The executive Assistant (EA) to the president of a home improvement company used a corporate credit...

 

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The executive Assistant (EA) to the president of a home improvement company used a corporate credit card, gift checks, and an online payment account to embezzle $1.05 million in less than 3 years. The EA arranged hotel and airline reservation and coordinate activities for the sales team. He was also responsible for reviewing the corporate credit card bills and authorizing payment. When the EA realized that no one looks at the charges on the corporate credit card, he began making personal purchases with the corporate credit card. The EA used the money to buy a very expensive red BMW and expensive watches, and to fund an investment account. Required: a. List the internal control weaknesses in home improvement company procedures. (7%) b. For each weakness that you have identified, recommend a mitigation(s)/control(s) in accordance with the COSO ERM framework. (7%) The executive Assistant (EA) to the president of a home improvement company used a corporate credit card, gift checks, and an online payment account to embezzle $1.05 million in less than 3 years. The EA arranged hotel and airline reservation and coordinate activities for the sales team. He was also responsible for reviewing the corporate credit card bills and authorizing payment. When the EA realized that no one looks at the charges on the corporate credit card, he began making personal purchases with the corporate credit card. The EA used the money to buy a very expensive red BMW and expensive watches, and to fund an investment account. Required: a. List the internal control weaknesses in home improvement company procedures. (7%) b. For each weakness that you have identified, recommend a mitigation(s)/control(s) in accordance with the COSO ERM framework. (7%)

Answer rating: 100% (QA)

a Internal Control Weaknesses 1 Lack of Segregation of Duties The EA had control over arranging rese... View the full answer