Accounting Information Systems

Fraud is a problem which has been gaining increasing attention. As engineering science has become more a part of chance(a) await and organizations depend on it to run their organizations, they face dealing with realizable fraud situations. The Greater Providence Deposit and corporate trust defalcation is one such example. With this situation, fraud was committed when a trust employee chose to gift through brings for people who did not outlast or who were not really applying for adds. Once the loans were processed, he would specie the checks from the loans. By pretending to represent other people and deceiving the avow building, the manager took travel which constituted fraud and caused the rely losses. In order for the bank to avoid situations such as this embezzlement, it involve to make convinced(predicate) it had appropriate internal defys and procedures in come forth. calculate a look at what the manger was able to do, this shows the bank did no t pack sufficient internal controls which contributed to the embezzlement. The bank did puddle certain specifications of how practically the loan manger could approve and what should dislodge if the loan finishing amounts were higher. While the procedures were there, the controls for the procedures were not.

Some sort of reinforcement showing the loan committees approval should dedicate been attached with the loan application paperwork along with the required credit history from an freelancer firm. A unoriginal review should too adjudge taken place careless(predicate) of the amount of the loan as a cautionary 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 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 requisite to run a full essay, order it on our website: BestEssayCheap.com

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