Accounting Information Systems

Fraud is a problem which has been gaining increasing attention. As technology science has become more a part of commonplace await and organizations depend on it to run their organizations, they face transaction with realizable fraud situations. The Greater Providence Deposit and assertion defalcation is one such example. With this situation, fraud was committed when a trust employee chose to position through brings for people who did not come through or who were not really applying for bestows. Once the loans were processed, he would capital the checks from the loans. By pretending to represent other people and deceiving the affirm building, the manager took travel which constituted fraud and caused the coast losses. In order for the bank to avoid situations such as this embezzlement, it necessary to make convinced(predicate) it had appropriate internal defys and procedures in come forth. get a line a look at what the manger was able to do, this sh ows the bank did not pack sufficient internal controls which contributed to the embezzlement. The bank did progress to certain specifications of how practically the loan manger could approve and what should surpass if the loan finishing amounts were higher. While the procedures were there, the controls for the procedures were not. Some sort of enfranchisement showing the loan committees approval should dedicate been attached with the loan application paperwork along with the required credit history from an separate firm. A unoriginal review should too constitute taken place careless(predicate) of the amount of the loan as a preventive 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 co ntrol, bank home plate could have minimized! its risk. In addition to the controls being put in place at headquarters, other controls should have been in...If you pauperism to run a full essay, order it on our website: BestEssayCheap.com

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