It is now July 2023, and Mr and Mrs Stitch have been very successful in growing their business. The business now stocks
Posted: Sat May 07, 2022 7:49 pm
It is now July 2023, and Mr and Mrs Stitch have been very
successful in growing their business. The business now stocks over
20 different inventory lines and employs six full-time staff.
As the business continues to grow, you strongly encourage Mr and
Mrs Stitch to review internal controls over cash receipts and cash
payments in the business, to safeguard the business’s money.
Mr and Mrs Stitch are not overly concerned, as they have never
had any issues with cash going missing or being stolen in the
past.
Required:
Undertake some research online, looking at cases of employee
fraud and/or supplier fraud in Australia. Prepare a letter to Mr
and Mrs Stitch - discussing the importance of internal controls,
and addressing the following:
i) Provide a brief overview of two recent cases of employee
and/or supplier fraud in Australia, explaining how money was stolen
from the business. Explain what internal controls could have been
implemented to reduce the risk of the fraud occurring. Include a
copy of an article relating each case with your letter (or provide
website links to the articles in your letter) for Mr and Mrs Stitch
to review. (6 marks)
ii) To help Mr and Mrs Stitch as they consider reviewing
internal controls, outline two internal controls over cash receipts
and two internal controls over cash payments that can be
implemented in the business (including in its Information
Technology (IT) environment) immediately. In your discussion,
explain how each of these controls helps to reduce the risk of
fraud or theft. (4 marks)
can you please provide this question answer as soon as
possible. Thank you.
successful in growing their business. The business now stocks over
20 different inventory lines and employs six full-time staff.
As the business continues to grow, you strongly encourage Mr and
Mrs Stitch to review internal controls over cash receipts and cash
payments in the business, to safeguard the business’s money.
Mr and Mrs Stitch are not overly concerned, as they have never
had any issues with cash going missing or being stolen in the
past.
Required:
Undertake some research online, looking at cases of employee
fraud and/or supplier fraud in Australia. Prepare a letter to Mr
and Mrs Stitch - discussing the importance of internal controls,
and addressing the following:
i) Provide a brief overview of two recent cases of employee
and/or supplier fraud in Australia, explaining how money was stolen
from the business. Explain what internal controls could have been
implemented to reduce the risk of the fraud occurring. Include a
copy of an article relating each case with your letter (or provide
website links to the articles in your letter) for Mr and Mrs Stitch
to review. (6 marks)
ii) To help Mr and Mrs Stitch as they consider reviewing
internal controls, outline two internal controls over cash receipts
and two internal controls over cash payments that can be
implemented in the business (including in its Information
Technology (IT) environment) immediately. In your discussion,
explain how each of these controls helps to reduce the risk of
fraud or theft. (4 marks)
can you please provide this question answer as soon as
possible. Thank you.