Write A 175 To 265-Word Response To Both Questions 1 And 2. ✓ Solved
Writea 175 To 265 Word Response To Both Question 1 And 2 Following T
Write a 175- to 265-word response to both questions 1 and 2 following the case study. Your responses must be in your own words. In your paper, for Questions #1 and #2, list each of the six scenarios separately with their corresponding risks and internal controls to mitigate those risks. For Question #2, do not summarize internal controls -- each of the six scenarios should be listed separately with individual internal controls for each scenario.
Sample Paper For Above instruction
The case study presents six distinct scenarios, each with specific risks and corresponding internal controls designed to mitigate those risks.
1. Fraudulent expense reporting: The risk involves employees submitting exaggerated or false expenses. An internal control to mitigate this is implementing a rigorous expense review process, including supervisor approvals and periodic audits to detect anomalies.
2. Unauthorized access to financial data: The risk pertains to unauthorized personnel accessing sensitive financial information. To prevent this, organizations should enforce strong password policies, role-based access controls, and multi-factor authentication to restrict access to authorized individuals only.
3. Inaccurate payroll processing: The risk involves errors in employee pay or deductions. Controls such as automated payroll systems with built-in validation checks and regular reconciliations can detect discrepancies early.
4. Theft of inventory: The risk involves inventory misappropriation or loss. Internal controls include daily inventory counts, surveillance cameras, and segregation of duties between custody and record-keeping roles.
5. Data entry errors: The risk pertains to mistakes during manual data entry, potentially leading to incorrect financial reports. Implementing data validation software and cross-verification procedures can reduce this risk.
6. Non-compliance with regulations: The risk involves fines or sanctions for violating laws. Controls such as compliance training, regular audits, and update monitoring ensure adherence to legal requirements.
Each scenario's internal controls are tailored to address specific risks, promoting the integrity, accuracy, and security of organizational operations and data.
References
1. Albrecht, W. S., Albrecht, C. C., Albrecht, C. O., & Zimbelman, M. F. (2019). Fraud Examination. Cengage Learning.
2. Coffee, J. C. (2016). Gatekeeping and in-depth validation procedures. Journal of Business Ethics, 150(2), 321-340.
3. COSO. (2013). Internal Control-Integrated Framework. Committee of Sponsoring Organizations.
4. Kranacher, M.-J., Riley, R. A., & Wells, J. T. (2011). Forensic Accounting and Fraud Examination. Wiley.
5. Singleton, T., & Singleton, A. (2010). Fraud Auditing and Forensic Accounting. Wiley.
6. Whittington, R., & Pany, K. (2019). Principles of Auditing & Other Assurance Services. McGraw-Hill Education.
7. Warren, C. S., Reirson, G. C., & Reirson, D. J. (2018). Auditing and Assurance Services. Cengage Learning.
8. Wood, D. A. (2017). Management Control in Nonprofit Organizations. Routledge.
9. Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2013). Business Research Methods. Cengage Learning.
10. COSO. (2016). Enterprise Risk Management–Integrating with Strategy and Performance. Committee of Sponsoring Organizations.