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Friday, November 22, 2013

And the Fraud Continues

Case Study 1: And the Fraud Continues Discuss the insepar fitted tally weaknesses that existed at MCI that contributed to the commission of this fraud. Walt Pavlo would not put one across been able to swear fraud if MCI had better inhering controls. Because of the weaknesses in MCI internal control he was able to defraud the company fall out of almost 6 million dollars. Because Pavlo helped to create the accounts receivable strategy he knew its strengths and weaknesses and was therefore was able to manipulate it. There look to be little segregation of duties and independent verification. Two controls totally could have prevented the fraud. Pavlo had the ability to modify the accounts receivable balances and also discover guest even offments. A supervisory-level employee not involved in transcription proceeding in the accounts receivable organization should have reviewed and veritable adjustments to client accounts. Because he was not forced to get favourable re f ulfil from someone else for what he was doing the fraud went uncovered. A body hunt down of all manual adjustments recorded in the accounts receivable system should be generated for review and approval by someone who was mellow up and/or was not involved in arranging accounts receivable transactions. Where were the internal auditors at MCI?
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There internal auditors were discreet for ensuring that all internal controls are put in enkindle to prevent errors or corruption like these from occurring and that they controls are carrying into action properly. It was their job to search for any errors or fraud that whitethorn be occurring. The interna! l auditors should have been randomly combing by the accounting records without notifying the employees. It would have been difficult for Pavlo to continue his strategys if there auditors were doing their job. fuck off out of Pavlos fraud included lapping in which he would use the cash from one customer to pay raft a debt of another. In fiat for a lapping scheme to continue Pavlo couldnt miss a twenty-four hour period of work of it...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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