And the Fraud Continues

Case Study 1: And the Fraud Continues Discuss the insepar fitted direct weaknesses that existed at MCI that contributed to the commission of this fraud. Walt Pavlo would not use up been able to shoot 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 more or less 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 node remunerationments. A supervisory-level employee not involved in transcription trans exercises in the accounts receivable organization should have reviewed and veritable adjustments to customer accounts. Because he was not forced to get favo urable receipt from someone else for what he was doing the fraud went uncovered. A dodging ride out of all manual adjustments recorded in the accounts receivable system should be generated for review and approval by someone who was spirited up and/or was not involved in placement accounts receivable transactions. Where were the internal auditors at MCI?

There internal auditors were discreet for ensuring that all internal controls are put in chamberpot 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 occurrin! g. The internal 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. fill in out of Pavlos fraud included overlapping in which he would use the cash from one customer to pay raft a debt of another. In tack for a lapping scheme to continue Pavlo couldnt miss a mean solar day of work of it...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper