Concealing Fraud Investigations and evaluating security There are some key points to think about when concealing a fraud investigation. One main point is if there is a whistle blower involved this person’s identity must be protected. The whistle blowers information can be a very valuable if managed correctly. I would also keep the number of individuals that now about the investigation at a bare minimum. This will greatly reduce the risk of evidence being destroyed because of a leak.
A culture with strong ethical standards and code of conduct stemming from top management is key to preventing fraud; it is also cost-efficient to implement as a control. d. Audit Committee While not as cost-efficient as the other controls listed, there should be an audit committee appointed by the Board. It would be in charge of all financial oversight within the organization. For smaller organizations, they can attempt to recruit professional accountants to volunteer their time for the organization; in exchange, these accountants would be increasing their own reputation as well. Larger organizations might consider appointing an audit firm to audit their statements.
Lastly, we will summarize the information presented with a synopsis of what internal control measures are recommended. Ultimately, LBJ wants to go public in the future and to do so the company must have strong internal accounting controls in place and utilized. LJB Company: Internal Controls Report. Per LBJ’s request, this report has been created to provide your organization with the tools necessary to implement a solid internal control accounting procedure system. Internal controls are extremely important accounting practices that help ensure the safety of your business from fraud and clerical errors.
Having an indelible ink check printing machine will follow control activities stage of internal controls, because this piece of equipment will help to reduce the chance of fraud. There seems to be a good control environment within LJB Company; the president takes an active role in showing that integrity and unethical activities are not acceptable. The president is also aware of events within the company, and stays on top of his responsibilities. 3. There are a variety of things that LJB Company could improve upon.
Internal Controls XACC/280 October 7, 2012 Vaunda Davis Internal Controls Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. Internal Controls are needed to ensure the proper account of revenue under the guidelines of GAAP .These controls are aimed at ensuring compliance with revenue recognition guidelines and safeguarding assets against theft and unauthorized use, acquisition, or disposal is also part of internal control. There are six principles of internal controls. These control principles establish responsibility, using physical, mechanical, and electronic controls; segregate duties, and perform independent internal
Were payroll costs outpacing profits? Was there a rise in product theft due to shoplifting or vandalism? While all of these are causes for concern, Company Q only states that they closed the stores due to decreased revenues. In seeking to prevent lost monies, Company Q apparently forgot that those who could be considered stakeholders weren’t just Company Q’s owners or board of
BUSINESS CONTINUITY The purpose of a business continuity plan is to counteract interruptions to business activities and to protect critical business processes from the effects of major and long term failures of information systems or physical disaster to the work place and to resume a normal working fashion in a timely manner. A business continuity management process will be established to minimize the impact on Department of Homeland Security and recover from loss of information and physical assets to an with the use of preventive and recovery
Growth within the company – not having an embedded culture within an organisation will be detrimental to the growth of any company. Drive to grow can mean employee focus is lost and the essential upskilling of new employees is either, poor or not carried out. This lack of induction could see an increase in mistakes as the employee is unable to carry out their job correctly. Staff morale will be affected from both new and existing employees; new employees will not feel valued, uncertain, and anxious and existing staff will be angry and resentful, as they will have to rectify any errors made. 1.1 2 external factors which can impact of the employment relationship: Employment legislation is the legal criteria that employers have to adhere to, to ensure the employee is treated fairly and protected within their working environment/life.
With these in place, Verizon covers many areas where unethical situations could arise. I believe that they do have a strong group who oversees these areas to avoid unethical practices. Verizon’s delegation of authority helps to eliminate conflicts of interest by having internal and outside audits done to avoid this type of situation. The chief information officer watches to ensure correct choices are made in purchasing IT equipment. They would make sure the best choice for the company is made and not what might benefit some members of upper management.
For instance when above rules are followed business operation is correct and employees are avoiding dangerous situations which may affect their health and safety. It is important that everyone knows how to deal with risky situations for example to not to use faulty equipment and to inform management when repairs need action. Security of the business is also important so employers know that crucial information doesn’t leak and company work is protected. Suppliers and vendors working with the company are also assured that they cooperate with the safe company therefore their business relation is kept on the highest standards. 3.