Reference no: EM132472598

Topic:

• You are the owner of Trust Us Inc. Betty Favor, one of the organization's most trusted employees, has worked there for 15 years. She socializes with you on a regular basis. Recently, you hired a young new accountant who just graduated from college with honors in accounting. This new employee, John Asset, tells Betty that the bank statement does not reflect the same bank balance as the bank reconciliation that he just prepared.' Previously, Betty had taken care of all banking matters and prepared the bank reconciliations. Betty comes into your office and says it appears that John does not know what he is doing because there are errors on the bank reconciliation. She states that she redid the bank reconciliation to fix the error. Do you think Trust Us Inc. is vulnerable to fraud? If so, where is the fraud and how was it perpetrated? What is your approach to solving this mystery?

Question 1: Develop an understanding of the organizational and individual ethical tones of the people involved

Question 2: Identify the organizational business process being examined and the value (cash or cash-convertible) involved

Question 3: Map out the organization, its people, and those who have access to its value.

Question 4: What are the people's jobs?

Question 5: How do the departments operate?

Question 6: What do you think about the problem the mystery is trying to exemplify?

Question 7: What is the process in the mystery?

Question 8: What accounts have the potential to be circumvented?

Question 9: What are the policies of the organization? Where are the distractions in the process?

Question 10: Where are the diversions in the process?

Question 11: What documentation is available to prove the case?

Question 12: What are the potential deceptions between the people and the organization?

Question 13: Where is there a clear division between the people and the organization?