Question: Your report should be based on internal control activities related to the sales and collection cycle. The design of an effective system of internal control
Your report should be based on internal control activities related to the sales and collection cycle. The design of an effective system of internal control does not necessarily ensure the accomplishment of managerial objectives. Management has to ensure its functionality. Identify and explain the potential fraud symptoms (including behavioral) in this case. In what ways does the fraud triangle explain how the symptoms occurred? Identify and explain the weaknesses in the sales and collection cycle observed by Mrs. Lee in the restaurant incident. In what ways do you think fraud occurred? Propose three possible internal control activities to strengthen the identified weaknesses. Explain how each activity could help to deter fraud
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