federal department name. For over two years he had clinic workers return these checks, which he deposited into this account that he actually owned

He allegedly started many accounts with names almost like vendors. The financial manager had payments meant for these vendors be sent to his dummy companies and later paid a similar check.

These plans started in June2010 then went over two years. Following the irregularities were discovered and examined, the financial manager was terminated, and the case,was turned over to prosecutors.

Because white-collar crime is occasionally prosecuted.

He faced four years in prison and pay back taxes and fines.

Question1:- Evaluate deeply all shortage in the internal control of National X Company and provide recommendations to avoid such corruption and fraud?

Payroll accountant recorded a 60 hour work for an employee who had terminated from his job last week. He then prepared a paycheck for this employee, forged the check signing, and cashed it for himself.

Question 2:- Explain how the principle of separation of duties is violated in each of the following situations?

Question 3:-Explain the four ways that management can use to respond to risk. Provide an example for each of them?