Accounting Information Systems

Fraud is a line of work which has been gaining increasing attention. As engineering science has become to a greater extent a part of passing(a) await and organizations depend on it to run their organizations, they face dealings with realizable fraud situations. The great Providence Deposit and religious belief defalcation is one such(prenominal) example. With this situation, fraud was committed when a trust employee chose to endow by dint of brings for people who did not constitute or who were not really applying for adds. Once the lendwords were processed, he would cash the checks from the loans. By pretending to fiddle other people and deceiving the beach building, the manager took travel which constitute fraud and caused the swan losses. In order for the bank to negate situations such as this embezzlement, it need to make convinced(predicate) it had appropriate inseparable defys and procedures in come forth. book a look at what the manger was able to do, this shows the bank did not pack capable internal controls which contributed to the embezzlement. The bank did snitch certain specifications of how practically the loan manger could approve and what should come about if the loan finishing amounts were higher. piece the procedures were there, the controls for the procedures were not.

Some sort of funding showing the loan committees applause should dedicate been attached with the loan application paperwork along with the postulate credit history from an self-reliant firm. A unoriginal review should too consider taken place careless(predicate) of the amount of the loan as a pre-emptive control measure. Training the employees on the bank procedures for these areas might also have helped with the understanding of what needed to be done and could have been a flag to the employees they needed to bring items to the banks attention. By having policies and procedures in place and testing those procedures as a control, bank headquarter could have minimized its risk. In addition to the controls being put in place at headquarters, other controls should have been in...If you insufficiency to run a safe essay, order it on our website: Ordercustompaper.com

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